Will Saudi Arabia disrupt tourism for the better?
2020 was the year that travel died. The COVID pandemic all but halted almost all international tourism around the globe. Now that we’re beginning to discover a ‘new normal’, however, many references are being made to the re-birth of tourism; the opportunity for travel and tourism businesses to be rebuilt in a more sustainable way.
Saudi Arabia is taking this one step further. Unlike many other parts of the travel industry, they’re not rebuilding anything. Instead, they plan to build their very own tourism industry from scratch.
Many would argue that their timing is perfect. The Kingdom has the opportunity to develop its tourism industry according to the ‘new normal’, addressing the post-pandemic consumer’s every need and desire. Whilst much of the world has been in a state of reflection for the past year and a half, Saudi Arabia has had the opportunity to learn from the past mistakes that have been made elsewhere. But will they learn?
At the same time, many would also argue that there are too many obstacles for Saudi Arabia to overcome to become the world-leading tourist destination that it aspires to be. Let’s face it, the PR in recent years hasn’t been great. There are also cultural and religious barriers. Then human rights are a serious concern. One might wonder whether the Kingdom’s ambitions are realistic or whether this is just a PR stunt capitalising on a slightly utopian depiction of what could be. In theory, Saudi Arabia’s ambition is impressive, but will the finished reality live up to the ambition?
Tourism development plans in Saudi Arabia: A utopian publicity stunt?
Unlike much of the world, Saudi Arabia has remained largely unexposed to international tourism until recently. In an attempt to diversify income and move away from its reliance on oil, Saudi Arabia has announced some intriguing and exciting plans to enter the world stage. Its ambition is nothing less than to become the next leader in tourism in the Middle East. Saudi Arabia’s Vision 2030 project claims that within the next ten years the Kingdom aims to have tourism generate 10% of its GDP, create more than 1 million jobs and receive more than a million tourists a year, over half of which will be from overseas. The World Travel and Tourism Council has estimated that by the year 2025, the Saudi Arabia tourism industry will receive almost 40% more visitors than Dubai — the current leader for tourism in the Middle East.
If you follow the global job market for travel and tourism, you may have noticed a number of positions that have recently been advertised at the UNWTO based in Saudi Arabia. I expect these positions may have caught the eye of many industry stakeholders: with almost no international travellers visiting Saudi Arabia up until now, the launch of a United Nations regional office in Saudi Arabia will no doubt be an interesting prospect for many. The UNWTO Regional Office claims to be a centre of conversation, debate and decision-making, which already highlights the paradox between Western norms and the traditionally restrictive culture and laws in Saudi Arabia. And the hiring of Gloria Guevara suggests another possible paradox; with her prior views on climate change and experience with Cancun-esque mass tourism being contradictory to the progressive visions for tourism in Saudi Arabia.
So, what will tourism look like in Saudi Arabia? Will the Kingdom learn lessons from past mistakes elsewhere? Will it mitigate the negative impacts of tourism by implementing adequate tourism development planning, addressing the educational needs of future tourism workers and leaders? Will it place sustainability at the forefront? Or will we discover the development of another Dubai, Cancun or Benidorm, which promotes enclave tourism, has little regard for local culture and has significant negative impacts on the natural environment? At present, the answers to these questions are unclear, but what is known is that Saudi Arabia is in a unique position of growing its tourism industry from the ground up. The destination may not yet have the experience of other nations, but it does have the benefit of knowing what has and hasn’t worked elsewhere. Let’s hope they use it.
One thing that is looking promising is the way in which Saudi Arabia is diversifying its industry. The Kingdom plans to embrace cultural and heritage tourism through the development of historical sites such as Diriya, the birthplace of the first Saudi state. They will also promote visits to the famous Jeddah Floating Mosque, and a range of UNESCO World Heritage sites. One of the most notable attractions in this field is AlUla. A contemporary of Petra in Jordan, AlUla is intended to be the world’s next Macchu Picchu; with a range of fascinating historical sites, headlines promote it as ‘the world’s largest living museum’.
