Introduction:

In 2016, Crown Prince Mohammed bin Salman launched Saudi Arabia Vision 2030, which aims to reduce Saudi Arabia's dependence on revenues from the oil sector and diversify the economy. 

This comprehensive plan comprises multiple different approaches to achieve diversification, yet increasing tourism quickly became one of its most prominent and strategic pillars.

In October 2023, Saudi Arabia invested over $800 billion in tourism-related projects across various regions of the kingdom to boost tourism within the kingdom and scale their capacity under Saudi Arabia Vision 2030. In line with their aim for diversification, Saudi Arabia aims to increase its GDP contribution from tourism from 3% in 2019 to 10% by 2030. 

The kingdom selected the southern province of Aseer as the next major tourism site for Saudi Arabia. 

Aseer is a province in the southern part of Saudi Arabia with a population of 2.3 million. Aseer also accounts for 60% of the Saudi Arabian forest cover, and some of the highest mountain peaks of the country are located in the province. This, along with a 125 km coastline, provides Aseer with an average temperature of 10 degrees Celsius, which makes it a great location for a tourism project. The province is also home to the Abha International Airport. 

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Progression of Investment:

In February 2021, the Saudi Arabia Public Investment Fund (PIF) launched a subsidiary called Soudah Investment Company to develop the tallest mountain peaks in Saudi Arabia into luxury destinations. PIF appears to have allocated over $3 billion to Soudah Investment Company for this task. 

The Soudah peaks project, in line with the Saudi Arabia 2030 Vision, aims to contribute $7.7 billion to the kingdom’s GDP with over 2 million projected visitors by 2033. The project comprises “2,700 hospitality keys, 1,336 residential units, and 80,000 square meters of commercial space” and includes “mountain resorts, villas, mansions, entertainment, and outdoor adventure and sports activities” for all types of vacationers. 

In September 2021, Saudi Arabia launched plans to invest nearly $13 billion US dollars to turn the mountain regions of Aseer into annual tourist sites. The strategy was an initiative between the Development Authorities Support Office and the Aseer Development Authority, in cooperation with the Boston Consulting Group, targeting 10 million tourists annually. 

The investment strives to create nearly 18,000 new jobs in the region and targets to contribute nearly 6% of the non-oil GDP in 10 years. These investments are part of the two-pronged “Al-Qimam and Al-Shiam” strategy to boost tourism in Aseer.

In October 2023, PIF launched its third subsidiary in Aseer, ARDARA, to develop the Alwadi project, spread over an area of 2.5 million sq. metres, which aims to contribute around $5 billion to Saudi GDP by 2030. It also includes a motley of waterfront, cultural activities, cycling tracks, luxury apartments, and villas—all necessities in an effort to attract more and more travelers.

In October 2023, Saudi Arabia launched a plan for the expansion of Abha International Airport to accommodate the projected increase in tourist influx. The terminal area is planned to be extended by six times from 10,500 sq. metres to 65,000 sq. metres. The capacity of people is planned to be extended by 9 times from 1.5 million to 13 million. The flight capacity is planned to triple, optimistically projected to reach over 90,000 per year.

In November 2023, the public investment fund of Saudi Arabia launched plans to invest over $354 million in the Aseer region to develop entertainment attractions and projects.

In May 2025, Aseer received an additional $1 billion worth of investment, making the total value of investment in Aseer cross $6.5 billion. Aseer development authorities are trying their best to promote the province as a tourism hub on the international stage. 

From April 28 to May 1, during the Arabian Travel Market taking place at the Dubai World Trade Centre, authorities set up a ‘Discover Aseer’ pavilion to attract and promote the province, targeting more than 9 million visitors annually by 2030, the year of Saudi Vision 2030. 

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Conclusion: 

Saudi Arabia is now growing as a major tourism centre. Domestic tourism has seen a growth of nearly 11% reaching up to 1.4 million tourists, while international tourism has seen a growth of nearly 42% with a visitor count risking to 70,000 yearly.  This increase in the incoming tourists has also led to a rise in tourism-based employment, reaching up to 47,7000 jobs, increasing the tourism-related employment by 2.5%. In recent years, the kingdom, once seen as a closed conservative country, has now opened itself and liberalised in laws. As such, Saudi Arabia is poised to become a major tourist hub in the near future. The diversification will tremendously shift Saudi Arabia's reliance on an oil-based economy and maintain their economy after the inevitable decline of their oil production and revenue.

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