The challenges facing Saudi’s ambitious tourism plans

Tourism is key to Saudi Arabia’s effort to diversify its economy away from fossil fuels, and its initial attempts are perhaps most visible in Riyadh: The country did not issue non-religious tourist visas until 2019, but they are now relatively easy to obtain online, while an array of sporting or cultural events are parading through the capital — on a trip last July, I attended an e-sports tournament. A new metro system aims to ease congestion in the capital, and an international airport is slated to open in 2030 with designs on being the biggest in the world. The country will host the 2034 men’s soccer World Cup and the 2030 World Expo.

But courting foreign travelers involves more even than these. As Reck pointed out, Saudi “can’t physically get many tourists to its sites,” and to some extent suffers from a chicken-and-egg problem — suppliers are wary of investing until visitors arrive, and tourists are reluctant to visit until enough attractions and accommodations are available. Infrastructure isn’t simply about the metro, but “last-mile” options: When I got off the metro during a January trip to Riyadh, I had to walk on the road to get to a couple of my appointments, because there was no sidewalk. Reck says GetYourGuide is unlikely to establish operations in Saudi Arabia for at least two years.

One challenge that has been overblown, Reck said, is the lack of alcohol in Saudi Arabia: Riyadh began allowing the sale of alcohol to non-Muslim diplomats a year ago, and officials widely believe the kingdom will eventually approve wider distribution of booze — albeit with heavy controls.

“That’s very much a Western fixation,” Reck said, adding, “alcohol is no longer a big deal, because people don’t drink as much anymore.”

Saudi Arabia wants to attract 70 million foreign visitors a year, including religious pilgrims, by 2030, and aims to draw around $80 billion in private-sector tourism investment by around the same time. It has a long way to go: About 30 million people visited last year, and the country pulled in about $3.8 billion in investment in the same period, the country’s tourism minister recently told Bloomberg.

Reck offered two potential models for Saudi Arabia. The first is next door — the UAE — and Riyadh already appears to be emulating the Emirati model of building its own global airline and advertising its geography as a convenient stopover for Europeans traveling to Asia or vice versa, then encouraging travelers to spend a day or two in Riyadh.

Reck’s other model is more unexpected: “Las Vegas has done such an incredible job of diversifying away from gambling — world class shows, restaurants, experiences. They blended a lot of different components into one destination, and it’s never overcrowded.”

While the kingdom’s cultural and historic monuments may be attractive, its human rights record remains a concern for many: FIFA, world soccer’s governing body, dropped plans for Visit Saudi, the country’s tourism body, to sponsor the 2023 women’s soccer World Cup after the hosts, players, and sponsors complained.

Still, even if Saudi Arabia risks falling short of its targets, it is making significant progress in retaining domestic tourists who might otherwise have gone to the UAE or elsewhere in the Gulf, if not farther afield, by opening up new sights and attractions and loosening restrictions on cultural events.

Another region poised for significant tourism growth in the years to come, Reck said, was Africa. The continent’s revenue from the sector was a “dip in the ocean” compared to Europe or North America, but GetYourGuide is seeing increased interest in “multiday trips” in North Africa, as well as locations in Kenya and Mozambique. Key to African countries’ efforts to lure visitors, he added, would be India. Whereas Chinese tourists once drove huge growth in the sector, Indian travelers are increasingly responsible for the industry’s expansion, Reck said.