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Peering into Tourism in Saudi Arabia and Italy

BY Jose Ramon Ortega Jr

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17 January 2025

Peering into Tourism in Saudi Arabia and Italy

In February 2024, Italian officials participated in the INDEX 2024 in Riyadh—Saudi Arabia’s Interior Design and Furniture Exhibition, showcasing hundreds of international exhibitors, including dozens of Italian designers, architects, and suppliers engaged in the Saudi market. Parallel to the exhibition, meetings between Saudi and Italian representatives highlighted a shared ambition to strengthen collaboration in key sectors such as high-tech, fashion, design, and the automotive industry. To a certain extent, the two share a similar vision in terms of the future.1 But what does that future look like?

In April 2016, Crown Prince Mohammed bin Salman, launched Vision 2030, a transformative initiative designed to diversify the Kingdom’s economic leverage, expanding beyond its reliance on oil exports. Tourism was identified as a cornerstone of this vision, with strategic investments aimed at positioning Saudi Arabia as a global hub for entertainment, culture, and innovation. Italy, however, has an eternal reputation for its tourism industry, leveraging cultural and historical assets that consistently rank it amongst the world’s top destinations with over 65 million international arrivals in 2023 (UNWTO). As the fifth most visited country globally for international arrivals (UNWTO), and second in Europe for overnight stays (Eurostat, 2024), tourism remains vital to Italy’s economy, contributing 13% of GDP in 2023.2  In Saudi Arabia, since the launch of Vision 2030 there has been exponential growth in the country’s ability to attract global visitors. In 2023, the tourism sector contributed 11.5% of Saudi Arabia’s GDP (WTTC) while surpassing its original goal of facilitating 100 million annual tourists by 2030—a milestone reached seven years ahead of schedule—setting a new ambitious target of 150 million instead. This rapid expansion has also been accompanied by significant growth in employment, with the sector supporting 2.7 million jobs by the end of 2024, marking an increase of over 158,000 jobs since 2023 (WTTC). Julia Simpson, President and CEO of the World Travel & Tourism Council, has praised Saudi Arabia’s success as a model of forward-looking policy, blending cultural heritage with innovative tourism initiatives.3 This progress aligns with the country’s broader economic diversification agenda, which includes over €800 billion in planned investments by 2030.

In Italy, recent years have prompted a strategic reevaluation of its tourism sector. Since June 2021, in the midst of COVID-19, Italy reinvigorated its tourism strategy, prioritizing sustainability and innovation under the NextGenerationEU framework.4 These efforts have been amplified by preparations for Jubilee 2025, a religious pilgrimage estimated to draw over 35 million visitors to Rome throughout the calendar year. Heavy investment has gone into infrastructural upgrades in order to prepare for an increased amount of arrivals, serving as a crucial test of its ability to balance landmark preservation with contemporary tourism demands. Such efforts have prompted extensive urban improvements, including upgrades to transport systems, restoration of historic sites, and the development of green spaces, all supported by significant EU and national investments. In 2023, Italy’s renewed focus on tourism accounted for 25% of all new jobs, reflecting the sector’s critical role in the country’s post-pandemic recovery and long-term growth strategy.

Vision 2030 has evidently revolutionised Saudi Arabia’s global attractiveness, strategically positioning it as a key destination for cultural heritage, luxury, and innovation. Through initiatives like streamlined visa policies and the establishment of the Ministry of Tourism in 2020, Saudi Arabia expanded accessibility to international tourists by prioritising the overall experience for visitor. Mega-projects have intertwined sustainability, cutting-edge technology, and historical preservation to create diverse, world-class attractions. NEOM, a €500 billion smart city, is set to generate 380,000 jobs and contribute roughly €48 billion to their GDP by 2030, while The Red Sea Project aims to deliver 8,000 new hotel rooms and attract over a million visitors annually by 2030—while achieving carbon neutrality. Al-Ula, home to the UNESCO World Heritage Site Hegra, is projected to attract two million visitors annually by 2035, boosting local employment and revitalising its cultural heritage.5