Likewise, Saudi Arabia plans to promote the natural environment through rural tourism attractions such as The Edge of the World, or Jebel Fihrayn as it is also known. This is a spectacular cliff-top setting with wide-reaching views of the barren valley floor to the horizon. There is also the world’s largest oasis which is located atop the summit of Al Qarah Mountain. With recent trends demonstrating an increased desire for outdoor experiences, these are likely to be popular tourist attractions with domestic and international tourists alike.
Neom is a fascinating project that has the potential to be a world-leading innovation. With aims to set the benchmark for the future of tourism and hotels, this city is futuristic and innovative in design and approach. Placing sustainability and people at its core, this project will enable the development of a trade free-zone built along one straight line. Built on three levels, the city will be strategically organised to satisfy the needs of living in 2030 and beyond by eliminating the need for cars and roads. This should go some way to addressing the major global challenges of climate change, pollution, traffic and human congestion. In fact, this city is said to be so strategic in nature that some call it a ‘system’ rather than a city.
Also aiming to set new standards in sustainable tourism development, Saudi Arabia’s Red Sea Project is the world’s most ambitious luxury tourism development. The development will be built on a chain of 90 undeveloped islands between the cities of Umluj and Al Wajh on the west coast of Saudi Arabia. It features at least two speciality restaurants, one on land and one over water, as well as a community building, a spa, a reception pavilion, housekeeping villas and a guest jetty. The development is grounded in sustainability, with sensitive architectural design throughout. Still in development the project has already won a number of awards including the Offsite Project of the Year, BIM Implementation of the Year and was Sustainable Organisation of the Year runner up.
Challenges facing Saudi Arabia in developing their tourism industry
The plans sound fantastic: a sustainable tourism industry that aims to promote culture, heritage and environmental conservation whilst capitalising on the economic gains received. If said plans come to fruition, then Saudi Arabia has the potential to be a world leader in effective and sustainable tourism management. The Kingdom could change the face of tourism forever. But one could be forgiven for wondering whether these proposals are realistic.
Whilst many of the published features refer to the Vision 2030 Project, much of this development is already well underway. The Saudi Minister of Tourism has promised to inject an incredible $200billion into resorts, airports, amusement parks and other tourism infrastructure crucial to achieving these goals. The Amazing 200 is a project which delivers a collection of 200 world-class travel experiences in Saudi Arabia, designed to cater to the next generation of domestic and international tourists. The Kingdom aims to target a range of different people from thrill chasers and arts enthusiasts to culture seekers, food aficionados and leisure lovers.
Education and training
One of the major issues that can be identified is a lack of travel industry knowledge and experience. With such ambitious plans, it is essential that staff are appropriately recruited and trained in order to implement Vision 2030 effectively. From a top-down perspective, the opening of a UNWTO regional office in the country and the recruitment of experienced leaders suggests that this has been considered. Will this, however, trickle down to front-line workers? And will Saudi Arabia have a large enough domestic workforce to undertake the invariably modestly-paid positions?
The UNWTO International Tourism Academy might provide some of the solutions, but this will not be enough to adequately train and educate a workforce of the size and scale that will be required. In order to develop a sustainable tourism industry, careful preparation is essential. We’re not looking at a lean startup here. There are too many examples from around the world where this has been the case to learn from. But with tourism development being a new endeavour for the Saudi people, it is certainly the case that large-scale training and development will be required.
One such partner is REVISIT. This consultancy has deep knowledge of experience design and delivery. Their holistic approach nurtures, educates and engages travellers before they leave home, whilst in-country and long after they return home. They also offer on-site development and training to help local operators understand and cater to the demands of travel agencies/tour operators and their clients. HNW and UHNW is clearly Saudi’s current focus and this requires a certain type of DMC-that is rare even in the West - one with an understanding of the needs of this clientele wherever they come from. Creating DMC businesses from scratch will require external guidance with significant experience, innovative and disruptive ideas. And to disrupt effectively it’s likely that their inspiration and insights will need to come from outside the conventional travel industry.
