There appears to be no stopping Saudi Arabian ambition to dominate tourism, investment and sporting tournaments between now and its well-publicized Vision2030 national overhaul.
More than $1 trillion of investment is estimated to have been spent on tourism and hospitality offerings and associated infrastructure.
Soft power through sports is another Saudi route of investment as it seeks to move a little farther away from a dependence on oil.
Its fledgling soccer Roshn Pro League, sponsored by real-estate developer Roshn that has interests in the hotel industry, spent almost $1 billion in 2023 during the short transfer window when players can be bought and sold, with deals finalized for such superstars as Cristiano Ronaldo, Neymar da Silva Santos and Karim Benzema.
Global hotel firms have not been slow to respond to the Saudi Arabian desire for the presence of the best-known and -celebrated brands.
Some of these firms have been present in Saudi Arabia for decades, such as IHG Hotels & Resorts, which opened the InterContinental Riyadh in 1975, while other established brands are with the giga-projects making their first foray into the kingdom.
Some new brands have been created domestically for the giga-projects and other major developments.
Ed James, head of content and research for the Middle East at business advisory MEED, said tourism is one of the major thrusts of the kingdom’s Vision 2030.
“The kingdom’s overarching plan to create projects that create and grow economic, social and cultural diversification for the country. The giga-projects are massive multi-use developments planned to incorporate elements like entertainment, wellness, culture, technology and more, all at mega-scale,” he said.
Hotel News Now’s 2023 coverage of the giga-projects focused on the impact and potential for Saudi Arabia's hotel industry.
The giga-projects initiative in Saudi Arabia, part of that country’s ambitious Vision 2030 program, is one of the largest tourism-related infrastructure projects the world has ever seen, providing huge opportunities for international and domestic developers and brands.
With Saudi Arabia's Vision2030 tourism goals top of mind throughout the country, hotel development has increased significantly, and developers are receiving unparalleled support from the Saudi government.
Saudi Arabia's public and private sectors are united in working toward the country's Vision2030 goal of welcoming 100 million tourists per year, which requires the development of an additional 315,000 hotel rooms.
The giga-projects initiative in Saudi Arabia, part of the country’s ambitious Vision2030 program, has been boosted by the news that soccer’s 2034 FIFA World Cup is to be held in the country. Saudi Arabia was the only bidder.
Aldara and Soudah are latest two giga-projects announced, although the exact hotels due to come with them have not yet been announced.
Overall, approximately $884 billion has been invested, for which less than 10% ($60.6 billion) of contracts have been awarded, James said.
Work has not begun at several, but the Red Sea Global project has opened its first hotel, Six Senses Southern Dunes, with two more due to open, including the St Regis Red Sea Resort.
Many more developments, and a lot more noise, will be generated by the giga-projects in 2024.
The map below shows the major giga-project locations and the brands, from international and domestic firms, that have opened there or have signed to do so.
Where known, the map for each giga-project lists the hotel’s full name; if that name is not known as yet, then what is listed is the name of the hotel firm or brand that has been announced in a deal for any of the sites. Also listed are hotels with new brand names, which might end up technically as independents.