• 11/13/2020 12:15 PM
  • João

Saudi Arabia’s flagship tourism project aims to build 16 new hotels in its mega-resort on the Red Sea by the end of 2023

Despite the pandemic, the tourism business is preparing for a V-shaped recovery, and Saudi Arabia is aiming to take advantage of it by building a huge new resort on the Red Sea!

Saudi Arabia’s flagship tourism project – The Red Sea Development Co (TRSDC) – plans to build 16 hotels by the end of 2023 at a new resort on the Red Sea, two more than the previously announced.

The multimillion-dollar project, owned by the Sovereign Wealth Fund of Saudi Arabia and backed by Crown Prince Mohammed bin Salman, involves the construction of a luxury resort on 50 islands on the coral coast of the Red Sea. There, tourists will be able to go diving, visit the nature reserve and heritage sites.

It is expected that at the first stage the resort will serve 300 thousand tourists a year.

As soon as the restrictions are lifted, there will be a large delayed demand for travel and travel, – said CEO John Pagano

TRSDC plans to obtain a 15-year loan from banks worth 14 billion riyals (3.16 billion Euro) by the end of the year to partially finance its capital expenditures of 30 billion riyal (6.76 billion Euros) by 2023 with the remaining coming directly from the State Investment Fund.

Saudi Arabia wants tourism to provide 10% of its gross domestic product by 2030 as part of a strategy to diversify its economy.

However, it is unlikely that the new project will be a significant competition for other countries in the area. John Pagano cleared that the project it’s not aimed at serving the “mass market”.

Even with full construction by 2030, we will have no more than 800,000 – 1 million visitors a year

Main photo: The Red Sea Development Company
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