The tourism sector in Saudi Arabia has undergone a significant transformation since the launch of the government’s Vision 2030 national development strategy. Updated policies and higher investment in tourist infrastructure have driven the increase in visitor numbers. Meanwhile, the diversification of Saudi Arabia’s tourism sector through the development of strong business, resort and sports tourism offerings, has helped to attract new market entrants to the Kingdom. Saudi Arabia’s tourism industry will likely continue to grow with the opening of various new luxury resorts and the hosting of several major sporting events in the next decade.
Structure & Oversight
Six public entities oversee the implementation of Saudi Arabia’s national tourism strategy: the Ministry of Tourism (MoT), the Tourism Development Fund (TDF), the Saudi Tourism Authority (STA), the Saudi Air Connectivity Programme (ACP), the Tourism Development Council (TDC) and the Saudi Red Sea Authority (SRSA). The MoT is responsible for establishing tourism regulations and legislation, attracting investment, providing training and issuing licenses. The STA manages the promotion of the Kingdom as a tourist destination, while the TDF facilitates investment opportunities. The TDF supports a broad range of activities through its tourism empowerment programmes, many of which provide financial support for micro-, small and medium-sized enterprises. In addition, the Ministry of Culture (MoC), established in 2018, oversees the preservation of Saudi Arabia’s historical heritage and promotes the Kingdom’s cultural scene, both domestically and internationally.
The government’s Vision 2030 national development plan focuses on tourism as a key driver of economic diversification away from fossil fuels. Key initiatives from the roadmap include the launch of the National Tourism Strategy, the creation of the e-visa system, the adoption of a new tourism law and the development of programmes aimed at developing talent in the sector. The government aims to generate 1.6m tourism-related jobs by 2030, supported by enhanced training programmes for those working in any tourism-related role. In addition, the development of the country’s natural and cultural assets is expected to attract more diverse visitor segments, stimulate private sector investment and unlock new revenue streams. Since the launch of Vision 2030, government entities have streamlined regulatory frameworks, improved sectoral governance and developed digital tourism tools, such as the Tourism Intelligence Centre.
In 2022 the MoT launched 10 regulations to develop the sector, including new rules for tourism activities, tour guides and tourism hospitality facilities management. A World Travel and Tourism Council (WTTC) analysis put Saudi Arabia in third place globally for tourism investment in 2021, with $36.8bn of financing that year. Saudi Arabia is expected to see an 11% average annual growth rate in its tourism space between 2022 and 2032, compared to a regional average rate of 7.7%. This is projected to result in the Kingdom’s tourism industry contributing 10% or more of GDP by 2030.
Size & Performance
The government’s development roadmap had set the target of welcoming 100m domestic and international visitors by 2030, which the Kingdom achieved seven years ahead of schedule. In 2024, 30m international visitors and more than 86m domestic tourists travelled in Saudi Arabia, with a combined spending figure of $75.7bn, compared to $31.2bn in 2021. The government has since set a new target of attracting 150m tourists a year by 2030. There was a 390% increase in the demand for tourism activity licences in 2023, which supported greater economic diversification at the national level. Tourism contributed around 4.4% of the GDP both in 2023 and 2024, up from approximately 3.6% in 2019. The Kingdom served around 116m domestic and international tourists in 2024, marking a combined increase of 6% compared to 2023, with total visitor spending expanding to SR284bn ($75.7bn), reflecting 11% growth. There were around 30m inbound tourists who spent an estimated SR168.5bn ($44.9bn) that year, up 19% from 2023. Saudi Arabia ranked first globally in terms of growth in international tourism receipts from before and after the Covid-19 pandemic period, recording a 102% increase in international arrivals in the first quarter of 2025 compared to the same period in 2019, according to the figures from the UN Tourism’s World Tourism Barometer.
