Saudi Arabia’s tourism sector is entering a new phase of accelerated growth, with forecasts pointing to strong gains over the next five years. According to BMI, a Fitch affiliate, international arrivals are expected to rise by 6.1% in 2025, reaching 31.5 million, while tourism receipts are set to increase by 5.1% to $23.2 billion. Between 2025 and 2029, arrivals are projected to grow by an average of 4.3% annually, culminating in 36.6 million visitors and $25.8 billion in revenues by the end of the period.
These figures confirm that tourism is no longer a peripheral activity in Saudi Arabia — it is now one of the key pillars of the country’s ambitious Vision 2030 economic diversification programme. The sector aims to contribute 10% to GDP and create 1.6 million jobs by the end of the decade.
In 2024, the Kingdom welcomed 116 million domestic and international visitors, a remarkable achievement in itself. Yet the next goal is even more ambitious: 150 million visitors by 2030. To meet this target, Saudi Arabia is investing heavily in both infrastructure and experience. Flagship projects such as The Red Sea, Amaala, and Al-Uqair are redefining the country’s coastal tourism offering, while the creation of a $4 billion Tourism Development Fund is helping to finance a new wave of hospitality ventures. The launch of Riyadh Air is expected to further strengthen international connectivity, and the General Entertainment Authority, established in 2016, continues to raise the Kingdom’s global profile through high-profile cultural, music, and sporting events.
While the headline numbers are impressive, the real challenge lies in broadening the visitor base. In 2024, only around 29.7 million visitors were international, and of these, 41% came for religious purposes such as Hajj and Umrah. The government is now focused on diversifying tourism motives by attracting leisure travellers, cultural explorers, and MICE visitors (Meetings, Incentives, Conferences, and Exhibitions), particularly from Europe and North America — markets with higher spending power.
Regionally, Middle Eastern travellers continue to dominate inbound flows, with 13.1 million expected in 2025. The Asia-Pacific region follows with 9.1 million, while Africa contributes 5.4 million. European and North American markets remain smaller but are forecast to grow steadily, with 1.8 million and 1.1 million visitors respectively. The top five source countries remain Egypt, Pakistan, Bahrain, Kuwait, and India, reflecting both strong religious travel and the influence of diaspora connections.
The surge in visitor numbers is mirrored by rapid growth in the hospitality sector. International tourists are projected to spend 593 million nights in Saudi Arabia in 2025, up 5.9% from the previous year, while the average hotel occupancy rate will climb to 79%. The country’s hotel inventory is expanding to keep pace: Saudi Arabia is expected to have 3,320 hotels and nearly 488,000 rooms in 2025, with 3,700 hotels by 2029. The average length of stay is also increasing, reaching 28.2 nights in 2025, a sign that visitors are staying longer — whether for extended pilgrimages or new leisure offerings emerging across the Kingdom.
Competition within the Gulf region remains intense. The United Arab Emirates and Qatar have already established themselves as leaders in luxury, business, and coastal tourism. Yet Saudi Arabia’s advantage lies in its diverse tourism landscape, combining rich cultural heritage, sacred sites, vast natural beauty, and an expanding calendar of global events. The upcoming Expo 2030 in Riyadh and FIFA World Cup 2034 will provide powerful platforms to showcase this transformation to the world.
However, challenges remain. The sector’s expansion depends partly on oil revenues, and any significant drop in prices could tighten budgets and delay projects. Authorities have already begun reallocating some resources, prioritising flagship developments in Riyadh and the Red Sea region while slowing others elsewhere. Nevertheless, with massive public backing, improved infrastructure, and a fast-evolving private tourism ecosystem, Saudi Arabia’s long-term trajectory appears firmly upward.
What began as a vision is now an unfolding reality. The Kingdom’s tourism sector is reshaping not only how the world sees Saudi Arabia, but also how Saudis themselves experience their cities, coasts, and deserts. If the momentum continues, the country’s transformation from a pilgrimage destination to a global tourism powerhouse will stand as one of the most striking success stories of the coming decade.
…
Read also: Where “elite” Saudis go, what they expect — and how that shapes luxury destinations
