JOHN PAGANO DISCUSSES REGENERATIVE TOURISM IN KSA

The Red Sea Development Company (TRSDC) is the developer behind The Red Sea Project, a regenerative tourism project featuring an archipelago of more than 90 pristine islands, dormant volcanoes and other natural treasures. HN spoke with the gigaproject's CEO, John Pagano, to learn more about the development agenda.

In what way does The Red Sea Project complement Vision 2030?

The Red Sea Project is one of three gigaprojects in Saudi Arabia and is dedicated solely to tourism. It will play an instrumental role in achieving HRH Crown Prince Mohammed bin Salman's Vision 2030 — a plan to diversify the economy and transform its socio-economic landscape. The project will be a major contributor to the rapidly expanding tourism sector, considered a key pillar of Vision 2030. We expect to create more than 35,000 direct job opportunities and a further 35,000 indirect roles through various growth opportunities for local businesses and entrepreneurs.

In addition, the project will contribute SAR 100 billion to the Saudi economy during the construction phases. Once fully operational, it is expected to deliver SAR 22 billion each year. Over 70 percent of the total value of construction contracts have been awarded to Saudi companies to date.

Can you tell us more about the project's development phases?

Due for completion in 2023, phase one of the project includes 16 hotels across five islands and two inland resorts, marinas, leisure and lifestyle amenities as well as a state-of-the-art international airport. The first four hotels and the airport will be operational by the end of 2022, at which point we will begin receiving our first guests. Designed by world-renowned architects Foster + Partners, the airport will provide a next-generation, smart experience through innovative design and cuttingedge technology, creating exquisite travel experiences and making the project easily accessible from anywhere in the world. Upon completion in 2030, the destination will boast 50 hotels, offering 8,000 hotel rooms and 1,300 residential properties.

Has Covid-19 affected your development schedule?

The priority of the business during the pandemic has been the safety of employees. However, despite the challenges of Covid-19, we have made substantial progress and remain on target to welcome our first guests by the end of 2022. In fact, to date, we have awarded more than SAR 12.5 billion in contracts and made headway with key infrastructure projects on-site: marine infrastructure, 80 kilometers of new roads to connect the destination and our Coastal and Construction Villages.

Is the project in competition with others locally, such as AMAALA or Neom?

Owned by the Public Investment Fund (PIF), these projects are designed to become important hubs of discovery and inspiration that will stimulate the economy and shape the future of tourism in the kingdom. Neom is creating a fully fledged “city of the future,” while Amaala is focused on art and wellness, which alongside our own luxury regenerative tourism project creates a complementary ecosystem, particularly when combined with other leisure and tourism projects across the country, such as Qiddiya, Diriyah Gate and Al Ula.

At The Red Sea Project, we are focusing on regenerative tourism. Nature is our most valuable asset and influences every decision we take. We believe the current concept of what it means to be sustainable is no longer enough. Our aim is to create first-class ecofriendly experiences and set new standards for the hospitality industry. Our guests will be able to choose from a collection of luxury accommodation options that range from mono-island properties to enriching desert experiences that are all within close proximity at a fully integrated destination. Last but not least, the project will be one of the first tourism destinations in the world to be powered solely by renewable energy 24 hours a day.

In your opinion, what makes this project stand out?

I believe that our groundbreaking approach to environmental regeneration combined with a commitment to socioeconomic development makes us stand out from the crowd. TRSDC goes beyond environmental considerations to consider the broader sustainability matrix and is laser focused on the socio-economic impact of the project for the local communities living in close proximity to the destination and the wider kingdom. Nowadays, luxury is defined by authentic experiences that fuse international standards with a local flavor and this is exactly what we aim to showcase. We want our visitors to enjoy an intimate and immersive experience of The Red Sea.

Who are your global hospitality partners?

We are thrilled that the major international hotel groups have shown tremendous interest in The Red Sea Project, and we are currently in advanced discussions with many of them. Stay tuned as we will reveal some names soon! What is important for us is that we select our business partners based on their clear alignment with the shared responsibility toward our sustainability objectives. As a developer, TRSDC will lean on the engaged operators to mobilize their brand and marketing apparatus to ensure that the overall vision of the project is met. In partnership with our selected operators, we will be introducing best-in-class innovative operating equipment, processes and technology. The majority of backof-house services (staff catering, laundry, etc.) will be centralized and handled on the mainland to ensure a minimal carbon footprint at the properties themselves where the surroundings are very fragile. It also allows our partners to realize a number of operational efficiencies.

Where do you see Saudi Arabia’s tourism sector in five years' time?

From my interactions on the ground, it is apparent that our industry is experiencing a major shift in attitude. More and more, young Saudis are taking up fulfilling jobs in hotels and restaurants. This is happening throughout the entire service industry including retail, beauty, transportation, health and fitness. This shift will eventually and provide best-in-class customer service for tourists visiting the kingdom.

There is no doubt that the most important element of tourism is human capital. The kingdom and the private sector are investing heavily to ensure that a qualified pool of talent is ready to lead. Our recent research study, “Future Faces of Tourism,” revealed that young Saudis are less interested in careers in more traditional sectors such as oil and gas but favor those within the country’s strategic growth industries aligned with Saudi Arabia’s Vision 2030. Tourism and hospitality are regarded as the top jobs that young Saudis are interested in, with 91 percent keen to pursue a career in tourism. theredsea.sa

Nowadays, luxury is defined by authentic experiences that fuse international standards with a local flavor.