Saudi Arabia’s Tourism Ecosystem: The Next Frontier for Global Hospitality.

Saudi Arabia is rewriting the global playbook for tourism and hospitality with its Vision 2030 initiative, anchored by eight transformative hubs designed to attract travelers, investors and hospitality giants from around the globe. From the ultra-luxury Trump Towers in Jeddah to the eco-tourism haven of Al Baha, the Kingdom offers an unparalleled mix of cultural authenticity, sustainability and cutting-edge innovation.

In this edition of The Future of Luxury by Summit Communication Group we explore opportunities for hotel chains and tourism brands to align with Saudi Vision 2030 , showcasing why the Kingdom is fast becoming the most coveted destination for luxury, culture and sustainability in hospitality.

For hotel groups eyeing expansion in the next five years, this article explores why Saudi Arabia presents a once-in-a-lifetime opportunity to tap into an evolving tourism ecosystem poised to redefine the industry.

"Saudi Arabia's Vision 2030 is an ambitious yet achievable blueprint that expresses our long-term goals and expectations, reflecting the Kingdom’s strengths and capabilities." Crown Prince Mohammed bin Salman

The Rise of Confidence in Saudi Arabia’s Tourism Revolution

When news broke that Trump Towers Jeddah would anchor the skyline of Saudi Arabia's Red Sea coast, it wasn't just a headline; it was a declaration. For decades, the Trump brand has symbolized luxury real estate on a grandiose scale, and its arrival in Jeddah signals confidence and a resounding endorsement of Saudi Vision 2030. The project, slated to open by 2027, is poised to redefine Jeddah's hospitality landscape and cement the city’s position as a global tourism and business hub.

In many ways, the Trump Towers project encapsulates the Kingdom’s bold ambitions. This sprawling mixed-use development will feature ultra-luxury residences, a five-star hotel, and premium office spaces, all designed with meticulous attention to opulence and sustainability. Trump Towers Jeddah is more than a building; it is a symbol of Saudi Arabia’s determination to rival global powerhouses like Dubai. Eric Trump, Executive Vice President of the Trump Organization, described the project as “a partnership of historic proportions. Jeddah is a gateway to the world, and Trump Towers will embody the ambition and elegance that Saudi Arabia has become known for.”

The choice of Jeddah is no accident. Strategically located on The Red Sea , the city has long been a commercial hub, but now it is being recast as a cosmopolitan destination for high-net-worth travelers and international business elites. Trump Towers Jeddah aims to capitalize on this transformation, offering unparalleled luxury and amenities that echo the success of similar Trump properties in New York, Dubai, and Istanbul. A source close to the project notes, “The decision to bring Trump Towers to Jeddah sends a clear message to global investors: Saudi Arabia is not just open for business; it’s raising the stakes.”

"We are delighted to collaborate with Dar Global on our third project together, further expanding our footprint in the Middle East and growing the Trump standard of luxury in the region. Trump Tower Jeddah is a testament to our shared commitment to excellence and innovation." Eric Trump, Executive Vice President of the Trump Organization

The development is part of a broader wave of confidence surging through Saudi Arabia’s tourism and hospitality ecosystem. Over $800 billion has been committed to the sector over the next decade, with international investors and hotel groups flocking to the Kingdom to secure their place in this burgeoning market. Trump Towers Jeddah represents the nexus of this momentum, combining the allure of a globally recognized luxury brand with the resources and vision of Saudi Arabia’s government-backed Tourism Development Fund.

For global hotel groups, Trump Towers Jeddah offers a masterclass in what Saudi Arabia promises. The Trump Organization, known for its cautious approach to expansion, did not enter this market lightly. Industry analysts have praised the move as both strategic and symbolic, with Saudi Arabia’s Minister of Tourism Ahmed Al-Khateeb emphasizing, “This project demonstrates the level of confidence that global brands have in Saudi Arabia’s future. Trump Towers Jeddah will set the benchmark for luxury and innovation in the region.”?

