Life After Oil: Will Saudi Follow Dubai's Tourism Example?
As Saudi Arabia seeks to reduce its dependence on oil and diversify its economy, the Kingdom is taking some pretty big strides in the field of sustainable tourism.
The recently opened Shebara resort, situated on the Red Sea coast, could be an indicator of a new direction for the Saudi economy, one that their neighbours in the UAE have been taking for some time now.
The state-of-the-art facilities at the resort put a big focus on sustainability and could prove to be an interesting test case for self-sustaining, eco-friendly holiday destinations in Saudi, as the nation's leaders look to plan for life after oil.
The history of ecotourism
The concept of ecotourism has roots that date back to the early 20th century, with initiatives like the Sierra Club's Outing program, launched in 1901, promoting appreciation for natural areas.
However, the term "ecotourism" emerged in the 1960s and 1970s alongside rising environmental awareness and mass tourism. Mexican architect Héctor Ceballos-Lascuráin is credited with coining the term in the early 1980s, defining it as travel to undisturbed areas to enjoy natural beauty and culture.
The International Ecotourism Society (TIES) was founded in 1990, formalising the definition of ecotourism as "responsible travel to natural areas that conserves the environment and improves the wellbeing of local populations." Since then, ecotourism has become a significant sector within the tourism industry, recognised as a means for sustainable development and conservation.
But could the Shebara resort really be classified as an ecotourism destination?
Shebara's ecotourism credentials
Saudi's new Shebara resort could potentially be classified as an ecotourism destination, though it falls more fittingly into the category of 'sustainable luxury tourism', rather than traditional ecotourism.
The resort's architecture, designed by Killa Design, aims to integrate the resort with the surrounding landscape. Its 73 villas, both overwater and beachfront, feature minimalist designs, meant to complement the natural beauty of the location.
A great deal of that natural beauty is within the Red Sea itself. The resort's proximity to a vibrant coral reef (just 30-40 metres away) allows guests to explore the underwater ecosystem with exclusive diving and snorkelling experiences.
Killa's design was carried out with the preservation and enhancement of biodiversity in mind, involving some painstaking marine spatial planning surveys that ensure the aquatic life is protected.
There are also some softer sustainability initiatives in place at Shebara, such as opportunities and experiences where guests can learn about self-sustained human development.
Sustainability and self-sufficiency
Most strikingly, the resort is fully powered by an on-site solar farm, meaning that it isn't reliant on conventional energy sources, like the oil that Saudi is so famous for.
To reduce its environmental footprint, the accommodation spaces are cantilevered above coral reefs which is meant to minimise ground impact.
The resort also employs some integrated utilities and resource-efficient practices, including a solar-powered desalination plant for fresh water production and on-site waste recycling facilities.
The end result is meant to increase the destination's self-sufficiency, though it is unlikely ever to be fully independent.
Rebranding a nation
The development of destinations like Shebara could be a pretty key part of Saudi Arabia's strategy to thrive after oil ceases to be a widely traded asset.
The Kingdom's own leadership have acknowledged Saudi's "oil addiction", so the wheels are in motion to become a more sustainable economy.
Saudi's Vision 2030 plan outlines a roadmap for reducing the country's dependence on fossil fuels, with a focus on renewable energy, green industries and eco-tourism. This shift is not only environmental but also economic, as Saudi Arabia aims to reduce its vulnerability to oil price fluctuations.
Shebara's designer, Killa Design, says that the resort "will attract visitors from around the globe and rebrand Saudi Arabia as a top tier marine eco-tourism destination."
Are other Gulf states following Dubai's example?
By the looks of things, other Gulf states are starting to consider emulating Dubai's diversification model, where fossil fuels now account for only about 5% of its income. The majority of Dubai's revenue comes from tourism, wealthy migrants and investors.
Oman, for instance, has set ambitious goals to reduce its reliance on fossil fuels. Oil made up 39% of its GDP in 2017, but the country plans to reduce this to 8.4% by 2040, focusing on tourism, logistics and manufacturing.
Red Sea Global, the group behind the Shebara development, don't want to be followers, though. The group's goal is to become market leaders in sustainable tourism; an example which other countries can aspire to.
Group CEO, John Pagano, says: “The work of our team across renewable energy, land and marine conservation and regeneration, social development and clean mobility is proof tourism development can be done another way.
“My hope is that the rest of the industry draws inspiration from our achievements and embeds regenerative principles into their own work.”
Challenges and opportunities: The road ahead for Saudi
Despite the progress, Saudi Arabia faces challenges in its transition. Jon Truby, a law professor at the UK's Newcastle University, points out the paradox: "They are in a paradox because they're depending upon the oil revenues, but they're also at great risk of climate change in their own countries".
However, the Kingdom is making significant investments to overcome these challenges. Saudi Arabia plans to invest US$1tn across six strategic sectors by 2030, with 73% allocated to non-oil sectors.
A substantial portion of that - US$235bn, to be exact - will be directed towards clean energy, aiming to scale up renewable energy capacity to 100-130 GW of solar power by 2030.
Mohammad Al-Saidi, a research associate professor at Qatar University's Center for Sustainable Development, emphasises the importance of this shift: "This is very important for image, and image means money".
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