The Impact of Implementing Development Policies for Saudi Hotels and Lodging Industry on Rating and Customer Satisfaction: Challenge, Critical Success Factors, And Opportunities

Abstract

This study investigates how Saudi Arabia’s Vision 2030 diversification agenda translates into measurable performance gains across the Kingdom’s upscale hotel sector. A crosssectional survey was distributed to managers and frontline staff in 4- and 5-star properties in Riyadh, Jeddah, Makkah–Madinah, and the Eastern Province. Using a rigorously validated instrument (Cronbach’s α = 0.957), 312 usable responses were analysed with Pearson correlations and hierarchical linear regressions. Results show that the intensity of Vision-aligned policy implementation correlates strongly and positively with overall hotel ratings (r = 0.776) and customer satisfaction (r = 0.751) at the 0.01 significance level. Regression models confirm that Vision-driven initiatives explain 60 % of the variance in hotel ratings (R² = 0.60; β = 0.659, p < .001) and 56 % of the variance in customer satisfaction (R² = 0.56; β = 0.645, p < .001). Qualitative follow-ups identify staff upskilling programmes, green-retrofit incentives, and AI-enabled guest-service apps as the most influential levers linking national policy to firm-level outcomes. These findings provide the first empirical evidence that Saudi Arabia’s macro-level diversification strategy can be converted into micro-level performance improvements, offering hotel operators and policy-makers a clear roadmap for leveraging Vision 2030 to enhance competitiveness, guest loyalty, and revenue growth.