The project also leverages Jeddah’s burgeoning role in the Red Sea ecosystem. From the nearby Red Sea Global development—an ultra-luxury resort network spanning untouched islands—to the King Abdulaziz International Airport, Jeddah is becoming a magnet for high-end tourism. Trump Towers Jeddah, with its commanding views of the Red Sea and proximity to major international hubs, is perfectly positioned to benefit from this surge.

Architecturally, the design is as ambitious as the Kingdom’s vision. Early renderings reveal sleek, mirrored facades reflecting Jeddah’s skyline and the shimmering waters of the Red Sea. The interiors, according to Eric Trump, will combine “the timeless elegance of our brand with elements that honor Saudi Arabia’s cultural heritage.” The development’s focus on sustainability—integrating solar energy and smart building technologies—is equally forward-looking, aligning with Vision 2030’s environmental goals.

"Our ongoing collaboration with The Trump Organization not only redefines luxury living but also strengthens Jeddah’s position as a world-class urban hub." Eric Trump, Executive Vice President of the Trump Organization

However, the significance of Trump Towers Jeddah goes beyond bricks and mortar. It embodies a shift in perception. For decades, Saudi Arabia’s tourism sector was defined by religious pilgrimage. Today, the Kingdom is reshaping itself into a destination for luxury, culture and innovation. “This is not just about hospitality; it’s about creating an experience that resonates globally,” notes Tareq Al-Shaghrood, General Manager of Investment Planning at the Ministry of Tourism of Saudi Arabia . “Trump Towers Jeddah reflects the confidence the world has in Saudi Arabia, but it also reflects the confidence Saudi Arabia has in itself.”

The international ripple effect is undeniable. Hotel groups and developers who may have hesitated to enter the Saudi market now see the arrival of Trump Towers as a signal to act. From 文华东方酒店集团 ’s expansion into NEOM ’s Sindalah Island to Hilton’s Waldorf Astoria in Diriyah, brands are racing to secure their positions in this evolving landscape. The Trump project, in its grandeur and audacity, has crystallized the opportunities that Saudi Arabia offers—a market unafraid to think big, to demand the best, and to redefine the rules of global tourism.

For Saudi Arabia, the stakes are immense. The Kingdom’s ability to execute projects of this magnitude will determine whether it can sustain its momentum and deliver on the promises of Vision 2030. But for now, Trump Towers Jeddah stands as a beacon of ambition, a glittering confirmation that Saudi Arabia is no longer merely following the tourism playbook—it is rewriting it.

This Unlocks the Big Opportunity in Global Tourism

But here’s the twist: while Trump Towers Jeddah dazzles as a beacon for ultra-high-net-worth individuals and the gilded elite, it’s the much larger and often overlooked middle market that carries the weight of Saudi Arabia’s true potential. This is the demographic that hotels, airlines and tourism operators across the globe have long learned to woo—the aspirational luxury travelers, the jet-setting families in search of meaningful experiences, and the business travelers who measure their stays in both comfort and convenience. This market, vast and eager, isn’t simply the foundation of the global tourism industry; it’s the engine driving its growth.

According to industry estimates, middle-tier luxury travelers account for over 60% of global hotel revenues, a figure expected to grow as emerging economies expand and disposable incomes rise. For Saudi Arabia, which sits at the crossroads of Asia, Europe, and Africa, the potential is staggering. But how does a nation built on grandeur and exclusivity recalibrate to embrace this broader audience without losing its newfound luster? That’s where the Kingdom’s boldest experiments come into play and its greatest gameplan begins.

Saudi Arabia is crafting a new global narrative in tourism. With its sweeping Saudi Vision 2030, the Kingdom is setting the stage for an economic and cultural transformation that aims to position it as a global leader in hospitality. Through a meticulously planned network of eight tourism hubs, Saudi Arabia is boldly stepping onto the world stage, mirroring—yet refining—Dubai’s meteoric ascent. Unlike its glitzy neighbor, Saudi Arabia’s approach is not just about spectacle; it’s about substance, sustainability, and stitching together the threads of heritage and modernity into an ecosystem of global tourism that could redefine the industry.

