Saudi Arabia invests heavily in Red Sea tourism with new mid-market projects

Saudi Arabia is diversifying its Red Sea tourism with new mid-market and budget projects, expanding beyond luxury.

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JEDDAH (The Thursday Times) — Saudi Arabia’s Red Sea coast, spanning a vast 1,800 kilometres, has long been associated with luxury tourism. The northern region has garnered significant attention due to its lavish mega projects, catering to high-end travellers seeking exclusive experiences. However, a new shift in focus is emerging, as Saudi authorities reveal fresh plans for mid-market and budget tourism developments along the central and southern stretches of the coast. This comprehensive tourism expansion is set to diversify the offerings for both domestic and international visitors.

Diversification of tourism development

The recent report by the Ministry of Investment and the Saudi Red Sea Authority (SRSA) outlines an ambitious agenda to bolster tourism across the region. While luxury continues to dominate the northern areas, new projects targeting more affordable markets are now planned for secondary cities, as well as regions beyond the main hubs of Riyadh and Jeddah. This effort aligns with Saudi Vision 2030’s goal to boost tourism, diversify the economy, and attract visitors from a range of socioeconomic backgrounds.

The Peninsula project in Rabigh

One of the key highlights in the mid-market segment is “The Peninsula” project in Rabigh, a coastal city just an hour away from the holy city of Makkah. This $293 million development aims to attract both domestic and international tourists. With its strategic location on the Red Sea, The Peninsula is expected to become a popular choice for travellers seeking beachside relaxation at a reasonable price point, combining coastal beauty with cultural proximity to significant religious sites.

Affordable beach resorts in Aseer

Aseer, located in the north, has emerged as a focal point for mid-range tourism projects. Among the developments in this region is a 60-room beach resort aimed at upper-middle-class families. Offering a more economical option than the ultra-luxurious Red Sea resorts, this property is expected to attract families who spend moderately on their vacations. The resort will provide access to pristine beaches while keeping costs affordable.

Additionally, a more extensive project in Aseer involves the construction of a 250-room, four-star beach resort, complete with a waterpark, beachfront chalets, kids’ club, and several restaurants. This development, positioned for families, will add a significant number of mid-tier hotel rooms to the region, further expanding Saudi Arabia’s tourism base. Aseer is predicted to see a substantial increase in tourism, with the number of visitors tripling by 2030, driven largely by domestic leisure travel.

Adventure hotels and eco-lodges in Taif

Taif, known for its cool mountain air and stunning landscapes, is also slated for new tourism developments. A mid-scale adventure park and eco-lodge project is on the horizon, aiming to cater to thrill-seekers and nature enthusiasts. With activities such as zip wires, tree-top rope walks, and equestrian experiences, this development will appeal to adventure travellers seeking an active escape in the southwestern part of Saudi Arabia. Taif is expected to nearly double its visitor numbers by 2030, solidifying its position as a premier destination for outdoor activities and ecotourism.

Budget and glamping Rrsorts in Medina and Haql

Further adding to the diversity of Saudi Arabia’s tourism offerings are budget and glamping resorts planned for Medina and Haql. In Medina, a budget-friendly camping resort is set to provide an affordable alternative for visitors looking to experience the natural beauty of the region. Meanwhile, Haql, a coastal city near Neom’s upscale Gulf of Aqaba project, is planning a similar glamping resort, targeting tourists who prefer a balance between outdoor adventure and comfort. Both developments will cater to the growing demand for unique, nature-centric experiences at accessible price points.

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