This paper investigates how regenerative tourism strategies can be designed for informal settlements in Makkah, with a focus on Al-Tayseer, to prevent spatial segregation and marginalization of residents while advancing Saudi Vision 2030’s tourism objectives. Al-Tayseer is a strategically located district in Makkah, situated near the Grand Mosque and frequently utilized by pilgrims during Hajj and Umrah. The area features mid-range accommodations and essential infrastructure supporting religious tourism. Employing a mixed-methods approach, the study integrates quantitative surveys of Al-Tayseer residents and qualitative interviews with stakeholders. Sampling criteria, research instruments, and data analysis techniques are detailed to ensure methodological transparency and reliability. The research reveals that while tourism-led regeneration offers economic opportunities, it also risks exacerbating social exclusion, displacement, and the commodification of marginalized communities. Residents express concerns about housing security, cultural identity, and the lack of participatory planning. The paper contributes a critical, ethically grounded framework for regenerative urban tourism in sacred cities. It highlights the necessity of participatory mechanisms, legal safeguards, and context-sensitive planning to balance tourism growth with social equity.