Saudi Arabia Travel & Tourism Market By Product/Service Offering (Ticket Reservation, Hotel Booking, Holiday/Tour Packages, Travel Insurance, Others), By Type (Domestic, Inbound, Outbound), By Purpose of Visit (Business, Leisure & Recreation, Education, Medical, Social Activity, Others), By Tourist Profile (Saudians, Foreign Nationals),By Region, Competition, Forecast & Opportunities, 2020-2030F

Market Overview

Saudi Arabia Travel & Tourism market was valued at USD 53.87 Billion in 2024 and is expected to grow to USD 100.23 Billion by 2030 with a CAGR of 10.90%. The Saudi Arabia Travel & Tourism market is experiencing steady growth, driven by driven by the Kingdom’s Vision 2030 initiative, which aims to diversify the economy and reduce dependency on oil. Major investments in infrastructure, including airports, hotels, entertainment venues, and transportation networks, are enhancing the country’s appeal to both domestic and international tourists. Religious tourism remains a key driver, with millions visiting Mecca and Medina annually for Hajj and Umrah. Also, the promotion of cultural heritage, entertainment, and adventure tourism is attracting a wider demographic. Strategic partnerships, relaxed visa regulations, and global marketing campaigns are further boosting tourist inflow. As the government prioritizes tourism as a pillar of economic development, the sector is poised for sustained expansion and increased contribution to GDP.

Key Market Drivers

Rising Foreign Visit Across the Region

Saudi Arabia's Travel & Tourism sector is witnessing unprecedented growth, significantly driven by a surge in foreign visitors. As a part of this, according to a recent study as of 2024, the Kingdom welcomed a record 30 million international tourists, up from 27.5 million in 2023, marking a substantial increase in global interest. This momentum is part of the broader Vision 2030 strategy, which aims to diversify the economy beyond oil by investing nearly $1 trillion into tourism projects. Key initiatives include the development of luxury resorts, entertainment hubs, and cultural landmarks, enhancing the country's appeal to a diverse range of travelers. The introduction of streamlined visa processes and the expansion of international flight routes have further facilitated this influx. As a result, tourism's contribution to the GDP has seen a notable rise, underscoring its growing significance in the national economy. With continued efforts to enhance infrastructure and promote cultural heritage, Saudi Arabia is poised to solidify its position as a leading global tourist destination.

Rising Government Support to Strengthen the Tourism Sector

Saudi Arabia's Travel & Tourism sector is experiencing significant growth, bolstered by robust government support aligned with the Kingdom's Vision 2030 initiative. As a part of this, as of March 2024, Saudi Arabia has secured approximately $13 billion in private sector investment for its tourism industry as part of its strategy to share the expenses related to establishing itself as a new travel destination. According to Princess Haifa M. Al Saud, the Kingdom’s vice minister for tourism, these investments are expected to contribute an additional 150,000 to 200,000 hotel rooms over the next two years. To facilitate investment, the Tourism Development Fund, established with $4 billion in capital, provides funding to projects and enhances private sector participation. Also, initiatives like the "Hospitality Investment Enablers" and the forthcoming Tourism Investment One Stop Shop streamline bureaucratic procedures and improve access to government-owned land, making it easier for investors to engage in the tourism sector. These comprehensive efforts underscore the government's commitment to diversifying the economy and positioning Saudi Arabia as a premier global tourist destination.

Massive Infrastructure Investments

Saudi Arabia's Travel & Tourism sector is undergoing a transformative expansion, propelled by substantial infrastructure investments under the Vision 2030 initiative. As a part of this, as of April 2025, the National Infrastructure Fund plays a key role as a partner in financing major infrastructure projects across the Kingdom. It focuses on facilitating and accelerating strategic infrastructure developments that align with the objectives of Saudi Vision 2030, while also aiming to improve the quality of life for individuals and communities throughout the country. The Kingdom has earmarked over $1 trillion to diversify its economy and position itself as a premier global tourist destination. Key projects include NEOM, a $500 billion futuristic city integrating smart technologies and sustainable living; the Red Sea Project, spanning 28,000 square kilometers with plans for 50 luxury resorts powered entirely by renewable energy; and Qiddiya, a $36 billion entertainment hub featuring theme parks, sports arenas, and cultural venues. Also, the Diriyah Gate project aims to restore the historic city of Diriyah, enhancing cultural tourism. These developments are complemented by the construction of 362,000 new hotel rooms by 2030 and the establishment of new airports and transportation networks. Collectively, these initiatives are set to attract 70 million international visitors annually by 2030, significantly boosting the tourism sector's contribution to the national GDP.

