THE DEVELOPMENT OF LUXURY TOURISM IN SAUDI ARABIA: OPPORTUNITIES AND CHALLENGES UNDER

Abstract

This study investigates the strategic development of luxury tourism in Saudi Arabia within the framework of Vision 2030, examining its economic, cultural, and sustainability dimensions. Luxury tourism is defined in the Saudi context, highlighting its role as a key pillar of national diversification. A critical review of literature identified emerging trends, opportunities, and theoretical frameworks, including Butler’s Tourism Area Life Cycle (TALC) theory and Porter’s Diamond Model, which provide insights into tourism competitiveness and growth. The research employed a structured quantitative approach, using a self-designed questionnaire to capture stakeholder perceptions, generating 130 valid responses. Variables assessed included investment opportunities, sustainability practices, service quality, and cultural integration. Comparative benchmarking against regional competitors such as Dubai, Qatar, and Abu Dhabi revealed both strengths and gaps in Saudi Arabia’s tourism strategy. The findings demonstrate strong alignment with Vision 2030 goals, particularly in government-led reforms and international positioning, but also highlight barriers such as workforce readiness, cultural integration, and sustainable infrastructure. The study contributes to tourism development scholarship and practice by offering policy recommendations in workforce development, digital branding, sustainability, and cultural experience design, while also identifying areas for future .research