Saudi Arabia leverages AI and immersive tech to boost tourism growth

Smart tourism refers to the use of digital technologies across the tourism value chain to elevate the visitor experience
 

Saudi Arabia embracing cutting-edge technologies to transform tourism sector

Saudi Arabia is embracing cutting-edge technologies such as artificial intelligence (AI), augmented reality (AR), and virtual reality (VR) to transform its tourism sector. The goal is to enhance visitor experiences, streamline operations, and support sustainable destination management, all while contributing to the country’s broader economic diversification under Vision 2030.

With flagship projects like Neom and the Red Sea Project, the Kingdom is positioning itself as a global tourism hub, especially as the industry rebounds post-pandemic and is expected to contribute $11.7 trillion to the global economy by 2025.

 

Aiming for growth and innovation

Tourism is central to Saudi Arabia’s Vision 2030, with the National Tourism Strategy targeting 150 million annual visitors by 2030 and seeking to increase the sector’s contribution to GDP from 3% to 10%. According to Nicholas Nahas, partner and tourism & hospitality lead at Arthur D. Little, Saudi Arabia’s smart tourism initiatives are a key enabler of this growth.

 

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"Smart tourism is subtly integrated into the Kingdom’s tourism developments, acting as a strategic tool to diversify the economy," says Nahas. This includes AI-powered personalized trip planning, biometric systems for smoother immigration, IoT in accommodations, and AR/VR for immersive cultural experiences.

 

What is smart tourism?

Smart tourism refers to the use of digital technologies across the tourism value chain to elevate the visitor experience, improve operational efficiency, and manage destinations sustainably. It aligns with the concept of a "Smart Destination," where technology is harnessed to deliver richer, more immersive, and environmentally sustainable experiences.

Julio De Salvo, Globant’s Chief Solutions Officer for the Middle East, North Africa, and Asia Pacific, highlights how Saudi Arabia is uniquely positioned to become a global leader in smart tourism, thanks to heavy investments in smart infrastructure, such as AI-enhanced airports and digital visa platforms, coupled with a young, tech-savvy population.

 

A personalized travel experience

The tourism sector is shifting from digital tourism (such as online bookings and mobile apps) to "cognitive tourism," where AI anticipates and adapts to traveler preferences in real time. “It’s not just about booking a trip; it’s about creating a dynamic, personalized experience powered by intelligent systems,” says Salvo.

 

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A recent study by Toluna reveals that 87% of Saudi travelers use generative AI tools like ChatGPT and Gemini to plan and manage their vacations. Additionally, 46% rely on AI assistants to discover activities, while 31% use them to optimize their itineraries.

These technologies not only enhance personalization but also contribute to sustainability. From energy-efficient hotels to smart mobility and waste systems, smart tech is helping tourism operations become more eco-friendly.

 

Flagship projects driving change

Saudi Arabia’s most ambitious tourism projects, including Neom, the Red Sea Project, Diriyah, Qiddiya, and New Murabba, are embedding smart technologies at their core. These destinations are using AI, IoT, and AR/VR to create unforgettable, sustainable experiences.

For example, Neom aims to revolutionize visitor interactions with AI-driven personalization and immersive digital engagements. The Red Sea Project is using IoT sensors to monitor environmental data, utilities, and resort operations to ensure sustainability.

Diriyah, with its rich cultural heritage, is incorporating digital heritage documentation and exploring interactive technologies to enhance the storytelling experience for visitors.

“These systems help monitor visitor needs, respond to requests, and optimize the experience,” Nahas says. Plans also include autonomous electric vehicles, smart utility management, and digital platforms for booking accommodations, transportation, and activities.

 

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The role of data and AI

Salvo points out that real-time data is crucial in delivering personalized and responsive experiences. “Data becomes experience, and destinations become dynamic environments that adapt in real time,” he explains. AI and IoT will enable Saudi Arabia to offer not only personalized services but also more agile, efficient operations.

AI chatbots will help with customer service, while service robots could handle tasks like cleaning and food delivery in budget accommodations. On the infrastructure side, AI, IoT, and cloud systems will monitor and optimize resource use in large-scale developments, furthering sustainability goals.

 

Challenges in implementation

Despite the excitement around smart tourism, experts recognize several challenges in implementing these advanced technologies. One key hurdle is the reliance on international technology solutions. "Many of the advanced tools in AI, AR/VR, and IoT are developed outside Saudi Arabia, so collaboration with global partners is essential," says Nahas.

Additionally, there is a need for clear regulations around data governance, cybersecurity, and system standards to ensure consistent and secure implementation of smart tourism technologies. Salvo also notes that the development of critical infrastructure, like 5G networks and smart airports, is still underway, and delays in deployment could slow the rollout of personalized, real-time experiences in major projects.

 

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The path forward

Despite these challenges, experts remain optimistic that smart tourism will become an integral part of Saudi Arabia’s tourism strategy. Salvo concludes, "The pieces are coming together. By 2025, emerging tech adoption readiness is expected to reach nearly 75%, setting the stage for a future where smart tourism not only overcomes these obstacles but propels Saudi Arabia to the forefront of innovative and regenerative travel."

With continued collaboration and investment in infrastructure, skills, and regulatory frameworks, Saudi Arabia’s vision of becoming a global tourism leader is fast becoming a reality.

Source: Arab News

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