Driven by shifting consumer behaviour and expectations, the nature of high-end tourism is undergoing change. Once associated with opulence and grandeur, luxury travel now leans towards subtler realms of uniqueness, exclusivity and personalisation.

Amid global economic uncertainty and rising inflation, the luxury tourism market is holding up well, its clientele of affluent and high-net-worth individuals capable of riding out economic fluctuations. They perceive travel not merely as indulgent holiday time, but as an enriching investment. High-end travellers also show a growing awareness of their impact on the environment; sustainability is a concern across the global-traveller demographic.

In response to this emerging dynamic, Saudi Arabia has been sculpting its identity as a luxury destination that harmoniously blends rich cultural heritage, immersive experiences and gracious hospitality. Pioneering projects such as the Red Sea Development on the Kingdom’s western coast are a feature of this transformation. Billed as a regenerative tourism destination, powered by 100 per cent renewable energy, the Red Sea project traverses an archipelago of more than 90 untouched islands, dormant volcanoes, mountains and other natural treasures. It aims to weave sustainable luxury into the Kingdom’s cultural heritage and unspoilt landscape, emphasising minimum environmental impact, increasing biodiversity and creating work for people in local communities.

Business meets leisure

Meanwhile, the tourism industry has welcomed a new travel trend in recent years, in the shape of “bleisure”, a portmanteau term for the growing practice of adding in some downtime before or after a business trip. Bleisure is gaining traction as the post-Covid corporate world embraces flexibility, and the boundaries between work and leisure become less rigid.

A 2022 survey of global travellers revealed that 89 per cent of respondents wanted to add some leisure time to their next business trip. Currently, global cities such as New York, Paris and London generate the most bleisure trips each year, but that may change. “The global pandemic revealed not only that work can be done from anywhere, but also that a work-from-anywhere approach to business can yield greater employee productivity, creativity and loyalty,” says Anita Mendiratta, Founder & President at Anita Mendiratta & Associates. “Encouraging employees to take playtime while travelling for work has now become an important part of policy for employee well-being, retention and reward.”

Vision 2030, the bold blueprint to open up Saudi Arabia by diversifying its economy away from reliance on oil, epitomises how serious investment can drive a nation’s hospitality and tourism ambitions. A cornerstone of Vision 2030 is to elevate the tourism sector’s contribution to the national GDP from 3 per cent to 10 per cent — and in the process create a million more jobs to the sector by 2030. The goal is to attract 100mn visitors annually by the end of the decade.

Saudi Arabia has had a low profile as a tourism destination, and has a degree of catching up to do. Its government has allocated a fund of up to a trillion dollars to invest in the sector and, in 2019, it began a process of simplifying entry requirements with electronic visas for people from eligible countries visiting for more than solely business or religious reasons. It has also vowed to develop both infrastructure and labour market to service tourists.

Undiscovered wonders

Since Saudi Arabia has been terra incognita for travellers and tourists, few can be aware that the Kingdom is home to six Unesco World Heritage sites. Among the attractions certain to catch the eye of cultured travellers is the region of Al-Ula. Virtually unknown to the rest of the world, Al-Ula lies at the crossroads of ancient trading routes and offers up a wealth of extraordinary sights: elaborate tombs carved into red sandstone cliffs, vast palm tree oases, and awe-inspiring landscapes comparable with the better-known Petra in Jordan.

Described as an “undiscovered archaeological wonder”, Al-Ula even includes a multi-purpose concert and entertainment venue, called Maraya. The biggest mirrored building in the world, Maraya reflects its desert surroundings with mesmerising clarity. Understandably, Condé Nast Traveller selected Al-Ula as one of its Seven Wonders of the World for 2023.

With strategic investments in high-end tourism and the adoption of innovative trends like bleisure, the Kingdom is betting that its unique heritage, ancient history, cultural diversity and natural wonders will be the magnet for a wave of inquisitive visitors and an example for the rest of the global hospitality and tourism industry. “It's remarkable to see how the Kingdom is managing to strike a balance between tradition and modernity,” says Lama Almofadhi, Architect, GIGA Project Development, Public Investment Fund Projects. “This is not just about building hotels and resorts; it is about creating a holistic and vibrant ecosystem that honours Saudi Arabia’s rich history and culture.”

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