Saudi Arabia’s Luxury Hotel Push Supports Record Tourist Arrivals

Saudi Arabia is making significant strides in the hospitality sector, focusing on luxury offerings to cater to the nearly 150 million visitors anticipated annually. This trend indicates the Kingdom’s commitment to transforming its tourism landscape and showcasing its evolving global presence.

Expansion of Luxury Accommodations

The hospitality industry in Saudi Arabia is growing rapidly, with approximately 80% of new hotel supply targeting upscale and luxury categories. This strategy aligns with the goals outlined in Vision 2030, which aims to develop a total of 362,000 hotel rooms by the conclusion of the decade. As of the first quarter of 2025, the Kingdom had already established 167,500 hotel rooms, with a remarkable 61% devoted to high-end accommodations. Plans are in place for an additional 99,500 rooms, with around 78% of these set to cater to the premium segment.

Faisal Durrani, a partner and head of research for Knight Frank in MENA, emphasized that “the focus on high-end hotel development plays to Saudi Arabia’s growing reputation as a luxury destination.” While pursuing this luxury growth, it’s also crucial to address the increasing demand for more modest accommodation options, which are essential for local tourism.

Tourism Revenue and Visitor Statistics

In 2024, Saudi Arabia attracted a staggering 127 million tourists, contributing 4.7% to the national GDP. This influx is vital to meeting the ambitious goal of achieving a 10% GDP contribution from tourism by 2030. International arrivals saw a notable rise of 9.5%, reaching 30 million. The Kingdom’s tourism expenditure also set a new record, climbing to approximately SAR153.61 billion ($40.9 billion), reflecting a 13.8% year-over-year increase, as reported by the Saudi Central Bank.

The ease of travel is enhanced by the introduction of an eVisa platform, which permits citizens from 66 countries, including the United States, United Kingdom, China, and Japan, to enter Saudi Arabia for various purposes such as leisure, Umrah, business events, and family visits. Accommodation options play a significant role in making this transition seamless, particularly for those wishing to explore the Kingdom.

Diverse Visitor Demographics

While religious tourism remains a cornerstone of travel in Saudi Arabia, the Kingdom is increasingly attracting a diverse mix of visitors. By the third quarter of 2024, leisure travelers constituted 30% of inbound travel, while visits to friends and family accounted for 24%. The balance also includes categories like business, education, and medical travel. The significance of religious pilgrimage remains paramount, comprising 26% of total visits.

Oussama El Kadiri, partner and head of hospitality, tourism, and leisure advisory in MENA, highlighted that significant global events such as Expo 2030, the Asian Games in 2029, and the FIFA World Cup in 2034 are pivotal moments for the Kingdom. These events are expected to draw an impressive 150 million visitors and showcase Saudi Arabia as a leading destination for culture, business, and sports.

Growth in Accommodation Infrastructure

In 2024, Saudi Arabia welcomed 1.8 million Hajj pilgrims and recorded 35.7 million Umrah pilgrims, with international participants representing a record 25% increase from 2023. Over 252,000 hotel rooms are presently in the pipeline for Makkah and Madinah, predominantly in the four- and five-star categories. Mega-projects like Rua Al Haram, Rua Al Madinah, and Masar Makkah are reshaping the future of religious tourism in the Kingdom.

Amar Hussain, associate partner and researcher for KSA, stated that “opening up Holy Cities to international investment is a pivotal move” — a strategy that aims to inject capital, enhance liquidity, and expedite project delivery. Accessible transportation to these religious hubs will propel the tourism sector, emphasizing the importance of reliable transfer solutions.

Conclusione

In summary, Saudi Arabia’s hospitality sector is committed to luxury development as it prepares for an unprecedented surge in visitor numbers. The diversification into various demographics highlights how integral tourism is to the Kingdom’s economic dreams. While high-end accommodations attract affluent travelers, a balanced approach incorporating modest options will support domestic travel.

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Whether you’re planning a pilgrimage or a leisurely visit to marvel at Saudi Arabia’s stunning luxury hotels, having reliable transportation is crucial. Personal experiences will always trump reviews, so consider hiring a car with a driver from verified providers at reasonable prices using GetTransfer.com. This service empowers you to make informed decisions, ensuring convenience and affordability. Don’t miss out on making your travel arrangements seamless—Prenota il tuo viaggio oggi!