Vision 2030 and the evolution of Saudi Arabia’s hospitality sector  

In 2023, the Kingdom’s travel industry not only met but exceeded expectations, experiencing a staggering 58 percent growth in passenger arrivals. This prompted a substantial recalibration of its Vision 2030 ambitions. Shutterstock
Short Url
Updated 28 April 2024
Follow

Vision 2030 and the evolution of Saudi Arabia’s hospitality sector  

RIYADH: As Saudi Arabia embarks on its ambitious journey outlined in Vision 2030, the hospitality industry emerges as a pivotal player in the Kingdom’s economic diversification efforts.  

The sector continues to evolve, with a focus on attracting international visitors and enhancing domestic tourism experiences. 

In 2023, the Kingdom’s travel industry not only met but exceeded expectations, experiencing a staggering 58 percent growth in passenger arrivals. This prompted a substantial recalibration of its Vision 2030 ambitions. 

Last year, Saudi Arabia increased its annual tourism target to 150 million visitors by 2030 after surpassing the original goal of 100 million, seven years ahead of schedule. This achievement was attributed to the country’s ongoing investment in infrastructure, tourism transformation, hospitality, and real estate, aligned with its vision objectives. 

Through capital allocation in the tourism framework, promotion of cultural heritage, and encouragement of innovation in the hospitality sector, the nation aims to unleash the Kingdom’s tourism potential and establish the region as a premier global destination. 

Since Saudi Arabia opened its doors to non-religious tourists for the first time in 2019, the service and accommodation industry has been infused with new life. 

With the announcement of a variety of hotels, resorts, and tourist attractions, the sector is positioning itself to meet the growing demand. 

To achieve this, the Kingdom aims to increase its hotel room inventory by 315,000, projecting a development expenditure of around $37.8 billion by 2030. This expansion will bring the overall inventory to nearly 450,000 rooms. 

David Vely, the vice president of development for the Middle East and Africa at Club Med, emphasized that experts in the field have witnessed firsthand Saudi Arabia’s ongoing efforts and investments to fulfill the criteria needed to meet its destination development and tourism targets. 

He said: “Firstly, world-class infrastructure, including international airports and an advanced highway network, is crucial to facilitate tourist travel. Secondly, a variety of tourist attractions — from historical sites and beautiful beaches to modern entertainment centers — are needed to attract visitors. Thirdly, quality service and memorable experiences, coupled with professional and warm hospitality, are essential to retain tourists and foster positive word-of-mouth.” 

Vely added: “We have observed Saudi Arabia’s ongoing efforts and investments to successfully fulfill these three criteria and are confident in its ability to achieve — and surpass — the ambitious goals of Vision 2030.”   

Alongside investments in tourism infrastructure, which encompass transportation networks, airports, roads, and recreational amenities, initiatives such as NEOM, the Red Sea Project, and Qiddiya are expected to further bolster the nation’s hospitality sector. 

In September, NEOM’s mountains destination, Trojena, revealed plans to host two Marriott hotels — a JW and a W. These establishments are among the numerous international inns set to open at the artificial ski retreat, which is slated to host the Asian Winter Games in 2029. The resort is scheduled to welcome visitors and new residents in late 2026. 

Meanwhile, Red Sea Global, the visionary developer wholly owned by Saudi Arabia’s Public Investment Fund, boasts a portfolio that includes two world-leading destinations announced by Crown Prince Mohammad bin Salman: The Red Sea and AMAALA. 

Collectively, these developments aim to enhance Saudi Arabia’s luxury tourism and hospitality sustainability offerings, with a focus on protecting the natural environment and enhancing it for future generations. 

Emphasizing the importance of environmental awareness in the hospitality sector, Shahbaz Tufail, the executive vice president of DAR Engineering, noted that it is “crucial” to incorporate sustainability into new undertakings. 

“The ongoing development of new entertainment options, as well as aligning value and service propositions to the international travel palette, clearly demonstrates the intent of Vision 2030. To appeal to a broader audience, providers must align with global hospitality and travel trends such as ecotourism, wellness, smart hotels and sustainability,” he said.  

As a cornerstone of the sector’s development, both Vely and Tufail further stressed the importance of training and education in attracting and retaining talent within the hospitality field. 

In order for this to happen, the industry needs to offer competitive compensation and benefits packages to attract skilled professionals into hospitality, and invest in training programs to develop new talent and up-skill existing team members, as noted by Ramine Benham, vice president of development at Minor Hotel EMEA. 

“Collaboration with educational institutions to offer internships and graduate training programs, as well as vocational training programs can also help in providing a pipeline of future talent. By implementing these measures, the hospitality industry will be able to ensure that they employ the best talent and furthermore retain these loyal individual,” he added.  