The UN Tourism’s Regional Office for the Middle East opened in Riyadh in 2021, which is expected to support greater innovation in the sector, as well as enhance tourism education and rural development. The WTTC expects travel and tourism to contribute SR447.2bn ($119.2bn) to Saudi Arabia’s economy in 2025, contributing more than 10% of GDP with employment in the sector projected to reach 2.7m that year. Meanwhile, inbound visitor spending could reach SR200bn ($53.3bn), and domestic spending is expected to climb to SR162.5bn ($43.3bn).
Regional Player
Saudi Arabia’s tourism sector is one of the fastest-growing in the Middle East. Travel and tourism in the region is expected to contribute $367.3bn in 2025 and support 7.7m jobs according to the WTTC, with international visitor spending rising to $194bn, or 24% above 2019 levels. The job market in the sector is rapidly expanding thanks to various MoT initiatives and the introduction of National Occupational Skills Standards. The government established over 649,000 training opportunities for current and aspiring tourism professionals between 2020 and 2025. In addition, women representation reached 13% of the total tourism workforce in the Kingdom in January 2025, according to data from the General Authority for Statistics. Education in tourism sector-related subjects is now encouraged in schools from an early age, in line with Vision 2030 aims to develop talent in the sector to support growth.
The development of digital tourism, in correlation with the broader digitalisation targets outlined in Vision 2030, is expected to improve data collection, enhance access for visitors and improve services. The MoT’s 2022 Digital Tourism Strategy (DTS) consists of nine programmes and 31 initiatives to be implemented over three years through 2025. The MoT launched an electronic visa system in 2019 to enhance access for international tourists. Tourists can apply for a visa online with a validity of up to one year, which allows them to stay in Saudi Arabia for a continuous period of up to 90 days. There were 66 countries eligible for the visa as of January 2026. The training and education e-portal that was established under the DTS attracted more than 226,000 registrations in the first year of its launch. By 2022, the same platform had assisted with the training of over 110,000 employees and job seekers nationwide.
Source Markets
Bahrain, Egypt, India, Indonesia and Jordan are the primary source markets for inbound visitors to Saudi Arabia. In the first half of 2025 inbound tourists stayed an average of 18.6 nights, while domestic travellers spent an average of 6.7 nights in Saudi destinations. Leisure, shopping and sports trips represented the largest share of travel motivations, followed by religious visits and family trips. Makkah and Al Madinah were the most popular sites for inbound tourists, while Riyadh and the Eastern Province were the top destinations among domestic travellers.
In 2024, around 57% of visitors stayed in hotels, with apartments and private residences being the next-most-popular choices. Leisure travel is quickly becoming more popular in the Kingdom, with non-religious visits contributing 59% of inbound arrivals in 2024, compared to 44% in 2019. Increased international awareness of Saudi Arabia as a resort, sports and entertainment destination has helped to diversify visitor segments and drive growth.
Hotel Infrastructure
The expansion of the tourism market since the launch of Vision 2030 is driving demand for hotel accommodation across the Kingdom. Upcoming global events, such as Expo 2030 and the 2034 FIFA World Cup, are expected to spur greater demand over the coming decade and attract higher levels of private investment to the hotels and hospitality market. Private investors may also be encouraged by the introduction of a new law that will allow foreigners to purchase real estate assets in designated zones starting in January 2026 (see Legal Framework chapter).
Owing to the increase in public and private investment in the hospitality sector, Saudi Arabia is leading growth in the MENA region. There were around 447,861 hotel rooms in Saudi Arabia as of May 2025 and a pipeline of over 92,000 rooms across 342 projects. The next-biggest hotel growth is in Egypt, with 127 projects and over 28,000 rooms, out of a regional total of 650 projects and 161,574 rooms.
The domestic hospitality market has an estimated value of $27.1bn as of 2025, which is expected to rise to $54.3bn by 2030, growing at a compound annual growth rate (CAGR) of 7.4%. Investment in online booking platforms is helping to grow the sector’s digital market and enhance access for foreign visitors. The most popular type of accommodation is chain hotels, with a 58.4% market share. The luxury accommodation segment has grown significantly in recent years, to achieve a 37.3% share of the hospitality market in 2024. Around 61% of hotel rooms are classified as luxury, upscale or upper upscale.
