Distribution of inbound tourist trips Saudi Arabia 2023, by purpose of visit
In 2023, around 55 percent of inbound tourists who went to Saudi Arabia traveled mainly for religious purposes. In comparison, almost ten percent of inbound visitors to the Kingdom had business matters as the main reason for their trip.
Tourism and economic diversification
Among the economic diversification efforts in Saudi Arabia, which aim to reduce oil dependency, have been initiatives to boost tourism. While the share of GDP attributed to oil and gas production is still high, the travel and tourism contribution to GDP was forecast to grow, reaching a GDP contribution of around 17 percent by 2032. Saudi Arabia was the country with the highest number of international tourist arrivals in the Middle East in 2022, attracting over 18 million tourists. Efforts to make the Kingdom a global tourism hub and appeal to a wider range of interests include ease of travel by introducing e-visas, developing projects like the Red Sea, and hosting cultural events like Riyadh Season.
Future of hospitality in Saudi Arabia
To achieve the necessary economic and hospitality prestige to attract and welcome the aimed 100 million tourists by 2030, Saudi Arabia has unfolded a series of megaprojects and hospitality industry infrastructure plans. The breakdown of hotel rooms in the pipeline in Saudi Arabia between 2023 and 2028 shows that upper-upscale and luxury hotels account for around 37 percent of rooms, indicating an inclination toward focusing on high-end services. This can also be seen by looking at project-specific values of construction contract awards in 2022, where projects like Neom and Diriya Gate mostly target affluent individuals. Nevertheless, the promotion of budget-friendly activities such as exploring natural landscapes, beaches, or cultural heritage sites that attract cost-conscious tourists is not uncommon.
