Saudi Arabia: In the competitive world of hospitality, sustainability is no longer a niche trend but a crucial business strategy. So, is your next hotel stay contributing to a greener planet and supporting local communities?

Green hotels are becoming more and more popular among Saudi Arabia’s hospitality and tourism industry, which is wonderful news for the Kingdom’s environmentalists.

To draw in clients and increase profits, a number of investors are now focusing on initiatives that advance sustainability.

The push for sustainable tourism has gained remarkable momentum in recent years, with the hotel industry at the forefront of this transformation.

Current trends

Nicolas Mayer, a partner of global industry leader tourism at PwC Middle East told Arab News that a focus on environmental and social sustainability are driving change in the Kingdom.

He explained that environmental sustainability is important when it comes to energy efficiency and sustainable building practices.

Mayer noted that the integration of Internet of Things technologies and advanced building management systems are revolutionizing energy efficiency in hotels.

“Preventive maintenance sensors and advanced energy analytics contribute significantly to CO2 reductions, though these improvements are often invisible to consumers,” Mayer said.

The construction and renovation of hotels increasingly focus on sustainability, which means that when building or updating premises, developers are using practices that reduce environmental impact, such as using eco-friendly materials and energy-efficient technologies.

“Saudi Arabia, for example, is ensuring new tourism developments do not harm ecosystems, particularly around the Red Sea and inland destinations,” Mayer said.

He added: “The proactive environmental master planning by Saudi tourism authorities is expected to result in more sustainable destination development compared to more established destinations.”

The social aspect of sustainability in tourism, which includes local workforce development and community engagement, emphasizes the importance of collaborating with communities and stakeholders.

Increasingly, there is an acknowledgment that tourism should take place in well-preserved ecosystems, and it is the duty of developers and operators to bolster and support these.

“The sustainable tourism landscape within the hotel industry is rapidly evolving. There’s a pronounced shift toward eco-friendly practices, with travelers increasingly prioritizing hotels that align with their environmental values,” Craig Hewett, co-founder and chief hotel officer at travel app Wego explained to Arab News.

He added: “This has led to a surge in demand for initiatives such as water conservation, energy efficiency, and waste reduction. This is exemplified by projects like the Red Sea Project, which showcases a holistic approach to sustainable development.”

A bright experience

If sustainability remains at the forefront of the hotel industry. Does that mean it will enhance guest experiences?

According to a study by the online travel agency Booking.com in April, 83 percent of travelers believe that sustainable travel is important, and 75 percent of global travelers say that they want to travel more sustainably over the next 12 months.

“The trend is not just about meeting consumer expectations but also about differentiating brands in a competitive market. Hotels are recognizing that sustainability is not a passing trend but a critical factor in attracting and retaining guests,” Jamie Charlesworth, managing director of Middle East and India at designer and manufacturer of water park products firm Whitewater, told Arab News.

He added: “However, there is a cautionary tale of greenwashing, where companies may exaggerate their sustainability claims without taking meaningful action. To avoid this, transparency and authenticity are key.”

Sustainable practices in hotels greatly improve the overall guest experience by providing genuine and engaging connections with the local culture, society, and environment.

Guests today are looking for more than just standard amenities — they want experiences that offer real insight into the local way of life and surroundings.

“For instance, hotels that incorporate local Saudi crafts and cuisine into their offerings or provide opportunities for guests to participate in traditional cultural activities or even everyday Saudi social life create a more engaging and memorable stay and provide additional spending opportunities which in turn contributes to hotel’s profitability,” Mayer said.

He continued: “Additionally, initiatives such as sourcing food from local farms or collaborating with local artisans for decor not only support the local economy but also enrich the guest experience — there are many such examples in recent hotel projects in AlUla, Al-Balad and elsewhere in the Kingdom.”

Mayer further explained that when hotels align their services with guests’ desires for sustainable and culturally authentic experiences, it not only makes customers happier but also benefits the resorts financially.

By meeting these preferences, hotels attract more guests and build loyalty, which leads to increased revenue.

This positive outcome reinforces the business’s commitment to sustainability, creating a cycle where both guest satisfaction and economic success are continuously enhanced.

“Moreover, sustainable environmental practices, while often less directly visible to guests, contribute to an improved experience by ensuring a responsible and pristine environment,” Mayer said.

He added: “Advanced technologies in energy efficiency, intelligent building management, and sustainable construction practices reduce the ecological footprint of hospitality assets.” 

Role of technology

Technology plays a pivotal role in advancing sustainable practices within the hospitality industry. Innovations such as smart thermostats, energy-efficient lighting, and waste management systems are transforming hotel operations.

“Saudi Arabia’s focus on digital transformation aligns perfectly with the need for technological solutions in the hospitality sector. Technology is a powerful tool in driving sustainable practices within the hotel industry,” Hewett said.

He added: “From energy management systems to digital guest tools, innovation is transforming how hotels operate.”

Another significant aspect is advanced technologies that are transforming how hotels manage their energy usage, leading to significant reductions in CO2 emissions.

“Technology facilitates the integration of sustainable practices in daily operations, such as water conservation measures and waste management systems, thereby promoting overall sustainability in hotel operations,” Mayer said.

He continued: “On the social side, technology enables better community engagement and workforce development through platforms that facilitate local hiring, training, and procurement.”

However, Mayer explained that hotels face several challenges when implementing sustainable practices, including high initial costs, resistance to change, and the complexity of integrating new technologies.

“The significant upfront investment required for energy-efficient systems, sustainable construction, and local procurement can be a deterrent, particularly for smaller operators,” he said.

The PwC Middle East official added: “Here the Saudi Arabian tourism ecosystem actually has a global advantage, as many of the hotels are only just being built now, which is more cost efficient than retrofitting older buildings. Integrating advanced technologies like IoT and intelligent building management systems also requires specialized knowledge and training, adding to the complexity.”

Mayer went on to say that there may be a requirement for additional training and awareness campaigns from staff and management who are accustomed to traditional practices and may not see the immediate benefits of sustainability efforts.

“To overcome these challenges, hotels can seek out government incentives and grants aimed at promoting sustainability, engage in partnerships with local communities and suppliers to share costs and benefits, and invest in comprehensive training programs to build internal support and expertise,” he said.

He added that the Saudi government, through the Ministry of Tourism, the Tourism Development Fund and other programs, also provides a wide array of support and programs aimed at facilitating local initiatives.

Evolution to come

Mayer outlined the expected evolution of sustainable tourism in the hotel industry, highlighting several key trends and changes.

“Over the next five years, sustainable tourism in the hotel industry is poised to become a cornerstone of hospitality management. Hotels will increasingly adopt integrated sustainability frameworks that balance environmental, social, and economic goals,” he underlined.

He further elaborated that the adoption of smart technologies, such as IoT and AI-driven energy management systems, will become widespread, enhancing resource efficiency and reducing operation costs.

“Moreover, there will be a stronger emphasis on social sustainability, with hotels investing in local communities through workforce development programs, local sourcing, and community engagement initiatives,” Mayer said.

Wego also expects to see a continued and accelerated growth in sustainable tourism within the hotel industry.

“As consumer demand for eco-friendly options increases, hotels will need to adapt and innovate to remain competitive,” Hewett said.