Saudi Arabia Strengthens Its Global Tourism Position with New Mid-Range Resorts and Religious Tourism Expansion Aligned with Vision 2030

Published on December 9, 2025

Saudi Arabia is actively strengthening its global tourism position by expanding its offerings with new mid-range resorts and a significant boost to its religious tourism infrastructure. This move is a key component of the country’s Vision 2030 strategy, aiming to diversify the economy and attract 150 million visitors annually by the end of the decade. The development of more affordable resort options alongside the enhancement of pilgrimage facilities for Mecca and Medina demonstrates the kingdom’s commitment to catering to both leisure travelers and religious visitors, ensuring a broader international appeal and long-term tourism growth.

Expanding Hotel Options Beyond Luxury

Historically, Saudi Arabia’s tourism industry has centered around luxury resorts, particularly along its picturesque Red Sea coast. These resorts, which cater to high-end clientele, have room rates averaging around $2,000 per night. However, in recent years, the kingdom has recognized the need to offer more affordable options for middle-class and upper-middle-class travelers. The shift is expected to make Saudi Arabia more accessible to a broader international audience, offering greater variety for leisure travelers who previously had limited choices outside of luxury accommodations.

According to industry sources, Saudi Arabia is now focusing on the development of new resorts that provide a more affordable, yet still high-quality, experience. One notable project is the construction of ten new resorts on Shebara Island, set to open in the coming months. These resorts will offer “much lower price points” than existing luxury properties, broadening the kingdom’s appeal. The move is part of a larger effort to cater to a more diverse range of tourists, including those seeking a high-value experience without the premium price tag associated with luxury resorts.

The focus on mid-range accommodations reflects a growing trend in global tourism, where travelers are increasingly seeking a balance between quality and affordability. With the addition of more accessible hotel options, Saudi Arabia aims to attract a wider variety of international visitors, particularly from markets that have been previously underserved. This includes both leisure travelers and those looking for more budget-friendly religious tourism options.

Religious Tourism: A Growth Engine

While expanding its offerings for leisure travelers, Saudi Arabia continues to prioritize religious tourism, which remains a cornerstone of the kingdom’s tourism strategy. As one of the world’s most important pilgrimage destinations, Saudi Arabia aims to nearly double the number of pilgrims visiting the holy cities of Mecca and Medina, reaching 30 million visitors by 2030. This ambitious target is part of the kingdom’s broader efforts to grow its tourism sector and further position itself as the leading global destination for religious travel.

To meet the rising demand, the government is investing heavily in expanding its religious tourism infrastructure. The kingdom is adding tens of thousands of new hotel rooms, ensuring that there is adequate accommodation for the influx of religious visitors. Additionally, Saudi Arabia is working to streamline access for pilgrims by enhancing visa policies. One such initiative includes a proposed Schengen-style visa arrangement for Gulf Cooperation Council (GCC) nationals, expected to be implemented by 2026 or 2027. This change will simplify travel across the region and make Saudi Arabia even more accessible for potential pilgrims from neighboring countries.

With these developments, Saudi Arabia aims to not only accommodate religious tourists but also provide them with a seamless and enriching travel experience. By expanding the range of hotel offerings and improving the ease of access, the kingdom is strengthening its role as a global hub for religious tourism.

Alignment with Vision 2030

The expansion of mid-range hotels and the increase in accommodations for religious visitors are integral to Saudi Arabia’s Vision 2030, which seeks to reduce the country’s dependence on oil revenues and diversify its economy. Tourism, as a growing sector, plays a key role in this transformation. By increasing the number of available accommodations and offering more diverse travel experiences, Saudi Arabia is positioning itself to capture a larger share of international tourism, particularly in the leisure and religious sectors.

The move to expand the hotel market is expected to bring numerous benefits, including increased hotel occupancy rates, longer stays, and higher tourism-related revenues. Industry experts note that by broadening its tourism base, Saudi Arabia will be able to tap into new segments of the travel market, ensuring sustainable growth for years to come. This diversification of offerings will not only attract more international travelers but will also foster a more resilient tourism sector in the long term.

Looking Ahead

As Saudi Arabia continues to develop its tourism infrastructure, the country is poised to become a leading destination for both leisure and religious travelers. With its focus on mid-range hotels, expanded pilgrim accommodations, and ongoing regulatory improvements, the kingdom is laying the groundwork for a sustainable and diverse tourism industry. Global hotel chains and investors are keeping a close eye on the opportunities in the Saudi hospitality market, signaling strong growth potential for the kingdom’s tourism sector as it moves towards its Vision 2030 goals.