Saudi Arabia's Red Sea Global launches first-owned luxury resort

Saudi Arabia's Red Sea Global launches first-owned luxury resort
Saudi Arabia's Red Sea Global launches first-owned luxury resort / bne IntelliNews
By bne Gulf bureau October 29, 2024

Red Sea Global opened Shebara on October 28, its first owned and operated resort, marking another milestone in Saudi Arabia's expanding luxury tourism sector, Nemnna reported on October 28 citing comments from the group’s director John Pagano.

The development, which features 73 overwater and beachfront villas, was constructed using off-site building techniques to protect the local marine ecosystem, demonstrating the developer's commitment to sustainable tourism practices.

"This is yet another remarkable milestone for Red Sea Global and Saudi tourism," CEO John Pagano said.

"This luxury, truly one-of-a-kind resort embodies our commitment to innovative design and sustainable tourism."

Shebara becomes the fourth resort to open at The Red Sea development, with reservations available for stays beginning in November.

The launch follows NEOM's unveiling of its Sindalah island resort on October 27, which aims to welcome 2,400 visitors daily by 2028, as Saudi Arabia pursues its tourism ambitions under Vision 2030.

Despite all the ceremony and celebrations, tourism numbers to non-religious locations in Saudi remain law.

Meanwhile, religious numbers visiting locations like Mecca and Medina to complete Hajj remain heavily regulated due to growing annual demand and fears of illegal pilgrims causing unnecessary pressure on the holy sites.

Earlier in April, Saudi Arabia is projected to have 320,000 new hotel rooms by 2030 as the Kingdom ramps up efforts to accommodate an annual influx of 150mn tourists, both domestic and international, according to a report by global property consultancy Knight Frank.

This massive expansion of the hospitality sector is central to achieving Saudi Arabia's goal of increasing the travel and tourism industry's contribution to the economy from nearly 6% to 10% by the end of this decade, the report stated.

The holy cities of Mecca and Medina are set for a significant hotel boom, with 221,000 new rooms announced, planned or under construction to cater to religious tourists - expected to reach 30mn annually by 2025 and 50mn by 2030.

Knight Frank estimates around $104bn will be required for construction costs alone to realize the 320,000 new hotel rooms nationwide, with $70bn dedicated to the religious tourism hubs of Mecca and Medina.

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