The nation has already begun to take strides in this direction, with the announcement of multiple programs and initiatives.  

In September of last year, the country’s Minister of Tourism, Ahmed Al-Khateeb, declared the opening of the Riyadh School for Tourism and Hospitality during the 2023 UN Tourism “World Tourism Day” celebrations in Riyadh. 

Inaugurating the launch, Al-Khateeb said: “This school is a gift from the Kingdom of Saudi Arabia to the world because it will be open to everyone to enjoy the best training in tourism and hospitality.”  

This initiative aims to revolutionize industry education by attracting the brightest minds and leveraging cutting-edge technologies in an innovative facility.  

Similarly, in April, a partnership was announced between the Kingdom’s Ministry of Tourism and UN Tourism for the launch of a six-month training program tailored for institutions in Saudi Arabia specializing in the sector. 

TedQual, a certification system designed by the body to evaluate a series of universally applicable criteria, will help further enhance the quality and training of relevant organizations in Saudi Arabia. 

The UN-backed tourism education scheme is poised to elevate the training of Saudi workers, enabling them to deliver the best international standards in the Kingdom. 

As the nation gears up to host Expo 2030 in its capital, talent retention becomes imperative to meet the anticipated surge in hotel occupancy rates, with both international and domestic travelers seeking accommodation during the bustling period. 

Furthermore, the forum represents a transformative opportunity for Saudi Arabia’s hospitality sector, driving growth and investment.  

“Investors are drawn to opportunities in hotel development and resort projects due to the sector’s potential for substantial returns on investment,” Vely said.  

“Moreover, a thriving hospitality industry enhances the country’s overall attractiveness as an investment destination, strengthening confidence among foreign investors and contributing to the country’s economic growth and diversification efforts,” he added.  

To support the sector’s growth, investment, and attractiveness, Riyadh is poised to host the Future Hospitality Summit, which will focus on the future of successful hotel and destination development in the Kingdom as part of the event’s agenda. 

The forum, scheduled to take place from April 29 to May 1, will discuss key factors affecting tourism development and explore strategies for overcoming potential challenges to ensure government targets are met. 


The hidden side of clean power: why grid integration matters

Updated 58 min 40 sec ago
Follow

The hidden side of clean power: why grid integration matters

  • Exploring the predator’s role in the region’s heritage and ecosystem

RIYADH: As Saudi Arabia expands solar, wind, and battery projects, a critical piece of the sustainability puzzle often goes unseen: grid integration.

Before renewable plants can deliver power, engineers must ensure the grid remains stable, safe, and efficient under new loads. Integrating renewables into existing systems has become one of the toughest — and most crucial — steps toward building a truly sustainable energy network.

Engineers widely consider the electricity grid the largest and most complex machine ever built. As more renewable capacity comes online, managing it is becoming as much a data challenge as an energy one.

“A big share of Saudi Arabia’s electricity is generated from renewables and more projects are connected to the grid each year. This shift changes how the electricity grid is managed on a day-to-day basis,” Saeed Al-Zahrani, general manager of data enterprise storage leader NetApp in Saudi Arabia, told Arab News.

“To add context, traditional generation can usually be adjusted in a controlled way. Wind and solar, however, move with conditions such as cloud cover, dust, temperature and wind speed, meaning supply can rise and fall quickly,” he said.

In this environment, grid integration is less about whether enough electricity can be produced and more about whether operators can see and respond to changes across the network fast enough to maintain stability.

Frequency, voltage, congestion, and reserve margins all become more dynamic. Real-time measurements, accurate forecasting, asset status updates, and weather intelligence must come together into a reliable, unified system view.

“From NetApp’s perspective, this is where the data foundation matters most, because the grid can only act confidently when the information behind the decisions is timely, governed, and reliable,” Al-Zahrani said.

Under Vision 2030, Saudi Arabia aims to generate 50 percent of its energy from renewables — an ambitious target that introduces new technical and operational challenges. Weather variability, cyber threats, and system coordination can all affect grid stability.

“Every device that operates under this control regime that’s connected to the grid is digital nowadays. You have smart inverters, you have sensors, you have energy management systems, and all those devices and systems are potential entry points for attackers,” Charalambos Konstantinou, a professor at KAUST, told Arab News.

As solar capacity grows, ensuring seamless integration into the national grid has become one of the most complex challenges of the energy transition. (SPA)

His lab focuses on maintaining reliable and secure power infrastructure, developing faster and smarter control algorithms capable of responding to sudden changes in the power system.