A cornerstone of this strategy has been the integration of tourism with culture, sports, and entertainment. The signing of Cristiano Ronaldo in 2023 by Al-Nassr, owned by the Public Investment Fund (PIF), was more than a sporting investment; Ronaldo’s arrival elevated Saudi football to international prominence and drove global interest in the Saudi Pro League, attracting sports enthusiasts and tourists alike. Events such as the Riyadh Season — an annual festival which turns the capital into a cultural and entertainment hub — leverage this visibility, blending modern entertainment with Saudi heritage to draw millions of visitors annually.6 

Italy’s tourism strategy, on the other hand, combines its timeless cultural heritage with modern initiatives, ensuring the sector remains a vital pillar of its economy. A key element to the Italian strategy is dividing regions of the country into specialised sectors for specific touristic interests. Such regions include, but are not limited to, Abruzzo for green-tourism, Lazio for business travel, Emilia-Romagna and Alto Adige for sport. Italy prides itself in its abilities in executing ‘slow-tourism’ practices, a sustainable way of promoting overlooked elements of what every region has to offer. The idea is to relieve pressure and diversify tourism away from Rome, Venice, Florence, and Milan, which are all trying to tackle the issue of overcrowding.

Aligned with slow-tourism is the ‘Tourism 4.0’ project, which prioritises sustainability, smart tourism, and digital transformation.7 Funded under the EU’s NextGenerationEU €800 billion recovery program, this initiative has allocated over €2 billion to projects such as digitising ticketing systems at heritage sites and implementing AI-driven solutions to manage tourist flows. These measures enhance visitor experiences while mitigating overcrowding and environmental degradation, reflecting Italy’s commitment to responsible tourism.8

In addition, Italy has introduced programmes like “I Borghi d’Italia,” which invested €1 billion in preserving small villages and promoting them as ‘hidden-gems.’ This not only diversifies tourist offerings but also supports local economies and cultural preservation. By blending its historical appeal with forward-looking policies, Italy balances tradition with modernity, addressing contemporary challenges and ensuring that tourism contributes to both economic growth and long-term sustainability.

Italy and Saudi Arabia both share a mutual commitment to leveraging tourism for economic opportunity, cultural exchange, and the preservation of national identity. Both nations highlight their religious significance, positioning themselves as spiritual capitals of the world. This shared role in religious tourism underpins their unique appeal to global audiences, with Italy preparing for Jubilee 2025 and Saudi Arabia facilitating a growing influx of Hajj and Umrah pilgrims under Vision 2030.

However, their paths to sustainable tourism diverge significantly. Italy grapples with the challenges of over-tourism, which threatens the preservation of its iconic landmarks. Initiatives like stricter visitor caps and Tourism 4.0 aim to address these issues by integrating technology and sustainability. In contrast, Saudi Arabia focuses on constructing a welcoming infrastructure from scratch, as exemplified by various mega-projects and attractive investments into the entertainment sector. These initiatives display the Kingdom’s willingness to take risks and drive for an innovative future, not just for the world to witness but to experience.

Italy’s efforts to preserve heritage and manage tourism influxes could offer insight for Saudi Arabia’s nascent efforts, while Saudi approaches to innovative development might inspire new strategies for Italy. Together, the two could set a global standard for balancing tradition and modernization in developmental tourism initiatives.

End Notes

1Italian Trade Agency https://www.ice.it/it/news/notizie-dal-mondo/271231

2Rome Business School https://romebusinessschool.com/blog/the-business-of-tourism-in-italy-analysis-and-outlook-by-sector

3World Travel & Tourism Council https://wttc.org/news-article/saudi-arabias-travel-tourism-breaks-all-records

4Next Generation EU https://next-generation-eu.europa.eu/index_en

5Ministry of Tourism https://mt.gov.sa/tic/publications

6“Inside Cristiano Ronaldo’s Move to Saudi Arabia’s Al-Nassr” https://www.nytimes.com/athletic/4077544/2023/01/11/cristiano-ronaldo-saudi-arabia-al-nassr/

7Italia Domani https://www.italiadomani.gov.it/en/il-piano/missioni-pnrr/digitalizzazione-e-innovazione.html

8“Italian Tourist Hotspots Start to Raise Defenses Against Overcrowding” https://www.reuters.com/world/europe/italian-tourist-hotspots-start-raise-defences-against-overcrowding-2024-04-25/