- There are signs the kingdom is weighing loosening alcohol restrictions to unleash a tourism gold rush
Saudi Arabia
The kingdom’s aspirations to become a prominent international tourism center and a key commercial nexus in the region have raised hopes that it might progressively ease its prohibition on alcohol.
The government cautiously proceeded by permitting
the launch of a drinks shop
In the Al-Sarafat diplomatic district of Riyadh, in February, for non-Muslim embassy personnel.
Next might be the resort developments on islands in the Red Sea, part of Saudi Arabia’s Vision 2030 initiative aimed at diversifying the economy. Analysts suggest that hotels and restaurants there could potentially obtain liquor licenses, following this model.
Egypt
‘s well-known Sharm el-Sheikh and Hurghada resort towns.
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Last month, The St. Regis Red Sea Resort—a key component of a major tourism initiative spearheaded by the government-owned Red Sea Global—hosted a fashion event showcasing swimsuits designed for modesty, marking a significant shift from traditional conservative attire standards in the country. In general, Saudi Arabian women usually opt for loose-fitting black abayas as outer garments; however, these conventions have become more flexible for international tourists visiting the region.
The inclusion of entertainment centers such as Red Sea Global and the Qiddiya project near Riyadh might also feature more progressive facilities to attract international guests while addressing religious sensibilities, according to Saudi political analyst Salman al-Ansari.
“All such modifications will probably be meticulously controlled to guarantee they correspond with Saudi social principles,” he stated in an interview with This Week in Asia.
Formerly an isolated nation permitting entry solely to foreign Muslims undertaking pilgrimage in Mecca and Medina, Saudi Arabia initiated the issuance of tourist visas starting in 2019. Currently, citizens from 63 nations can obtain these visas to stay for up to 90 days.
Since the kingdom initiated significant investments in this area as part of the Vision 2030 plan introduced in 2016, domestic tourism has experienced a remarkable surge.
Between 2020 and 2022, the worth of arts and entertainment activities surged over twofold, whereas expenditures on food and lodging rose by 77 percent, as stated in a Ministry of Economy and Planning report released in March.
This expansion was partly fueled by an increase of international companies and experts entering Riyadh as well as the Red Sea harbor city of Jeddah, attracted by substantial business prospects stemming from the anticipated US$870 billion worth of large-scale projects planned to be completed by 2030.
The most notable development is the proposed futuristic city.
Neom
Along the shores of the Gulf of Aqaba, which borders both Saudi Arabia and Egypt.
Israel
and
Jordan
.
Following the return of routine large-group pilgrimages to Mecca and Medina post-Covid-19, Saudi Arabia reached its objective of hosting 100 million visitors for the previous year. This success has led the authorities to establish a fresh aim of attracting 150 million travelers by 2030.
Expenditure by incoming tourists jumped by 319 percent from 2020 to 2022, as reported by the Ministry of Economy and Planning.
By the end of last year, the tourism industry made up 6 percent of Saudi Arabia’s economy. The government aims to boost this figure to 10 percent by 2030.
The kingdom aims to attract 40 million tourists when it hosts the event.
World Expo in 2030
, while the
2034 football World Cup
is anticipated to occur in Saudi Arabia since it was the only bidder.
Based on forecasts from the international real estate advisory firm Knight Frank, Saudi Arabia aims to construct 320,000 additional hotel rooms by the year 2030. It is anticipated that approximately two-thirds of these new accommodations will have ratings of either four or five stars.
This indicates that between 232,000 and 387,000 crucial tourism employees might require housing as the hospitality industry expands significantly,” Knight Frank stated in their April report.
To reach these significant tourism goals, Saudi Arabia along with its five Gulf Cooperation Council allies announced in May their intention to implement a shared tourist visa program—akin to
Europe
‘Schengen visa – by the end of this year.’
Saudi Arabia received approval for destination status by
China
Last year, they accelerated their efforts to draw in 3 million Chinese visitors by the year 2030.
Although Saudi Arabia has achieved “substantial progress toward social modernization,” according to Al-Ansari, it is improbable that it will completely adopt the policies of its neighboring country.
United Arab Emirates
, which legalized alcohol consumption
in 2020
.
Solidly recognized as a premier international hub for luxury
tourism
In 2027, the UAE will inaugurate the Gulf’s first casino resort.
Saudi Arabia was not anticipated to do so soon because of its “strongly entrenched religious and cultural background,” according to al-Ansari.
He indicated, however, that there were indications of a slow easing of restrictions in some regions, noting that the regulatory structure surrounding the Neom city initiative implied potential for “increased liberalism” designed to draw in global visitors and enterprises.
A study released by The Economist Intelligence Unit in February came to comparable findings, characterizing the launch of Riyadh’s inaugural off-license for alcohol as “a tiny stride” toward providing intoxicating drinks to non-Muslim visitors and foreign residents.
The report predicted “additional easing” of Saudi Arabia’s societal rules as the country advances toward its Vision 2030 goals, mentioning that this could involve loosening regulations around alcohol consumption.
In the end, Saudi Arabia might take a similar approach to the UAE and allow alcoholic drinks to be served for consumption by non-Muslims in hotels and designated eateries, as per the statement.
However, the Saudi government would “proceed with caution,” according to the report, introducing changes that permit the sale and consumption of alcohol in a slow and focused manner.
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