Hotel industry in Saudi Arabia - statistics & facts
Tourism is a critical engine of Saudi Arabia's long-term economic prosperity. The Saudi Vision 2030 establishes a framework for economic diversification away from the Kingdom’s conventional oil-based economic system. Saudi Arabia's Vision 2030 involves several large-scale tourism projects referred to as 'Giga projects'. It was launched in 2018 by the Saudi Public Investment Fund with the goal of transforming Saudi Arabia into one of the world's leading tourist destinations. Tourism initiatives in the works include Amaala, Aseer Development Project, Diriyah Gate, Neom, The Red Sea Project, and Qiddiya. The Saudi tourism industry was projected to double the number of tourists to more than 15 million by 2025, compared to 2021. Tourism was expected to contribute an estimated 86 billion U.S. dollars to the country’s gross domestic product (GDP) by 2025.
Saudi Arabia introduced a new visa regime in September 2019, which granted e-visas and visas on arrival to visitors from 49 countries. The expansion of the Kingdom’s visa categories from exclusively business visas, expatriate worker visas, and religious pilgrims to Mecca and Madinah to include different types of tourism is expected to boost international and domestic tourism in Saudi Arabia. In 2021, the number of tourist trips for leisure and visits to friends and family exceeded religious tourism for both international visitors and domestic visitors.
Saudi Arabia's hotel boom
Saudi Arabia's hotel industry is on the mend following the COVID-19 pandemic and its repercussions. Events such as the Riyadh Season and increased consumer confidence in travel have boosted both Riyadh and Jeddah as significant travel centers in the Kingdom. This is predicted to have a persistent favorable influence on hotel demand in the upcoming years, with Makkah experiencing the biggest rise in hotel occupancy rate across the Kingdom, followed by Madinah and Riyadh.Saudi Arabia introduced a new visa regime in September 2019, which granted e-visas and visas on arrival to visitors from 49 countries. The expansion of the Kingdom’s visa categories from exclusively business visas, expatriate worker visas, and religious pilgrims to Mecca and Madinah to include different types of tourism is expected to boost international and domestic tourism in Saudi Arabia. In 2021, the number of tourist trips for leisure and visits to friends and family exceeded religious tourism for both international visitors and domestic visitors.