Serviced apartments represent the most rapidly expanding segment, increasing at a CAGR of 12.6% in 2025 to achieve a 13.3% market share. This is largely driven by the demand from construction and corporate workforces associated with a wide range of Vision 2030 projects, who stay for extended periods, as well as domestic travellers and pilgrims outside of peak seasons. Brands such as Wyndham’s Super 8 are responding to this demand, with more accommodation brands expected to enter the market as the room count is forecast to triple by 2030.
Seaside Attraction
The Makkah-Jeddah corridor attracted 27.1% of Saudi Arabia’s hotel guests in 2024. However, as resort developments are completed, the market share of the Red Sea and broader western coast is expected to increase significantly. As part of Vision 2030, the government is rapidly developing its resort tourism segment to attract sun and sea tourists to the Kingdom.
Red Sea Global (RSG) is owned by the Public Investment Fund (PIF), Saudi Arabia’s sovereign wealth fund. RSG was created in line with Vision 2030 aims to develop and promote hospitality on the Red Sea. The Kingdom’s west coast spans over 28,000 sq km and is surrounded by the world’s fourth-largest barrier reef system, making it a key location for sun and sea tourism, as well as eco- and adventure tourism. The first Red Sea destination was completed in 2023, with 16 resorts expected to open during the first phase of development. By 2030 the government aims to establish 50 Red Sea resorts. The Thuwal Private Retreat launched as a single-hotel destination in December 2024. Meanwhile, Amaala’s first eight resorts are due to open in 2025. A total of 30 Amaala resorts are expected to be completed by 2030.
RSG focuses on sustainable tourism and providing employment opportunities, aiming to power all destinations using 100% renewable energy, grow 30m plants and achieve net-zero carbon emissions by 2030. It plans to establish a protected marine area. In addition, the company aims to create 120,000 jobs and support 10,000 graduates through its educational initiatives, including a Red Sea scholarship programme, with 50% from the local community.
In addition to public funding, RSG received a $1.7bn credit facility in October 2025 for the development of its Amaala destination from Riyadh Bank, the Saudi Investment Bank and Bank AlBilad under a green loan framework. Additionally, in September 2025 RSG opened Shura Links, Saudi Arabia’s first island golf course, on Shura Island. The firm aims to accelerate digital transformation across its destinations to enhance the visitor experience. In September 2025 RSG secured SR1.2bn ($319.9m) in funding from telecommunications provider STC. This supports the government’s aim of establishing Saudi Arabia as a global leader in smart destination development and helps grow the digital economy.
The Red Sea resorts are an example of Saudi Arabia’s increased openness to private investment to support the transformation of the tourism sector. RSG has established several public-private partnerships, which are expected to boost funding in the region and support international marketing efforts. The Red Sea International Airport is expected to commence operations in 2025, which will further enhance access. Meanwhile, RSG is working with local travel company Almosafer to promote Red Sea resorts to foreign markets.
The $1.5trn NEOM mega-project is also under way, which is expected to become a global destination. At the centre of the NEOM project is a futuristic, car-free and zero-carbon $500bn city called The Line. Once complete, NEOM is expected to attract tourists to a range of destinations, including Trojena – the region’s first outdoor ski resort, and Magna, which consists of 12 coastal destinations. The luxury island resort Sindalah was the first major NEOM project to be completed, launching in October 2024.
Global Hotels
In September 2024 the Hyatt hotel chain announced plans to develop two hotels in Jaumur, one of Magna’s destinations. The Park Hyatt Jaumur and Andaz Jaumur Marina, which are expected to open in 2027, will expand Hyatt’s presence in Saudi Arabia’s luxury segment, offering a total of 350 rooms and suites. Elsewhere, Zannier Hotels is developing an eco-resort in the Magna destination of Zardun, in the north-west of the country, on the coast of the Gulf of Aqaba. Upon completion, the resort will include 100 rooms and suites across three buildings, and will offer adventure tourism and wellness activities. Meanwhile, in July 2024 Equinox Hotels announced plans for the Equinox Resort Treyam, another Magna destination. The resort will include a spa and a 450-metre pool. Capella Hotels and Resorts plans to open a resort in Magna’s Elanan with a focus on sustainable development. It is set to include 80 rooms and suites, as well as a wide range of wellness and culinary offerings.