“This is what we’re working to make sure that those algorithms remain robust. They remain resilient. They remain secure, even if something, maybe an extreme weather event, or a cyber attack, is aiming to disrupt them,” he said.

Rapid digitalization, however, can create vulnerabilities if security measures do not keep pace. In 2012, Aramco experienced the Shamoon attack, a computer virus that affected around 30,000 workstations.

“When you scale fast, security practices typically lack behind deployment, and this is essentially what we focus a lot in my group: making sure that internet-connected or digital devices cannot be used as an entry point to destabilizing the grid,” Konstantinou said.

One particularly concerning threat involves load-altering attacks, which can disrupt power systems without requiring deep penetration of the grid itself.

“If an attacker is able to control a large amount of what we call internet connected high voltage devices — think HVAC systems, air conditioning systems, water heaters, electric vehicle chargers — and is able to switch them on and off at the same time, simultaneously, then he or she can create a certain imbalance between generation and demand, and then the grid (becomes) very difficult to handle,” he said.

A view of an Aramco refinery in the Eastern Province. (Supplied)

Such disruptions could potentially trigger widespread blackouts.

Beyond cybersecurity risks, the physical environment also presents challenges. Saudi Arabia’s relatively consistent weather can be an advantage for renewable energy production, but factors such as dust accumulation on solar panels and thermal stress on inverters can still affect performance.

Testing technologies under local conditions — including extreme heat, network behavior, and the mix of generation assets — is essential before large-scale deployment. Equally important are intelligent coordination frameworks that allow flexible energy assets to work together while optimizing energy use across industries.

Renewable-heavy grids across Saudi Arabia and neighboring countries increasingly depend on real-time data from SCADA systems, substation automation, and weather monitoring to balance supply and demand. While these continuous data flows improve efficiency, they also introduce new risks, including potential system disruption and data manipulation.

Vasily Dyagilev, regional director for the Middle East, Russia and CIS at Check Point Software Technologies Ltd., highlighted the scale of these vulnerabilities.

Vasily Dyagilev, regional director of Check Point Software Technologies Ltd. for the Middle East. (Supplied)

“In Saudi Arabia, 58 percent of organizations have experienced information disclosure vulnerabilities, while remote code execution and authentication bypass remain significant threats. The complexity of managing legacy operational technology networks alongside modern cloud-based systems and third-party integrations makes it difficult for utilities to maintain full visibility over their risk landscape.

“The region has also seen high-profile incidents where attacks on SCADA systems led to operational disruptions, highlighting the fragility of critical infrastructure. Effective exposure management, including continuous vulnerability discovery and prioritized remediation based on operational risk, is now recognized as essential for maintaining grid stability and protecting the integrity of real-time data streams.”

Alongside cyber and operational risks, uncertainty in weather patterns remains a key variable in renewable power generation.

Omar Knio, another professor at KAUST, studies how atmospheric processes influence renewable energy systems through uncertainty quantification and climate modeling. Dust particles originating in the Arabian Peninsula, for instance, can travel thousands of kilometers and influence weather patterns across South Asia.

Opinion

This section contains relevant reference points, placed in (Opinion field)

“Phenomena at tiny little scales end up, through teleconnections, making very important contributions to weather patterns and to the climate as far as renewables themselves, because these phenomena affect the solar and wind potentials, they’re extremely important to predict accurately,” Knio said.

“The presence of dust in the atmosphere and cloud cover affect the output of solar panels or solar plants, and similar phenomena happen to wind, and that's why they are really challenging. It's important to be able to predict them as accurately as we can.”

Maintaining a stable renewable grid requires both short-term and long-term forecasting. Hourly predictions are essential for balancing supply and demand, while longer-term projections help planners prepare infrastructure and storage.

Artificial intelligence is increasingly helping researchers build models that forecast weather patterns, simulate thermal behavior in buildings, and analyze industrial energy use. In areas where detailed physical models are limited, AI also helps uncover patterns in human behavior and electricity consumption.

“An example is power demand, consumer behavior, or changes in patterns that have to do with the day of the week, whether it's a weekend, a holiday season, whether it's during harsh weather, or it's during Ramadan: how do these patterns change? And artificial intelligence is really bringing the capability for us to represent and forecast these very complex phenomena,” Knio said.

As renewable energy penetration approaches higher levels, the system becomes more sensitive to fluctuations and extreme events.

“There comes a point where we start having a very dramatic rise in the need for storage capabilities. And the important aspect of why our fuel is important. We can make them cleaner, but they’re wonderful in the sense that they are plentiful right now. They are cheap, but more importantly, they are quite economical to store after. After fuels come nuclear power. So it’s really that storage capability. As we approach 100 percent, the need for storage becomes extremely heightened,” Knio said.