Saudi Arabia's target to hire citizens for half of all the jobs in licensed tourism establishments by 2028 is a “bold” step, but meeting that deadline will be challenging, recruiters say.
The move is aimed at diverting citizens from traditional government jobs and into the vital non-oil industry. But this will require more training and incentives to hit the ambitious goals on time, they say.
The Ministry of Tourism this week announced a policy of “localising activities and registering workers, with the aim of raising the localisation rate to 50 per cent by 2028 in all licensed tourism facilities”, according to its post on X.
This will be implemented in phases, with 40 per cent localisation by April 2026, 45 per cent by January 2027 and 50 per cent by 2028, it said.
The ministry's policy also prohibits the outsourcing of jobs that are eligible for Saudisation to establishments or workers outside the kingdom.
“Saudi has been localising sectors for years and tourism is now the next big push under Vision 2030. The target of 50 per cent Saudisation by 2028 sounds bold, but the real shift is not just policy, it’s the narrative,” said Nevin Lewis, chief executive of Black & Grey HR.
Tourism advertisements and campaigns are challenging stereotypes about the industry and reframing tourism as a career associated with national pride.
chief executive of Black & Grey HR
“That’s critical, because without perception change, this becomes another compliance exercise,” he added.
Reaching the goal of localising half of the jobs in tourism establishments within the next three years will be difficult in the short-term and expats will remain essential for specialised roles for years to come, recruiters say.
“Execution always moves slower than the announcements. In the long term, yes, if training and retention match the ambition, the direction is right. The outcome depends entirely on how well Saudi Arabia builds and executes its talent pipeline,” Mr Lewis said.
Saudi Arabia's tourism mega-projects such as AlUla and Diriyah are already filled with Saudi nationals working as guides, representing their country and explaining its history to international visitors.
Training and incentivising Saudis
Since 2020, the kingdom has created more than 649,000 training opportunities for current and aspiring tourism professionals, the tourism ministry said this week.
Women represent around 46 per cent of the total Saudi workforce in the tourism sector, it said.
The kingdom is seeking to create more jobs for its nationals in non-oil industries such as tourism, aviation and hospitality, as part of its broader efforts to diversify away from hydrocarbons.
“Will Saudi nationals want these jobs? In the short term, only a few. Tourism has not traditionally been seen as attractive compared to public sector or office roles. But with sustained training, incentives and clear career ladders, more Saudis will step in over time,” Mr Lewis said.
Still, the policy signals to employers and the local workforce that the priority is to hire more Saudis in these licensed tourism establishments.
The move will encourage Saudi Arabia's population of more than 30 million people, many of whom are under 30 years old, to find jobs in the private sector, said David Mackenzie, group managing director of recruitment agency Mackenzie Jones.
“It will create a new tranche of Saudi workers who don’t have to go into the high-paid government jobs,” he said, pointing to the example of Saudi tour guides who represent their country in mega-tourism projects.
“What they're trying to do in Saudi Arabia is to make sure that the tourism industry, their biggest growth market, has Saudis [working] in it,” he said.
The kingdom is learning from the mistakes of tourism hubs that have become overdeveloped by “figuring out a way to sustainable tourism”, Mr Mackenzie added.
Implications for expats
The new policy means employers will face heightened scrutiny on recruitment decisions, analysts say.
“Every non-Saudi hire will need justification, documentation, and proof that local talent was considered,” Mr Lewis said.
However, expats will remain an essential part of the tourism workforce in Saudi Arabia, particularly in specialised jobs, he said.
chief executive of Black & Grey HR.
“Skilled expats won’t disappear − chefs, engineers, event managers, revenue specialists will still be needed, but their entry point will narrow,” according to Mr Lewis.
The new policy will require time to implement as expats will remain essential for filling jobs at mega-tourism projects, such as Qiddiya and others.
“You won't get a Saudi standing on top of a log flume [at an amusement park] saying 'you're next'. It will be a non-Saudi,” Mr Mackenzie said, noting that an expat with more experience and on lower wages would be a more likely candidate.
Travel and tourism ambitions
Saudi Arabia has outlined ambitious plans to develop its tourism sector by boosting air connections, investing in airports and starting a new airline to drive more international visitors to the kingdom.
The kingdom received 116 million domestic and inbound tourists in 2024, a 6 per cent increase compared with 2023, according to the Ministry of Tourism.
Total tourism spending for domestic and inbound travel reached about 284 billion Saudi riyals ($75.7 billion), an 11 per cent year-on-year increase.
More than 128 million passengers travelled through the kingdom’s airports in 2024, up 15 per cent year-on-year and a 25 per cent jump from pre-pandemic levels, according to the General Authority of Civil Aviation.
Major airport capacity upgrades are planned to receive more travellers. Riyadh’s King Salman International Airport is projected to handle 120 million passengers by 2030 and 185 million by 2050. Similarly, King Abdulaziz International Airport in Jeddah is undergoing a phased expansion that will boost its capacity from around 50 million passengers currently to 100 million by 2035.
Start-up airline Riyadh Air is expected to debut in the fourth quarter of 2025, with plans to serve more than 100 international destinations by 2030.