In the past year alone, Saudi Arabia has emerged as one of the fastest-growing tourist destinations. In 2023, the Kingdom welcomed over 20.9 million Asian tourists, generating $25.7 billion in receipts. This explosion in numbers is not a fluke. It’s the product of an audacious, forward-thinking strategy that leverages Saudi Arabia’s geographical position at the crossroads of Asia, Europe, and Africa.

The Eight Hubs of a Tourism Ecosystem Like No Other

At the heart of this transformation are the Tourism Development Fund (TDF) and Saudi Vision 2030’s commitment to an inclusive, interconnected tourism ecosystem. The TDF has created financing mechanisms such as the Tourism Empowerment Program and the Hospitality Investment Enablers (HIE) initiative, which aim to attract $11 billion in private investments and add $4.3 billion to annual GDP by 2030. These programs go beyond financing large-scale developments. They empower small and medium-sized enterprises (SMEs), ensuring that the benefits of tourism extend deep into the Kingdom’s economy.

1. Al Ahsa: The Cultural Heartbeat

Saudi Arabia’s eight tourism hubs encapsulate this vision. Al Ahsa, one of the Kingdom’s most ambitious projects, spans 500,000 square meters and brings together history, culture, and contemporary luxury. Known for its UNESCO -listed cultural heritage, Al Ahsa is home to the world’s largest interactive fountain and a bustling traditional souk. Here, Hyatt’s investment in luxury accommodations reflects the allure of tying modern hospitality to ancient roots. Tareq Al-Shaghrood, General Manager of Investment Planning at the Ministry of Tourism, describes Al Ahsa as “a cultural heartbeat, a living narrative that weaves together centuries of history with a modern global vision.”

"Our mission is to drive growth in Soudah and parts of Rijal Almaa, contributing to Saudi Arabia's national GDP and creating thousands of jobs." Soudah Development Company

?2. Al Baha: Adventure and Eco-Tourism

Further south, Al Baha offers a counterpoint to Al Ahsa’s cultural magnetism. Nestled amid breathtaking mountains, Al Baha is Saudi Arabia’s eco-tourism jewel, featuring luxury accommodations, an adventure park, and sustainable tourism initiatives. Accor’s Swiss?tel Al Baha, currently under development, is a striking example of how Saudi Arabia is tapping into global trends toward environmentally conscious travel.

"I am very bullish about Saudi Arabia. They have a plan, they have a leader, they have a vision, they have the right brands, and they have the financial resources, geography, and history. So, it is the country not to miss." Sébastien Bazin, CEO of Accor

It is here that the Kingdom’s strategy begins to echo Dubai’s early focus on nature-driven attractions like the Al Marmoom Desert Conservation Reserve. But unlike Dubai, Saudi Arabia has taken pains to ensure that its natural wonders remain unspoiled even as they become accessible to the world.

3. Taif: Wellness Meets Nature

Meanwhile, Taif, spanning 94,000 square meters, positions itself as the Kingdom’s wellness retreat. Known for its famed Taif rose farms, this hub seamlessly blends wellness, luxury, and nature. The Six Senses Southern Dunes, developed by IHG, encapsulates the modern traveler’s quest for serenity and sustainability. Keith Barr, CEO of IHG, puts it succinctly: “Wellness and sustainability are not just trends; they are the future of hospitality.” Taif’s model is clear: attract global travelers with bespoke experiences that cater to body, mind, and soul while anchoring those experiences in a sense of place.

4. Riyadh: The Urban Epicentre

The ambition of these projects is only matched by Saudi Arabia’s audacity in reimagining urban tourism. In Riyadh, the Waldorf Astoria Diriyah Gate epitomizes the Kingdom’s move to establish itself as a global business and leisure hub. This sprawling development is a pointed challenge to Dubai’s dominance in luxury urban hospitality.?

5. Jeddah: The Coastal Magnet

Similarly, Jeddah, with its pristine Red Sea coastline, is reinventing itself as a coastal luxury destination, drawing brands like Four Seasons and Marriott to capitalize on an untapped international market.

