Saudi Arabia took the spotlight at Arabian Travel Market (ATM) 2025 with the launch of VIDEC’s landmark Saudi Arabia Travel Market Sizing & OTA Benchmarking Study, 2019–2028. The report delivers the most detailed portrait yet of the Kingdom’s fast-growing travel and tourism sector, underscoring Saudi Arabia’s emergence as one of the most dynamic and ambitious players in global tourism.
Powered by its Vision 2030 strategy, Saudi Arabia is transforming itself from an oil-dependent economy into a diversified hub of investment, innovation, and global connectivity. With a GDP of US$1.1 trillion and a record $25.5 billion in foreign direct investment in 2023, the Kingdom is building the foundations of a world-class tourism industry designed to welcome 150 million visitors annually by 2030. Massive investments are flowing into megaprojects like NEOM, the Red Sea Project, Amaala, AlUla, and Diriyah, alongside major international events such as the AFC Asian Cup 2027 and World Expo 2030.
According to the report, Saudi Arabia’s travel market has expanded dramatically in just a few years. Inbound religious tourism surged from 9 million visitors in 2019 to 15 million in 2023, including 13.5 million Umrah pilgrims. Leisure tourism has seen even more spectacular growth, multiplying 5.5 times between 2019 and 2023 to reach 6.2 million visitors, while domestic trips soared from 48 million to 78 million. This momentum has been propelled by major reforms, such as the introduction of e-visas for over 60 countries, and by Saudi Arabia’s fast-expanding infrastructure, from airports to rail and highways.
The air travel market is a pillar of this expansion. Saudi Arabia’s total air market is expected to grow from $7.1 billion in 2024 to $11.3 billion by 2028, capturing 44% of the region’s total air market. Domestic air travel, valued at $3.2 billion, remains a cornerstone of the market, while international air travel is booming, driven by the global ambitions of Saudia and the launch of Riyadh Air, which plans to connect Saudi cities to over 100 global destinations by 2030. International air bookings alone are forecast to grow at a CAGR of 14.1% through 2028.
VIDEC report underlines importance of young people in KSA
At the same time, Saudi Arabia’s young, digitally fluent population — with over 60% under the age of 30 and nearly universal internet access — has made the country a hotbed for online travel innovation. Online air bookings have surged to 54% market penetration in 2024, with OTAs thriving. Local champions like Almosafer, Almatar, and Wego are leading the charge, with Almosafer commanding 61% of OTA air gross booking value. Despite recent policy shifts directing official bookings toward Saudia, OTA air GBV is projected to reach $2.1 billion in 2024, while airline online-direct bookings are forecast to hit $2.7 billion by 2028, supported by innovations like AI, chatbots, and loyalty programme integrations.
The hotel market is even larger, according to the VIDEC report, valued at $11 billion in 2024 and accounting for 60% of the GCC hotel market. Domestic travellers drive roughly 70% of Saudi hotel stays, but outbound hotel bookings are poised for robust growth at a CAGR of 8.4% through 2028, reaching $3.5 billion as Saudi travellers increasingly seek premium international experiences. OTAs, notably Booking.com and local players like Almosafer, are gaining ground in the hotel segment as well.
Saudi Arabia’s surge in travel is closely tied to its fintech revolution. In 2023, 64% of all payments were digital, with debit and credit cards making up the bulk of transactions. Emerging buy-now-pay-later (BNPL) services such as Tamara, Tabby, and Spotti are reshaping last-minute travel spending and appealing to younger consumers eager for flexibility.
The country’s aviation sector is soaring, says VIDEC, with 86 million passengers in 2023 and a strong mix of low-cost carriers like flynas and flyadeal alongside full-service airlines like Saudia. Upcoming infrastructure investments, including the colossal King Salman International Airport and the Riyadh Air network, will cement Saudi Arabia’s role as a global aviation hub, connecting East and West. Importantly, Saudi Arabia’s tourism ambitions are anchored in sustainability and cultural stewardship. AlUla is a global model for regenerative tourism, while projects across the Asir Mountains, Red Sea, and Diriyah seek to blend cutting-edge luxury with heritage preservation and environmental sensitivity.
A booming regional picture for the GCC
Complementing Saudi Arabia’s growth, the broader GCC region is thriving. According to the ATM Trends Report by Tourism Economics, global travel is on track to break records in 2025, with the Middle East surpassing global averages. International visitors are projected to account for 85% of regional accommodation growth, underscoring the importance of cross-border travel. At ATM, Trip.com Group highlighted rising demand for entertainment, educational, and elderly travel, while VIDEC’s benchmarking of the UAE, Saudi Arabia, and India revealed booming online air bookings, OTA market share, and innovation in distribution channels. The UAE’s total air market, for example, is forecast to reach $5.4 billion by 2028, and the planned unified GCC tourist visa promises to unlock a powerful wave of regional tourism.
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Photo top of page courtesy of ATM.
