Saudi Arabia is aiming to attract more tourists and is considering how luxury fits into this plan. While there are mega projects like The Line and Neom garnering attention, the focus on luxury hotels only makes up 20% of the country’s tourism. There is a white space for innovative boutique hospitality that appeals to a global audience while incorporating unique Saudi/Middle Eastern elements. The country needs a new generation of hospitality entrepreneurs to create something akin to early Morgans Hotel Group or Bunkhouse.
The problem lies in the current abundance of capital in Saudi Arabia, which could hinder the development of smaller, more unique boutique hotels that travelers are seeking. The focus on opulence and size may overlook the demand for intimate, handmade appeal. While the Saudi Public Investment Fund is involved in mega deals, there is a need for space for private sector entrepreneurs and innovators to build new projects. A moonshot project could provide opportunities for young Saudi visionaries to showcase their talent on a global stage.
One promising example is Diriyah Gate, a development that focuses on modernizing and contextualizing history and culture rather than futuristic luxury. This project could serve as a model for future creative hospitality ventures by maintaining a unique perspective and creative taste. The creative hospitality imperative should be central to Saudi development discussions, ensuring that the country’s unique identity is not lost amid Western investments. By nurturing homegrown talent and fostering innovative ideas, Saudi Arabia can create authentic, resonant experiences for tourists.
To truly succeed in tourism, Saudi Arabia needs to cater to a wide range of people and price points, not just luxury travelers. There is an opportunity for the country to create its own version of globally renowned boutique hotel brands that combine global appeal with authentic local elements. The presence of creatives, artists, and designers in the Middle East highlights the potential for new, interesting boutique brands to emerge in Saudi Arabia. By encouraging the development of unique, culturally relevant hospitality projects, the country can differentiate itself in the competitive global tourism market.
The focus on large-scale, luxurious projects in Saudi Arabia may overshadow the potential for smaller, more intimate hospitality ventures that cater to a diverse array of travelers. While it is important to attract attention from international investors, there is also a need to prioritize local talent and creative visionaries. By supporting early-stage entrepreneurs and innovative projects, Saudi Arabia can build a tourism industry that resonates with visitors on a deeper level. Embracing nuance and authenticity in hospitality development will help the country stand out as a compelling destination for travelers seeking unique, meaningful experiences.