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Key Market Challenges

Extreme Climate Conditions

Extreme climate conditions present a significant challenge to Saudi Arabia's burgeoning Travel & Tourism sector. The Kingdom's arid climate, characterized by soaring temperatures, has been exacerbated by climate change, leading to more frequent and intense heatwaves. For instance, during the 2024 Hajj pilgrimage, temperatures in Mecca soared above 50°C, resulting in over 1,300 deaths, predominantly among unregistered pilgrims lacking access to cooling facilities. Such extreme heat not only endangers the health and safety of tourists but also strains infrastructure and increases operational costs due to heightened demand for cooling and water resources. Also, the necessity to shift tourism activities to cooler months may lead to seasonal imbalances, affecting the sustainability of tourism-dependent businesses. To mitigate these challenges, Saudi Arabia must invest in climate-resilient infrastructure, implement effective heat management strategies, and promote sustainable tourism practices to ensure the sector's long-term viability.

Underdeveloped Hospitality Workforce

Saudi Arabia's Travel & Tourism sector is experiencing rapid growth, yet it faces a significant challenge: an underdeveloped hospitality workforce. Despite the Kingdom's ambitious Vision 2030 goals, which aim to create 1.6 million tourism jobs by 2030, the current workforce lacks sufficient skilled professionals, particularly in technical roles such as culinary arts, food and beverage services, and sales. This shortage is compounded by the fact that only 0.3% of higher education enrollments are in tourism and hospitality programs, indicating a limited pipeline of qualified graduates.  Cultural perceptions also play a role; hospitality roles are often viewed as low-status jobs, deterring many Saudis from pursuing careers in the sector. Also, while initiatives like the National Occupational Skills Standards (NOSS) and partnerships with international institutions aim to bridge the skills gap, the reliance on expatriate workers remains high, with 75% of the tourism workforce being non-Saudi nationals. To address these challenges, Saudi Arabia is investing in vocational training programs and educational reforms to attract and retain local talent in the hospitality industry. However, aligning educational outcomes with industry needs and changing societal perceptions are crucial steps to ensure a sustainable and skilled domestic workforce that can support the Kingdom's tourism ambitions.

Key Market Trends

Rising Adoption of Flexible Payment Option

The adoption of flexible payment options is rapidly transforming Saudi Arabia's Travel & Tourism sector, aligning with the Kingdom's Vision 2030 goal to achieve 70% non-cash transactions by 2025. A significant contributor to this shift is the Buy Now, Pay Later (BNPL) model, which has gained substantial traction among consumers seeking interest-free installment plans. Local fintech platforms like Tamara and Tabby have partnered with major retailers and e-commerce platforms, facilitating seamless travel bookings and purchases. As a result, the BNPL market in Saudi Arabia is projected to grow from $1.48 billion in 2025 to $2.36 billion by 2030, with a compound annual growth rate (CAGR) of 9.7%. Simultaneously, digital wallets such as STC Pay, Mada Pay, and Apple Pay are experiencing widespread adoption. In March 2025, e-commerce sales via Mada cards surged by 73.4% year-on-year, reaching a record SR27.55 billion ($7.34 billion). This growth is supported by the Saudi Central Bank's initiatives to integrate digital wallets with global platforms like Google Pay, enhancing accessibility and convenience for travelers. These developments indicate a significant shift towards a cashless economy, with consumers increasingly favoring flexible, secure, and convenient payment methods for their travel and tourism expenditures.

Expansion of Budget Accommodations

Saudi Arabia's Travel & Tourism sector is experiencing a significant transformation, with a notable expansion in budget accommodations. This shift is driven by the country's Vision 2030 initiative, aiming to diversify the economy and enhance tourism offerings. In line with this vision, global hotel chains are increasing their presence in the Kingdom's midscale and economy segments. For instance, Wyndham Hotels & Resorts plans to open 100 Super 8 hotels across Saudi Arabia over the next decade, addressing the growing demand for affordable lodging options. The rise in budget accommodations is further supported by a surge in domestic tourism. In 2024, domestic flight bookings increased by 45%, and room night bookings saw a 39% rise. Families and groups are opting for budget-friendly stays, with bookings in three-star or lower hotels representing 35% of total bookings, a segment that has grown 100% for these traveler groups. This trend reflects a broader shift towards value-conscious travel, with budget accommodations playing a pivotal role in accommodating the influx of tourists and supporting the Kingdom's ambitious tourism goals.