6. NEOM: The Futuristic Megacity

But it is NEOM, Saudi Arabia’s futuristic megacity, that captures the audacious spirit of Vision 2030 most vividly. Its crown jewel, Sindalah Island, is set to rival Dubai’s Palm Jumeirah with its ultra-luxury resorts and high-tech infrastructure. For those familiar with Dubai’s bold reinventions of the urban landscape, NEOM represents the next level—a marriage of technological innovation, environmental sustainability, and architectural daring that promises to make it a global icon.?

7. Yanbu: The Gateway to Marine Tourism

The remaining hubs, Yanbu, with its focus on marine tourism round out Saudi Arabia’s tourism ecosystem. These hubs, strategically positioned to draw regional and international visitors, ensure that the Kingdom offers something for every kind of traveller, from luxury seekers to eco-tourists, from business leaders to leisure explorers.

8. Dammam and Khobar: The Industrial and Financial Powerhouses

Comparisons to Dubai are inevitable but incomplete. While Dubai dazzled the world with its ability to build the extraordinary from scratch, Saudi Arabia is building with a more layered strategy as demonstrated by Dammam and Khobar. By incorporating sustainability at its core and weaving in authentic cultural narratives, the Kingdom is not merely competing with Dubai—it is rewriting the rules of Middle Eastern tourism.

The results are already apparent. Brands like 希尔顿全球酒店集团 , 雅高 , 洲际酒店集团 and 文华东方酒店集团 are not just entering Saudi Arabia—they are embedding themselves in its ecosystem, creating partnerships that reflect the Kingdom’s vision of inclusivity and innovation. These brands are drawn not only by Saudi Arabia’s incentives—VAT reductions, tax exemptions and access to government-owned land—but by the opportunity to be part of what Tareq Al-Shaghrood calls “a future that is being built, not inherited.”

For CEOs and boards of international hotel groups, the message is clear. Saudi Arabia represents a frontier of possibilities, a chance to participate in a bold experiment that could redefine global hospitality. With its eight hubs, robust infrastructure, and commitment to sustainability, Saudi Arabia is not just a destination; it is a movement. And for those willing to take the leap, it promises not only returns on investment but a stake in the future of global tourism.

Point of View: JLL’s 2025 Global Real Estate Outlook

The JLL 2025 Global Real Estate Outlook outlines pivotal trends shaping the commercial property landscape. For CEOs of international hotel groups and management companies, these insights highlight Saudi Arabia as a high-potential market, offering a stark contrast to supply-constrained Western cities. By leveraging the Kingdom's strategic initiatives, hospitality brands can align with global trends, seize first-mover advantages, and drive transformative growth.

1. Supply Shortages Will Intensify for In-Demand Assets

As supply constraints in traditional markets like the U.S. and Europe worsen, Saudi Arabia offers a rare alternative: an abundant pipeline of prime hospitality developments supported by government incentives. Brands such as Hilton and Accor are capitalizing on this opportunity, with Hilton planning to introduce Waldorf Astoria Diriyah Gate, a luxury property that anchors Saudi Arabia’s cultural resurgence in Riyadh. Similarly, Accor has announced a major expansion plan, committing to 40 new properties across the Kingdom by 2030, ranging from economy to luxury segments.

In contrast to London’s oversaturated luxury market, where properties like The Savoy are forced to cut rates to sustain occupancy, Saudi Arabia’s calculated approach avoids overdevelopment while meeting increasing tourism demand.

2. Early-Mover Advantage Peaks in 2025

Early-stage investments in Saudi Arabia promise substantial returns. The Kingdom's Tourism Development Fund (TDF) has allocated $11 billion to attract private investment in tourism infrastructure, emphasizing early partnerships. For example, Marriott International has announced a wave of new projects, including The Ritz-Carlton Reserve at AlUla, which combines ultra-luxury with eco-tourism. These ventures allow early movers to establish flagship properties that set benchmarks in a burgeoning market.

Early movers in Saudi Arabia enjoy benefits that traditional Western markets like London no longer offer due to overextension. By securing prime locations and leveraging government partnerships, brands can lock in long-term profitability.

