Saudi Tourism Industry Rethinks Strategy Amid Regional Conflict and Low Oil Prices

The Saudi tourism industry is facing challenges due to regional conflict and low oil prices. The country's economic diversification agenda, outlined in Vision 2030, relies on expanding global travel and strong oil revenues, but these assumptions have been strained in recent months.

Tourism was supposed to be one of the drivers of the economy, supported by large-scale public investment, but lower oil prices have put pressure on public finances. Conflict has exposed vulnerabilities in shipping routes and aviation networks, and security partnerships are being reevaluated across the Gulf.

The Public Investment Fund (PIF) is shifting its strategy to prioritize projects that generate commercial returns, attract private capital, and support national priorities. Tourism is an essential part of this recalibration, with a focus on domestic tourism as a more resilient option.