The hotel sector in Saudi Arabia is poised for a massive physical expansion from its current foundation of 171,650 keys, with approximately 94,500 more rooms presently being built or in the final stages of planning.
This surge follows a landmark year where the travel and tourism industry in the Kingdom grew by 32 percent. These development insights are highlighted in The Saudi Report by the global property consultancy Knight Frank, providing a new perspective on the country’s monumental economic shift.
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 SAR444.3 billion to the economy in 2024, representing 11.5 percent of the nation’s GDP – the highest in the region, according to the World Travel & Tourism Council”
During the opening quarter of 2025, spending by international tourists jumped to SAR49.4 billion, which signifies a 9.7 percent increase compared to the previous year. Simultaneously, the total expenditure on tourism climbed by 11 percent to reach SAR284 billion. In 2024, the nation saw 29.7 million international arrivals, an 8 percent year-on-year improvement, alongside 86.2 million domestic travelers, which was a 5 percent rise over 2023. Of the total SAR284 billion spent by tourists annually, international visitors contributed SAR169 billion, marking a 19 percent boost.
“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.” — Faisal Durrani, Partner – Head of Research, MENA More
By Elias Al Helou