Surge in Leisure Tourism

Saudi Arabia's leisure tourism sector has experienced a remarkable transformation, with a 656% surge in international visitors since 2019, totaling 17.5 million in 2024. This growth positions the Kingdom as a leader in tourism expansion among G20 nations, achieving a 73% increase in international arrivals over the first seven months of 2024 compared to 2019. The introduction of the first tourism visa in 2019 marked a pivotal moment for Saudi Arabia's travel industry, significantly boosting international tourism. Under Vision 2030, the Kingdom aims to welcome 100 million tourists by 2030—a goal achieved seven years ahead of schedule in 2023. This surge is supported by substantial investments in infrastructure, including the development of luxury resorts, entertainment hubs, and cultural sites. Projects like The Red Sea Project and Soudah Peaks are designed to attract high-end travelers and diversify the tourism offerings. The Kingdom's commitment to enhancing its tourism sector is further evidenced by its participation in international events such as the Arabian Travel Market 2025, where it showcased its diverse destinations and investment opportunities. This strategic focus on leisure tourism is expected to continue driving economic growth and positioning Saudi Arabia as a premier global tourist destination.

Segmental Insights

Purpose of Visit Insights

Business dominated the Saudi Arabia Travel & Tourism market, driven by the Kingdom’s role as a major regional economic hub. The presence of large-scale industries such as oil and gas, petrochemicals, finance, and construction fuels frequent corporate travel. Also, Saudi Arabia hosts numerous international conferences, exhibitions, and trade fairs, attracting business professionals worldwide. The government’s focus on economic diversification under Vision 2030 has further stimulated business travel by promoting sectors like technology, entertainment, and infrastructure development. Enhanced connectivity through expanding airports and airlines, alongside improved hospitality services tailored for corporate clients, supports this trend. Despite the recent surge in leisure tourism, business travel remains a key pillar of the market, contributing significantly to hotel occupancy rates, air traffic, and overall tourism revenue in the Kingdom.

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Regional Insights

Western region dominated the Saudi Arabia Travel & Tourism market, due to its religious and cultural significance. It is home to the holy cities of Mecca and Medina, attracting millions of Muslim pilgrims annually for Hajj and Umrah, making religious tourism the region’s cornerstone. The influx of pilgrims drives demand for extensive hospitality, transportation, and retail services. Also, the Western region benefits from well-developed infrastructure, including airports like King Abdulaziz International Airport in Jeddah, facilitating international and domestic access. Also, the Northern & Central region's is driven through a mix of cultural heritage, business activities, and emerging leisure attractions. Riyadh, the capital city in the Central region, serves as the country’s political and economic hub, hosting numerous conferences, corporate events, and government functions that boost business travel.

Recent Developments

• In January 2025, Hilton and the Saudi Tourism Authority (STA) have entered into a strategic partnership to promote the wide range of travel experiences available in Saudi Arabia through a dynamic creative content campaign. In a groundbreaking collaboration, a series of short films and photographs have been innovatively produced to showcase and promote Riyadh, Jeddah, Al Ula, Makkah, and Madinah.
• In May 2025, The Saudi Tourism Authority (STA) and Accor, a global leader in hospitality, have formalized a landmark memorandum of understanding (MoU) to collaborate on marketing initiatives, enhancing guest experiences, and executing worldwide campaigns. Signed at the Arabian Travel Market 2025 in Dubai, this MoU represents a strategic alliance aimed at leveraging Saudi Arabia’s rising status as a premier global tourism destination.

Key Market Players  

• Saudi Telecom Company
• Etihad Airways PJSC
• Al Riyadh Travel and Tourism Company
• Seera Group Holding Co
• Red Sea Global
• SIAD Holding Co
• Sana Tourism
• Zahid Travel Group
• Ace Travel Group
• Rezayat Group

Report Scope:

In this report, the Saudi Arabia Travel & Tourism Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

•   Saudi Arabia Travel & Tourism Market, By Product/Service Offering:

o   Ticket Reservation

o   Hotel Booking

o   Holiday/Tour Packages

o   Travel Insurance

o   Others

• Saudi Arabia Travel & Tourism Market, By Type:

o   Domestic

o   Inbound

o   Outbound

• Saudi Arabia Travel & Tourism Market, By Purpose of Visit:

o   Business

o   Leisure & Recreation

o   Education

o   Medical

o   Social Activity

o   Others

• Saudi Arabia Travel & Tourism Market, By Tourist Profile:

o   Saudians

o   Foreign Nationals

• Saudi Arabia Travel & Tourism Market, By Region:

o   Eastern

o   Western

o   Northern & Central

o   Southern

Competitive Landscape

Company Profiles: Detailed analysis of the major companies presents in the Saudi Arabia Travel & Tourism Market.

Available Customizations:

Saudi Arabia Travel & Tourism Market report with the given market data, TechSci Research offers customizations according to a company's specific needs. The following customization options are available for the report:

Company Information

• Detailed analysis and profiling of additional market players (up to five).

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