Another valuable approach for many of the industry’s future employees aiming to get a head start on preparing themselves for interviews and jobs is online training. Industry experts, like Dr Hayley Stainton at Tourism Teacher have made this kind of work their focus and could add great value to future tourism professionals and employers alike. Ultimately, it’s important to remember that with social media and review sites it doesn’t take much for a reputation to be tainted and for tourists to become disengaged, so getting the right training in place early is critical.
Impacts of reputation
And talking of reputation, it is no secret that Saudi Arabia has performed poorly on the world stage when it comes to human rights, equality and their rigid legal system, and this is likely to be a significant barrier to development. Will women feel comfortable travelling to a destination that did not allow females to drive a car or take part in physical education until 2018? How will the LGBTQIA community feel travelling there when same-sex relationships can attract the death penalty? I’m intrigued to see how the Kingdom addresses this issue.
Whilst there is, of course, no condoning past behaviours, what is needed here is cultural relativism. One must not judge without prior, and real, understanding. This is not to minimise Saudi’s poor track record regarding human rights. But instead to help both the outside world and Saudi Arabia understand each other; this is the most organic way to learn and better oneself. Once again, training and support in this area is imperative to ensure that this is efficiently implemented; Ben Lavender, Senior Private Travel Advisor at Brown + Hudson has made this one of his areas of expertise. What also needs to be understood is that Saudi Arabia is a country that, with the exception of pilgrims, has largely been closed off to the rest of the world until 2019. It can’t possibly be expected to change and embrace Western philosophies overnight. Instead, what might be more realistic is the implementation of progressive change through integration. Through tourism development, the West will discover Saudi Arabia and Saudi Arabia will be exposed to the West. And over time and through gradual change any previous negative connotations associated with Saudi Arabia will dissipate, as the destination (hopefully) succeeds in becoming a leader is sustainable development, with people, the environment and the economy at the heart of everything they do.
Boycotting and shaming help no one. In fact, there are several examples where international tourism has succeeded, despite leaders whose impact on the world hasn’t been great: Trump, Erdogan, Putin and Xi Jinping to name a few. Furthermore, Thailand is essentially a military state and yet just under 40 million tourists flocked to the tropical paradise in 2019. And Russia’s tourism industry increased by 20.5% in 2019, despite unsavoury views towards LGBTQIA equality. The question is where do we draw the line on ethical tourism and our own morals? Do we pick and choose to fit our own current narrative or even join in based on what is trending at the time?
Social impacts of tourism
With such vast cultural differences between Saudi Arabia and the West, we’re bound to see a rise in complications associated with tourism development in the region. Fortunately, the Kingdom can learn lessons from neighbouring UAE, which have successfully integrated their own culture with the expanding tourist market there. Of course, some compromises had to be made in order to draw a wider market, such as the acceptance of alcohol at leisure/hospitality properties. Oman is another wonderfully positive example to learn from; the country has largely managed to ensure that they do not lose heritage, including religion, whilst welcoming large numbers of tourists each year. They mostly managed this through a form of enclave tourism.
However, it is important to note that it’s impossible to entirely eliminate the negative social impacts of tourism. Culture clashes are inevitable to some extent, and this can be difficult to manage. Will tourists offend locals by not dressing conservatively or by behaving in a manner that would not traditionally be acceptable in Saudi culture? Probably. Will the influx of tourists with cash entice locals to turn to low-level sales jobs like those you can see at Petra, the Pyramids of Giza or Machu Picchu? Perhaps. There is no doubt that education often resolves many of these issues, but who will teach incoming tourists that they should not walk through malls wearing only a bikini top or show public displays of affection in public? This is something that is missing around the world and the Saudi Tourism Authority could benefit from implementing tools to educate tourists before their arrival. This could be as simple as in-flight adverts, explainer videos or pre-travel information emails or quizzes. One of the many reasons Antarctica has been so well preserved is because all travellers have to attend a compulsory lecture to learn the dos and do nots of behaviour there. I wonder whether other destinations could benefit from some sort of cultural visa that ensures a traveller has done something tangible to educate themselves before arrival into an entirely different culture.
