After luxury push, Saudi Arabia targets broader tourist market, minister says

Saudi Arabia is building up its mid- and upper-mid-range tourism options and plans to increase access to hotel accommodation for religious pilgrimages after years focused on developing expensive luxury resorts, the kingdom's tourism minister said.

"We started with building luxury destinations for luxury travellers. And we have already started building destinations for the middle class and upper middle class," Saudi Tourism Minister Ahmed Al-Khateeb told Reuters. "We will not ignore this segment," he said on the sidelines of the U.N.'s yearly tourism conference, being hosted in Riyadh for the first time.

Attracting tourists is a central pillar of Saudi Crown Prince Mohammed bin Salman's Vision 2030 plan to diversify the kingdom's economy away from oil and transform society in the once-ultra conservative kingdom. Under the plan, Saudi Arabia aims to attract 150 million tourists per year by 2030, at least a third of them from abroad.

With flagship Red Sea coast resorts running at around $2,000 per night, few mid-income travellers currently have hotel options. Khateeb said 10 new resorts due to open in the coming months on the Red Sea's Shebara Island would offer a "much lower price point" than existing options, without providing figures.

Religious tourism remains at the core of Saudi Arabia's economic plans. Khateeb said Saudi Arabia planned to nearly double the number coming to the kingdom for pilgrimage to the holy cities of Mecca and Medina to 30 million by 2030, enabled by tens of thousands of new hotel rooms.

Saudi Arabia is looking to encourage people in the region to come to the kingdom, including via a plan to create a Schengen-style visa for Gulf Cooperation Council countries. Khateeb said that should become available "in 2026, maximum 2027".