The Kingdom of Saudi Arabia’s tourism sector continues to achieve remarkable growth, as incoming tourist numbers surged by 27% in the first nine months of 2024, compared to a 14% increase during the same period last year, according to Minister of Tourism Ahmed Al Khateeb. Speaking at the 2025 Budget Forum in Riyadh, Al Khateeb emphasised the sector’s significant progress toward realizing the goals of Vision 2030.
The minister highlighted that rural tourism is gaining traction, with increasing demand reported across the Kingdom’s diverse regions. By the end of 2023, the tourism sector contributed 5% to the gross domestic product (GDP), with ambitions to reach a 10% contribution by 2030, according to the Ministry.
Al Khateeb noted the economic impact of the sector, revealing a surplus of over SAR 41 billion (approximately USD 11.07 billion) in the balance of payments during the first half of 2024, compared to SAR 48.1 billion (approximately USD 12.99 billion) for the entirety of 2023. This represents a major shift from 2018 when the balance recorded a deficit of SAR 10 billion (approximately USD 2.7 billion).
Major employment growth
Employment within the tourism sector has also seen significant growth, with the number of jobs increasing from 750,000 to 960,000, while localization in the hospitality sector reached 35%. The Ministry of Tourism, under the leadership of HRH the Crown Prince, is heavily investing in the development of local talent.
The minister noted an annual allocation of SAR 375 million (approximately USD 100.88 million) for the qualification and training of up to 100,000 Saudis. This includes over 10,000 opportunities at world-class institutes, preparing Saudis for leadership roles within the industry.
Finance Minister says progress is being made across multiple fronts
At the forum, Saudi Minister of Finance Mohammed Aljadaan conveyed his deep gratitude to the Custodian of the Two Holy Mosques and His Royal Highness the Crown Prince for their steadfast support and visionary leadership in advancing the Kingdom’s economic and financial objectives. He emphasised that this guidance has been instrumental in generating significant economic, social, and environmental benefits while leveraging Saudi Arabia’s resources and competitive advantages. The minister noted that these achievements are reflected in the Kingdom’s progress across multiple fronts.
Aljadaan highlighted that the Government’s ongoing economic transformation is rooted in diversification, innovation, and strategic investments in high-potential sectors. He affirmed that the outcomes thus far demonstrate the success of the Kingdom’s economic and fiscal reforms, which are designed to foster inclusive growth and modernize public financial management. These efforts aim to enhance the quality of services delivered to citizens, residents, and visitors alike.
Looking ahead, Aljadaan outlined plans for the FY 2025 Budget, which prioritizes increased strategic spending on development projects aligned with sectoral strategies and Vision 2030 programmes. He said the Government remains committed to implementing initiatives that yield sustainable economic, social, and environmental returns. He added that efforts would focus on bolstering the business environment to attract greater local and international investments, improving the Kingdom’s trade balance, and fostering a more diverse economic landscape.
The Minister highlighted how Saudi Arabia’s economic and fiscal reforms have significantly enhanced key financial and economic indicators, representing a pivotal step in the Kingdom’s journey toward economic diversification and financial stability. He emphasized that preliminary forecasts for FY 2024 underscore the growing role of non-oil activities in driving total real GDP growth. This progress, he explained, stems from ongoing initiatives and reforms designed to expand the private sector’s contribution to GDP, positioning it as the primary engine of the Kingdom’s economic growth.
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