Travel is seen as a right but in the context of climate change and over-tourism perhaps we’ll grow to see it increasingly as a privilege. And maybe it will be a privilege we’ll have to work a little harder to earn by taking an online course to prepare ourselves for the journey we’re embarking upon. Both we and local communities would stand to benefit from such an initiative.
Another issue worth noting is that of authenticity. One of the requirements for Saudi’s Amazing 200 experiences is that each is authentic, local, relevant to Saudi culture or history. But, if Saudi Arabia demonstrates the progressive social change that was outlined previously, will it continue to be authentic? And what of the introduction of sports and event tourism? The Saudi Public Investment Fund (PIF) is investing huge figures to bring various sporting events to the country. They’ve successfully hosted high-level boxing. They have agreed recently with Electric Sea Racing Limited (E1 Series) to create the world’s first electric powerboat racing championship and Formula 1 is to arrive in 6 months. Showcasing its huge reach, Saudi Arabia is putting itself on the map as a new sporting Mecca to rival places like Las Vegas. This brings with it much potential but fails to recognise the authenticity of the nation and what it has to offer and could result in a rise in negative social impacts.
Enclave tourism
Papers discussing the concept of enclave tourism generally refer to some of its negative connotations. Issues such as economic leakage and limited economic benefits to the local community. And the Red Sea Project seems especially enclaved. So much so that a private airport is being built exclusively for this ‘resort’. This points towards them planning on this to be another Mayakoba in Tulum or any of the Egypt Red Sea resorts.
However, enclave in the context of Saudi Arabia doesn’t have to be a bad thing. In fact, it could offer some solutions to the negative social impacts that may occur. Enclaves already exist in Saudi Arabia when it comes to foreign communities; ex-pats have freedoms awarded to them within the confines of their enclave compounds that they do not have elsewhere. If the Kingdom uses a similar approach for holidaymakers then the country could retain its authenticity to a fuller extent. For example, tourists can dress as they like and drink alcohol in a tourist holiday resort, but not elsewhere in the country.
One of the biggest problems traditionally associated with the enclave model is that the local economy has limited financial rewards. This is most notably the case when hotels and tourist areas are owned by international corporations and when the products used within these developments are imported. In this case, the Red Sea Development Project is a closed joint-stock company owned solely by PIF so tourism will need to be carefully managed to ensure the use of local companies, products and services. If that happens, then the negative impact of tourism can be largely mitigated. But as noted before, workers need to be sufficiently educated and trained for effective planning in this regard to take place.
Can Saudi Arabia really be the new world leader in tourism?
Ultimately, Saudi Arabia can benefit from recent historical successes and failures. Dubai’s rapid expansion has been a successor to its depleting oil reserves. 2019 saw 16.73 million tourists in Dubai and to play the long game it will require further heavy investment.
At the other end of the spectrum, nearby Oman with 3.5 million tourists has grown organically while maintaining its natural beauty by implementing rules such as the ban of high-rise buildings. However, whilst tourism is growing in Oman, it is relatively early days in its development, thus the true outcomes are yet to unfold.
All eyes will be on Saudi Arabia as their projects take shape. It is entirely possible that in Saudi we will witness a new kind of tourism. The Kingdom has the potential to disrupt and redesign the tourism industry as we know it, and that’s an exciting prospect. There is a unique opportunity here to redefine archaic travel perceptions and to make the travel and tourism industry better, not only in Saudi Arabia but around the world. There is space for Saudi Arabia to do something extraordinarily special here and with some careful tourism planning, training and education, this can happen.