Saudi Arabia's Tourism Growth Continues Despite Alcohol Ban, Says Developer

Saudi Arabia had long been exclusively a religious destination, only beginning to issue tourist visas in 2019.

A luxury developer central to Saudi Arabia's economic diversification strategy emphasized on Tuesday that the kingdom's prohibition on alcohol would not impede tourism growth.

"Alcohol is not permitted in the kingdom. It's as simple as that," John Pagano stated to AFP during an interview at the Future Investment Initiative (FII), a major conference in Riyadh designed to attract foreign investment.

"People want to be healthier. They come for the experiences. Alcohol would be nice to have, but it's not essential for the destination to succeed," Pagano explained.

As the birthplace of Islam and home to two of its holiest sites, Saudi Arabia had historically been solely a religious destination until it began issuing tourist visas in 2019.

Since Crown Prince Mohammed bin Salman's rise to power as de facto ruler, the country has undergone significant liberalization in alignment with Vision 2030, a plan aimed at economic diversification and attracting international tourists and businesses.

Despite these changes, the alcohol ban remains in effect, a restriction common in many Muslim-majority nations.

In January 2024, the kingdom opened its first liquor store, exclusively serving non-Muslim diplomats.

Alcohol consumption remains prohibited for everyone else. Saudi Ambassador to the UK Khalid bin Bandar bin Sultan al Saud confirmed to British broadcaster LBC in February that alcohol will not be permitted during the 2034 World Cup.

"More than half of our guests are international arrivals - something I expected later, but it's happening much sooner," Pagano revealed to AFP.

The kingdom has invested billions into mega-projects focused on entertainment, tourism, sports, and artificial intelligence.

"The Public Investment Fund has committed $800 billion to tourism between now and 2030. The country is getting ready - the Expo will be the appetiser and the World Cup the main course," he added, referencing the 2030 World Expo and 2034 World Cup, both scheduled to be hosted by Saudi Arabia.

Red Sea Global plans to establish 27 hotels and resorts on Saudi Arabia's western coast, with ten already operational.

"By the middle of next year, all 27 hotels and resorts will be fully open," he stated, noting his strategy to attract revenue from pilgrims performing the annual Hajj to Mecca, located just hours from the Red Sea.

"Pilgrims come once in their lifetime. They come to Saudi Arabia for Hajj, and we plan to tap into that market," Pagano concluded.