3. Corporate Confidence Fuels Demand for Hospitality

Saudi Arabia’s Vision 2030 targets tourism as a cornerstone of economic diversification, attracting not just leisure travelers but corporate clients. Companies such as NEOM are actively integrating hospitality into futuristic business hubs, creating demand for hotels that cater to business travelers and conferences. The Sindalah Island project—part of NEOM—will feature luxury resorts and premium accommodations, blending leisure and business tourism.

In contrast, cities like London and New York face corporate demand uncertainties, with many firms reducing space and travel budgets. Saudi Arabia’s integrated approach to hospitality ensures a consistent pipeline of high-value corporate clients, positioning the Kingdom as an emerging leader in business tourism.?

4. Sustainability and Decarbonization Drive Value

Saudi Arabia’s focus on sustainable tourism aligns with global trends, offering long-term growth opportunities. IHG Hotels & Resorts, for instance, is expanding its Six Senses brand in Saudi Arabia, emphasizing eco-conscious luxury. The Six Senses Southern Dunes in AlUla integrates renewable energy and conservation practices, setting a new standard for sustainable hospitality.

"Saudi Arabia's sustainability strategy under Vision 2030 emphasizes renewable energy expansion and improved energy efficiency across sectors, targeting a net-zero emissions goal by 2060." PwC Middle East

Many Western markets are still playing catch-up, retrofitting aging properties to meet new energy standards. Saudi Arabia’s greenfield developments allow investors to build sustainability into projects from the outset, avoiding the costly retrofitting processes faced by European and U.S. markets.

5. Conversions and Adaptive Reuse Will Accelerate

While Western markets are turning to office-to-hotel conversions to combat space obsolescence, Saudi Arabia takes a proactive approach by incorporating mixed-use developments into its urban planning. The Diriyah Gate project, a UNESCO World Heritage Site, blends historical preservation with modern luxury accommodations, providing a seamless example of adaptive reuse that enhances cultural tourism.

"Saudi Arabia's Vision 2030 is no longer aspirational, it’s now." Jerry Inzerillo, CEO of Diriyah Gate Development Authority

Brands like Four Seasons have invested in similar projects, creating iconic properties that leverage Saudi Arabia’s cultural assets. These efforts ensure that hospitality developments remain both relevant and profitable, avoiding the obsolescence risks that plague older markets.

6. Recovery and Resilience are Key Themes

Saudi Arabia’s tourism sector demonstrates resilience through government-backed initiatives such as the Tourism Empowerment Program, which provides SMEs with flexible financing and fintech-driven solutions. This inclusive approach strengthens the entire tourism ecosystem, allowing global players like Hyatt to thrive in collaboration with local businesses.

For example, Hyatt’s partnership with local developers for the Hyatt Regency Riyadh Olaya reflects a model of resilience that integrates global standards with local expertise. This contrasts with London’s fragmented market, where competition often undermines collaborative growth.

7. Hospitality Sector Growth Outlook

Saudi Arabia’s strategic hubs, such as AlUla, Al Ahsa, and Taif, are transforming the global hospitality landscape. Mandarin Oriental recently announced its entry into the Saudi market with a resort in Diriyah, combining the brand’s signature luxury with Saudi Arabia’s rich cultural heritage.

As JLL notes, demand for smart systems and AI-driven operations is rising globally. Saudi Arabia’s greenfield projects, supported by cutting-edge technology, offer hospitality groups an opportunity to lead in digital transformation. This positions the Kingdom as a future-ready destination in stark contrast to more traditional, less adaptable markets.

Saudi Arabia as a Blueprint for Growth Expansion

For international hotel groups and management companies, Saudi Arabia offers an unparalleled combination of incentives, strategic planning, and market potential. In a global landscape where supply shortages and legacy challenges dominate Western markets, the Kingdom’s Vision 2030 is a beacon of opportunity.

By investing early, diversifying offerings, and prioritizing sustainability, CEOs can secure a competitive edge in one of the world’s fastest-growing tourism markets. Saudi Arabia’s calculated approach to hospitality development not only contrasts sharply with London’s oversupply crisis but also sets a new standard for the future of global hospitality.

Written by Gregory Gray, CEO and Founder of Summit Communication Group

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