First unveiled in 2017, The Red Sea Project boldly captures Saudi Arabia’s goal to become a leading tourist destination. The endeavor aims to transform the country’s west coast into a hub where luxury, sustainability and innovation converge to drive economic growth. In this interview with Economy Middle East, John Pagano, the group CEO of Red Sea Global, discusses the project’s milestones, challenges and sustainability plans.
The Red Sea is billed as “the world’s most ambitious luxury tourism development.” What have been the biggest milestones you’ve achieved so far in this project?
2023 marked a special year of milestones that we will never forget. For starters, our first two resorts officially opened to the world: Six Senses Southern Dunes, The Red Sea and St Regis Red Sea Resort, making a total of 166 keys available to visitors.
Nujuma, a Ritz Carlton Reserve, is now receiving bookings. Three more resorts are scheduled to open in 2024. Next year, 19 more resorts will open across The Red Sea and AMAALA.
We celebrated our first flight to our state-of-the-art, dedicated Red Sea International Airport in September 2023 and welcomed the first international flight from Dubai on April 18.
Another key milestone was the take-off of the first seaplane flight which our subsidiary company, Fly Red Sea, operated. With the aim of transporting guests across crystal-clear waters to The Red Sea’s island resorts, it is the first seaplane company that launched in the Kingdom.
With the first flight touching down and our first resorts receiving guests, Saudi Arabia’s position on the global tourism map is all but secured.
The project has a pivotal role in Saudi Arabia’s Vision 2030 strategy. How does the Red Sea destination impact the local economy and job market?
Central to our mission is regenerative tourism, which makes us a cornerstone of Vision 2030. Regenerative tourism dictates that we serve people as well as our planet, creating opportunities for Saudis and the economy to protect, preserve and actively enhance the environment around us.
At The Red Sea, we are creating 70,000 new jobs and developing talent for the expanding tourism sector. To nurture this talent, RSG is funding scholarships for students pursuing hospitality and tourism degrees at the University of Prince Mugrin and hosting multiple training and graduate programs for thousands of students.
One of the key goals of Vision 2030 is to increase tourism’s share of national GDP to 10 percent, and it has already increased from 3 percent to 4.5 percent in recent years. As The Red Sea reaches completion, it is projected to contribute as much as SAR22 billion to the national GDP.
We are also stimulating the economy by awarding a series of contracts to local businesses. RSG has awarded SAR64 billion worth of contracts since construction began, with over 70 percent awarded to Saudi businesses.
How about the biggest challenges? How are you addressing them?
Eleven percent of all global CO2 emissions come from the industry, and we recognize the need to curtail this.
Our ambitious regenerative efforts fall in line with a target of achieving a 30 percent net conservation benefit by 2040. Current initiatives include planting mangrove forests (nearly three million seedlings already in the ground) and pursuing coral regeneration.
Before construction began, we undertook a comprehensive marine spatial planning simulation (MSP) to inform final plans and set a baseline for conservation work. Consequently, at The Red Sea, we chose to develop only 22 of the 90 islands and designated nine as special conservation zones. It helped to identify islands that could benefit from our presence, like Shura, the hub island home to 11 resorts.
The MSP also informed us that one of the beautiful islands we were hoping to develop — Al Waqadi — was home to the endangered Hawksbill Turtle. As the turtles were there first, we decided to develop elsewhere and protect the island for their nesting.
How are you balancing luxury tourism with environmental sustainability and conservation?
Some of our experiences allow for direct interaction with regenerative initiatives, including visiting Corallium, our marine life institute at AMAALA that focuses on coral regeneration and other marine programs.
Additionally, we are creating inclusive ways for guests to experience sustainability and explore our oceans. The Red Sea and AMAALA will be home to Saudi’s first PADI Adaptive Service Facilities, opening the experience up to divers of all abilities by adding wheelchair access to sites as well as having adaptive technique instructors available.
Meanwhile, we contracted leading architects to create resorts that blend with the natural environment. Every resort gives guests the feeling of harmony with their surroundings, adding to the luxury experience while respecting the natural habitats and biodiversity of the location.
The Red Sea is powered by 100 percent renewable energy, and five solar farms have been built. To guarantee 24-hour renewable energy usage, we built one of the world’s largest off-grid battery storage facilities.
What are the biggest trends that you think will reshape Saudi’s tourism and hospitality industry?
Sustainability and wellness are two growing trends that Saudi Arabia can really capitalize on. Booking.com’s 2023 Sustainable Travel Report found that 76 percent of people want to travel more sustainably, while Wellness tourism is projected to be worth $8.5 trillion globally by 2027.
Saudi Arabia is already responding to the increased demand for sustainable tourism through giga-projects, one of which is The Red Sea. We are making a positive impact on the lands and waters under our care. One example is our mangrove nursery, where we will grow 50 million mangrove trees by 2030.
AMAALA caters specifically to wellness tourism. For example, we have partnered with industry-leading brands like Clinique La Prairie, whose resort, the first outside of Switzerland, will focus on health longevity. The resort will feature a diagnostics lab, museum, beach club, and cooking school, supporting visitors in their journey of rejuvenation and self-discovery.
About John Pagano
John Pagano is the CEO of Red Sea Global, a vertically integrated real estate company with regenerative development across Saudi Arabia’s Red Sea coast, including The Red Sea and AMAALA.
Pagano has more than 35 years of international experience in the commercial property industry. With experience covering every aspect of the real estate value chain, John Pagano is leading the development of Red Sea Global’s projects to create a series of regenerative luxury tourism destinations in Saudi Arabia.
Before joining Red Sea Global, Pagano headed his company, Old Fort Capital Investments Ltd. His company focused on offering strategic advice and services to landowners, investors and developers, with a focus on large-scale real estate developments.
Before launching his company, John Pagano spent more than 23 years at Canary Wharf development in London, during which time he held several leading executive positions. Pagano also served for more than four years as president of Baha Mar Development Company Ltd. (BDMC).
John holds a BASc degree in Mechanical Engineering from the University of Toronto.
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