Alcohol Not Key to Success, Says Red Sea Global

Focus on Luxury and Repeat Visits

Saudi Arabia’s Red Sea holiday resorts are proving that high-end luxury tourism can thrive without the need to introduce alcohol, according to an executive from Red Sea Global (RSG). The company, which is backed by the Public Investment Fund (PIF), has been making significant progress in developing its luxury destinations. RSG was launched in 2017 and opened its first hotel at the Red Sea Project in November 2023. Amaala, its second resort project, followed in 2024, and it was recently announced that Shura Island will begin welcoming guests later this year.

By 2030, Red Sea Global aims to have 8,000 hotel rooms and 1,000 residential properties, with a workforce of 120,000 employees. The company hopes to welcome 1.5 million guests by that time. However, the head of development for the giga-project, Stephen Cheesebrough, emphasized that the success of these resorts does not depend on serving alcohol, which remains banned under Saudi law.

In May, Saudi authorities confirmed that there are no plans to lift the 73-year-old ban on serving alcohol, even in select tourist destinations. This aligns with statements made by Stephen Cheesebrough, who pointed to strong repeat visitation as evidence that the current legislation is sufficient to attract luxury travelers.

“We see huge success and great reviews of the destination without alcohol,” he said. “It isn’t a priority for us.”

This sentiment echoes comments from Ahmed Al-Khateeb, the kingdom’s minister for tourism, who previously stated that Saudi Arabia had no plans to offer alcoholic beverages at its holiday resorts. He highlighted research conducted in over 25 countries, showing that 40 to 50 percent of travelers would still choose destinations that do not serve alcohol.

Changing Attitudes Toward Alcohol

The approach taken by Red Sea Global also reflects broader changes in attitudes toward alcohol in Western countries. In the United States, for example, alcohol consumption among adults has dropped to 54 percent, down from 62 percent in 2023—the lowest level since records began in 1939, according to a Gallup survey. Additionally, 53 percent of respondents believe drinking alcohol in moderation is bad for one’s health, up from 28 percent in 2018.

Similar trends have been observed in Europe, where alcohol consumption levels have declined since 2011, according to research by the OECD. These shifts suggest that the demand for non-alcoholic luxury experiences is growing, reinforcing the viability of Saudi Arabia’s approach.

Regional Tourism and Air Connectivity

Despite being marketed as global destinations, most visitors to Red Sea Global’s resorts still come from Saudi Arabia and other Gulf countries. Cheesebrough attributed this to limited air connectivity, which has restricted the volume of tourists coming into the region.

“Airlift, of course. It’s chicken and egg,” he said. “You don’t want all the flights coming in if you haven’t got enough hotel inventory.”

The Red Sea International Airport, which opened in 2023, has gradually increased its connections. Starting October 21 this year, it will receive Qatar Airways flights from Doha three days a week. The airport aims to handle 1 million passengers annually by 2030, but currently only receives between one and three inbound flights per day.

Cheesebrough expressed confidence in the current occupancy levels, stating that his focus is on the guest experience, reviews, and repeat visits rather than short-term occupancy rates.

Long-Term Vision and Growth

Red Sea Global continues to expand its offerings, with plans to launch new islands and increase the number of available accommodations. Despite challenges related to air connectivity and initial investment constraints, the company remains focused on delivering a premium experience that resonates with international travelers.

As the Red Sea Project moves forward, the emphasis on luxury, sustainability, and cultural authenticity appears to be paying off. With strong repeat visits and a growing reputation as a top-tier destination, the resorts are well-positioned to meet their long-term goals without compromising their unique identity.