This paper focuses on tourism goods in general and on Saudi tourism jewelry in particular. Jewelry is one of the diverse tourism goods and Saudi jewelry did not receive enough attention in terms of development & modernization. Saudi jewelry appealing to tourists is still dependent on individual efforts and has not reached a professional level that enables it to compete internationally. It depends on foreign labor or goods imported from many different countries with their own design and making, which results in loss of its local essence and style. Consequently, it does not reach the desired level in terms of style and quality that assists local development of tourism. There are several shortcomings of current Saudi jewelry industry which are summarized in the following; Shortage of local jewelry making skilled labor and absence of a database for such group that enables interacting and sharing experience with them. Dependence on foreign labor in the design and production of tourism jewelry leading to loss of its authenticity. Shortage of professional workshops specializing in the production of tourism jewelry and graduating skilled local talent. Lack of renewal and development of local jewelry in various aspects such as design and new production technologies to enable it to compete with foreign produced jewelry . Lack of investment in Saudi tourism jewelry which is needed to expand this industry. Absence of guilds or forumswhich enable cooperation and exchange of ideas among jewelers, designers and producers of tourism jewelry. Weak awareness of tourism jewelry and the need for promoting these goods in national and international exhibitions. Lack of interactionbetween academic institutions and designers and producers of this type of jewelry.A research-based approach is needed for development of this industry. Objective: This paper will shed light on this problem and propose some solutions by moving jewelry making in KSA into a new direction. This approach encourages creativity, skills and the use of automated manufacturing for tourism jewelry, in order to compete effectively. It will also provide high artistic value and original and distinctive local flavor that increases its value and its local and international competitiveness. A proposal for an integrated tourism jewelry production unit was developed. This unit will consist of many departments such as research & development, strategy, design, production, marketing and sales besides support services.The researcher proposes to conduct a survey to probe the perceptions and desires of tourists about Saudi tourism jewelry. Al Madinah cityis proposed to host this unit given its importance as a religious tourist destination and the presence of precious metal mines and industry around it. There are many expected advantages of establishing this unit as summarized in the following: Increasing value of Saudi tourism jewelry by positioning it as products that carry Saudi authenticity and appealing to tourists Enabling tourism jewelry to compete in international markets. Preserving Saudi identity and heritage. Raising awareness of Saudi culture and heritage in scientific and professional manners. Creation of new job opportunities for Saudi youth in the fields of design, production and marketing of tourism jewelry. Utilization of experienced Saudi jewelers in the transfer of skills to the new generation. Contribution to the diversification of Saudi national economy .