Saudi Arabia taps AI and immersive tech to drive tourism growth

Arab News

a day ago

Saudi Arabia is ramping up the adoption of smart technologies such as artificial intelligence, augmented reality, and virtual reality across its tourism sector, aiming to redefine the visitor experience and support its broader economic diversification agenda.
Experts say the integration of these technologies across flagship projects like Neom and the Red Sea Project is positioning the Kingdom as a global tourism hub at a time when the industry is recovering from the pandemic and projected to reach $11.7 trillion in economic contribution by 2025.
As part of Vision 2030, the Kingdom is positioning tourism as a key non-oil growth engine. Its National Tourism Strategy targets 150 million annual visitors by 2030 and aims to raise the sector's contribution to gross domestic product from 3 percent to 10 percent.
Speaking to Arab News, Nicholas Nahas, partner and tourism & hospitality global competence center lead at Arthur D. Little, said Saudi Arabia is intelligently integrating smart technologies into its tourist destinations, helping the Kingdom emerge as one of the most sought-after tourism hubs.
'In Saudi Arabia, smart tourism, while not always explicitly referenced or promoted as such across its portfolio of tourism developments, is subtly being integrated as a strategic enabler of the country's broader economic shift to diversifying its economy,' said Nahas.
He added: 'It includes artificial intelligence for personalized trip planning, biometric systems to streamline travel and immigration, IoT-enabled controls in accommodations, and AR/VR to create immersive storytelling at cultural and entertainment sites.'
Nahas further said that smart technologies are being planned as enablers to manage growth, enhance quality, and differentiate the visitor experience.
Smart tourism refers to the use of advanced digital technologies across the tourism value chain to enhance visitor experiences, improve operations, and support sustainable destination management.
The concept also aligns with the idea of a Smart Destination — a location that leverages technology and innovation to create more immersive and sustainable experiences.
Julio De Salvo, Globant's chief solution officer for the Middle East and North Africa and the Asia Pacific region, echoed similar views. He said Saudi Arabia is well-positioned to become a global tourism hub, and this journey could be further accelerated by adopting smart technologies across the sector.
Salvo added that some of the key drivers of smart tourism in the Kingdom include massive investments in smart infrastructure — such as AI-enhanced airports and digital visa platforms — a young, tech-savvy population, and a strong commitment to sustainability through regenerative models that prioritize environmental and cultural preservation.
The Globant executive also commented on the global post-pandemic recovery of the tourism sector and said the industry is accelerating toward a projected $11.7 trillion in economic contribution by the end of 2025.
'Saudi Arabia isn't riding the wave of global tourism recovery; it's creating its own momentum, using smart tourism as a catalyst for economic diversification, innovation leadership, and long-term global relevance,' said Salvo.
Creating personalized experience
Salvo told Arab News that the tourism industry is witnessing a rapid shift, where digital tourism is slowly giving way to cognitive tourism — with advanced technologies used to deliver personalized services to travelers.
'In Saudi Arabia, it's no longer just about online bookings or mobile apps — it's about intelligent systems that understand, anticipate, and adapt to travelers' behavior in real-time,' said Salvo.
A recent study by global consumer insights provider Toluna echoed this trend, noting that Saudi travelers are increasingly relying on smart technologies, with 87 percent using generative artificial intelligence tools like ChatGPT and Gemini to plan and manage their vacations.
As part of Vision 2030, the Kingdom is positioning tourism as a key non-oil growth engine. Its National Tourism Strategy targets 150 million annual visitors by 2030 and aims to raise the sector's contribution to gross domestic product from 3 percent to 10 percent.
The report further found that 46 percent of Saudi travelers use AI assistants to discover activities, while 31 percent rely on these tools to optimize their itineraries.
Nahas said destinations powered by smart technologies are delivering more personalized, seamless, and immersive experiences — supporting higher satisfaction levels and encouraging repeat visitation.
The Arthur D. Little official added that these technologies will also enable more sustainable operations, from energy use in hotels to mobility and waste systems in major destinations.
'Importantly, the Kingdom's flagship tourism projects — such as Neom, the Red Sea Project, Diriyah, Qiddiya, and New Murabba — are integrating smart systems as a core component of how tourism experiences are crafted, delivered, and continuously improved,' said Nahas.
Neom aims to elevate the visitor experience through AI-led personalization and immersive digital engagement.
The Red Sea Project similarly integrates smart infrastructure to enable seamless and sustainable guest experiences. The destination is deploying IoT sensors to monitor environmental indicators, utilities, and operational systems across its resorts and natural assets.
Diriyah, while rooted in heritage, is incorporating digital heritage documentation and exploring interactive technologies to enhance cultural storytelling — aligning with broader trends in cultural tourism that use immersive tools to enrich historical engagement and visitor education.
Nahas added: 'These systems could be equally used to monitor visitor needs, respond to requests, and elevate the visitor experience.'
'Plans also include autonomous electric vehicles, smart utility management, and a centralized digital platform that will allow guests to access accommodation, transportation, and experience bookings.'
Salvo also emphasized the transformative role of data and AI. 'By integrating real-time data — from IoT sensors to traveler preferences and even biometric signals — we can deliver experiences that are not just personalized, but truly responsive,' said the Globant official.
He added: 'This is how data becomes experience — and how destinations become intelligent, dynamic environments that adapt in real time. It's a win-win: travelers feel seen, and operators gain the insight and agility to manage resources, reduce friction, and elevate every journey.'
Nahas said AI is also becoming increasingly prominent in trip planning and customer service, with chatbots offering timely support and tools generating personalized itineraries.
According to the Arthur D. Little executive, service robots using AI could be deployed in budget accommodations to handle routine tasks such as cleaning and food delivery, boosting both efficiency and consistency.
'On the infrastructure side, IoT, cloud, and AI systems are being integrated into facilities to monitor and control environmental conditions in real time. This supports sustainability goals by optimizing resource use and maintaining comfort standards, particularly in large-scale developments,' said Nahas.
Potential challenges
Amid these promising developments, experts also highlighted challenges facing Saudi Arabia in implementing advanced technologies in its tourism sector — including localization gaps.
'Many of the most advanced solutions in areas such as AI, AR/VR, and IoT are currently developed outside the Kingdom. As Saudi Arabia integrates these tools into its tourism offering, collaboration with international partners will be important, alongside efforts to build local capabilities over time,' said Nahas.
Highlighting the importance of regulation, the Arthur D. Little executive added that clear guidelines around data governance, cybersecurity, and system standards will be essential to support consistent implementation and long-term alignment with national priorities.
Salvo shared similar concerns, emphasizing the need for talent development to support the growing smart tourism ecosystem. He said this requires upskilling programs and international partnerships to close expertise gaps.
'Major tech infrastructure, including nationwide 5G networks, smart airports, and cloud systems, is still rolling out, with delays in full deployment potentially hindering real-time applications like personalized AI tours and immersive experiences in mega-projects like The Red Sea and Neom,' added the Globant official.
Despite these challenges, experts told Arab News that smart tourism can grow into a well-integrated part of Saudi Arabia's tourism strategy — provided there is the right coordination and policy framework.
'The pieces are steadily coming into place — with emerging tech adoption readiness jumping to nearly 75 percent in 2025 — and paint a bright future where smart tourism not only overcomes these obstacles but propels Saudi Arabia to lead in innovative, regenerative travel,' concluded Salvo.