The NEOM Bay Airport opened in 2019, enhancing access to the region, with direct international links to Cairo, Doha, Dubai, Istanbul and London. Reflecting its scale and ambition, the NEOM project has progressed through a phased implementation approach, with timelines for some components adjusted to accommodate complex logistical and financing requirements. As with other landmark global developments, NEOM has attracted international attention and discussion around cost, sustainability and delivery. At the same time, development momentum continues across flagship assets and supporting infrastructure, and the project remains a cornerstone of Saudi Arabia’s long-term strategy to establish itself as a globally competitive destination for tourism, innovation and investment.
Niche Markets
As part of its tourism strategy, the MoT is developing a wide array of tourism segments to attract a broad range of domestic and international visitors. These sectors include meetings, incentives, conferences and exhibitions (MICE); medical; cruise; and eco-tourism. The value of Saudi Arabia’s MICE tourism was estimated at $3.2bn as of 2025 and is expected to reach $5.2bn by 2030, growing at a CAGR of 9.9%. This is supported by the $800bn infrastructure pipeline outlined in Vision 2030, which includes giga-projects, next-generation airports and the expansion of hospitality capacity, with offerings for large-scale business events. Improvements to e-visa and stopover permit processes have helped attract more business tourists to the market, while value-added tax refunds have enhanced the Kingdom’s appeal, encouraging visitors to extend their stay during conference seasons.
The most popular form of MICE events in Saudi Arabia is conferences, with almost 40% of the market share. Corporate industries contributed around 56% of MICE attendance in 2024, with the associations and non-governmental organisations industry growing steadily. Accommodation contributed 34.4% of the Kingdom’s MICE market size that year, with the proportion from tickets and registration fees expected to expand. In terms of location, central Saudi Arabia attracted a 47.6% share of the country’s MICE market in 2024. One MICE segment that is growing at a particularly high rate is film. In 2018 the government ended a 35-year ban on cinemas in line with Vision 2030. This has led to greater interest from the international film industry, with Saudi Arabia hosting trade shows such as the Saudi Film Confex, which debuted in 2023.
Cruise tourism is growing more popular as Saudi Arabia invests in its resort offerings. Revenue from the Kingdom’s cruise market is expected to total $50.1m in 2025 and expand at a CAGR of 8.6% between 2025 and 2030 to reach $75.8m by the end of the period. Meanwhile, online sales are expected to contribute 22% of the total cruise market revenue by 2030. Elsewhere, the medical tourism industry has grown rapidly in recent years alongside the transformation of Saudi Arabia’s health sector. This has been supported by favourable health reforms, high levels of public funding in the sector and a greater openness to private sector involvement. According to a March 2022 study from the market research firm BlueWeave Consulting, the Kingdom’s medical tourism market is expected to develop at a CAGR of 4.6% between 2022 and 2028.
Saudi Arabia is rapidly becoming a medical tourism destination thanks to its strategic location, advanced medical infrastructure and the digitalisation of services. The government has invested heavily in the establishment of medical cities and specialised hospitals with advanced technology. The launch of luxury health care services, including wellness retreats and VIP medical packages, has also attracted greater interest in the sector. Religious tourism continues to be a major driver of visitor numbers, as Saudi Arabia is home to the holy sites of Makkah and Al Madinah. The Kingdom welcomed 1.8m Hajj pilgrims (including both international and domestic visitors) and 17.5m Umrah pilgrims in 2024. Around 10.6m international pilgrims performed Umrah in 2024, according to the MoT.
Marketing
It is the role of the STA to attract domestic and international tourists to the Kingdom through the promotion of the country’s diverse tourism offerings in line with the objectives of the National Tourism Strategy and Vision 2030. Since it was established, the STA has fostered a range of public and private partnerships with government agencies, hospitality firms, airlines and other tourism service providers to promote Saudi Arabia as a major tourist destination. The government has used its upcoming sporting events, such as the 2034 FIFA World Cup and the Saudi Arabia Grand Prix Formula 1 racing event, to attract a new tourist segment.
