Oussama El Kadiri, Partner – Head of Hospitality, Tourism & Leisure Advisory, MENA, said: “Growth in Saudi Arabia’s hospitality market is being driven by a combination of government initiatives, private sector investment and evolving consumer preferences. Travel and tourism contributed a record SAR 444.3bn (US$ 114.4bn) to the economy in 2024, representing 11.5% of the nation’s GDP – the highest in the region, according to the World Travel & Tourism Council”.
In the first quarter of 2025, international visitor spending reached SAR 49.4bn, marking a 9.7% year-on-year increase, while total tourism spending rose 11% to SAR 284bn. During 2024, Saudi Arabia welcomed 29.7 million international visitors, up 8%, and 86.2 million domestic tourists, a 5% increase. Total annual tourist spending stood at SAR 284bn, with SAR 169bn generated by international visitors, reflecting a 19% uplift.
Faisal Durrani, Partner – Head of Research, MENA, said: “Our research reveals a rapidly evolving industry driven by high-value travellers, experiential offerings and world-class hospitality assets emerging under Vision 2030 and the National Tourism Strategy. Having already reached 116 million domestic and international visitors in 2023, the government has revised its 2030 target from 100 million to 150 million visitors, with one-third expected to be religious tourists. This underscores the Kingdom’s dual ambition of strengthening its global role as Islam’s pilgrimage hub while expanding its reach into international leisure and business travel and domestic tourism.”
Religious tourism remains a key driver. In 2024, Saudi Arabia hosted 1.8 million Hajj pilgrims and 35.7 million Umrah pilgrims. Of these, 16.9 million international pilgrims performed Umrah, representing a 25% year-on-year increase and the highest number recorded.
Non-religious international travellers now account for 59% of total international arrivals, up from 44% in 2019. Leisure and holiday travel generated SAR 36.4bn in 2024. Asia was the largest source market with 9.7 million visitors. Egypt ranked as the largest individual source country with 3.2 million visitors, followed by Pakistan (2.8 million) and Bahrain (2.6 million).
Between January and August 2025, the average daily rate increased by 0.3% to SAR 746 (US$ 199), while occupancy rose to 61%, resulting in a 1.3% increase in revenue per available room. As of September 2025, quality hotel stock stood at 171,650 rooms, with supply projected to increase by 18% by 2027. More
By Vicky Karantzavelou TravelDailyNews