Saudi Arabia has expanded its cultural offerings to attract higher numbers of visitors. The creation of Riyadh Season – a series of entertainment, cultural and sporting events – and Riyadh Fashion Week is helping to attract more tourists to the capital. Marketing campaigns have focused on specific sites, such as the Forever Revitalising initiative, which promotes the ancient desert region of Al Ula, home to Saudi Arabia’s first UNESCO World Heritage site, Hegra. The campaign was launched in 2024 and the site reported a growth in tourist numbers (inbound and domestic) by 37% that year, with room occupancy in the region increasing by 56.3%.
Culture
There is a range of cultural offerings in Saudi Arabia, which is home to some of the most emblematic religious and historical sites in the region. Beyond the annual pilgrimages to Makkah and Al Madinah, however, most of these sites attract relatively low visitor numbers, citing a lack of awareness. Since the launch of Vision 2030 the government has sought to optimise the country’s cultural offerings by investing in infrastructure, improving access and promoting the Islamic identity. The MoC was created to promote Saudi Arabia’s cultural scene, preserve the Kingdom’s heritage and build a prosperous cultural future in which diverse forms of culture and arts can flourish, overseeing 11 cultural commissions. The National Strategy for Culture establishes diversity and cultural richness as a core pillar, with 16 sub-sectors, including music, visual arts, theatre and performing arts, fashion, architecture and design, culinary arts, film, heritage, museums, libraries, books, publications, literature, language, translation, natural heritage, cultural and archaeological sites, cultural festivals and events. The development of Diriyah, a historic city on the north-western outskirts of Riyadh, is being led by the Diriyah Gate Development Authority, with the MoC supporting heritage preservation and programming. Diriyah is home to the At Turaif Historic District, Salwa Palace and other heritage sites and its proximity to the capital is key to encouraging visitors to Riyadh to extend their stay and explore Saudi Arabia’s cultural offerings.
One of the cultural attractions that is growing in popularity is the Saudi Seasons, a series of cultural festivals launched by the General Entertainment Authority in October 2019 to celebrate the heritage, culture and history of the Kingdom. The different seasons are held in Riyadh, Jeddah, Sharqia, Aseer, Taif, Diriyah and Al Ula. The festivals encourage visitors to explore multiple regions of the Kingdom. Additionally, the government is investing in museums across the Kingdom. For example, the MoC plans to open the Black Gold Museum, which will allow visitors to explore the stages of oil discovery, its connection to human life and its role in improving living standards. Meanwhile, the MoC and the Ministry of Communications and IT are launching a technical platform for the National Museum to permit visitors to take a virtual tour of the museum. Furthermore, the Haramain Exhibition application, launched by the General Authority for the Affairs of the Two Holy Mosques, enables users to explore the two holy mosques virtually, including architectural exhibits and 3D content. The MoC is also working to promote cultural tourism among younger generations. The Intangible Heritage Association held a workshop in July 2025 to encourage preservation of heritage in the digital age and encouraged young generations to become the Kingdom’s future storytellers.
Outlook
The tourism sector has expanded at a significant rate since the launch of the Vision 2030 development strategy. The creation of a national tourism law and regulatory frameworks has provided the MoT and other government agencies with a clear roadmap to develop the sector. Investment in major tourism projects, the digitalisation of services and the provision of more training opportunities for sector workers have helped strengthen the tourism industry. In addition, a greater openness to private financing is driving investment in the sector. The completion of several mega-projects across the country, including coastal resorts and historic sites, should drive tourist arrivals even higher. In addition, the hosting of major global sporting events, most notably the 2034 FIFA World Cup, is expected to attract new tourism segments, and stimulate long-term investment in hospitality and transport infrastructure. This will further enhance Saudi Arabia’s international profile as a year-round destination for leisure, business and entertainment tourism.
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