Saudi Arabia’s tourism sector has witnessed an extraordinary 107 percent increase in hotel rooms year-on-year in the third quarter of 2024, according to official data. This remarkable growth highlights the Kingdom’s commitment to expanding its hospitality industry and positioning itself as a premier global travel destination.
Hospitality Industry Expansion
The number of hotel rooms in Saudi Arabia skyrocketed from 214,600 in Q3 2023 to an impressive 443,200 in Q3 2024. Additionally, the number of room licenses more than doubled, surpassing 3,950 permits compared to 2,000 in the same period last year.
This expansion aligns with Saudi Arabia’s ambitious Vision 2030 strategy, which aims to attract 150 million visitors annually by the end of the decade. The initiative is a crucial part of the country’s economic diversification efforts, reducing dependence on oil and fostering sustainable growth in the tourism sector.
Massive Investments and Infrastructure Developments
Saudi Arabia has committed to investing over $1 trillion in new attractions and infrastructure. Among these initiatives are the Red Sea Project and NEOM, a $500 billion futuristic mega-city that will redefine luxury tourism and urban living.
In addition, the government has introduced an accessible e-visa program to streamline international travel and boost inbound tourism.
Job Creation and Economic Impact
By prioritizing heritage sites, luxury resorts, and cultural experiences, the Kingdom aims to generate over 1 million tourism-related jobs. This development will significantly contribute to economic growth, reinforcing Saudi Arabia’s influence on the global travel landscape.
Future Growth and Private Sector Participation
In February 2024, Saudi Arabia’s Minister of Tourism, Ahmed Al-Khateeb, unveiled plans to add 250,000 more hotel rooms by 2030, with 75,000 of them developed through private sector contracts. The country had already reached 280,000 hotel rooms by the end of 2023, demonstrating steady progress toward its 2030 goal of approximately 550,000 rooms.
Record-Breaking Visitor Numbers
The Kingdom has exceeded its initial tourism target, reaching 100 million visitors well ahead of schedule. This includes 77 million domestic tourists and 27 million international travellers, proving Saudi Arabia’s growing appeal as a top-tier global destination.
With a 10 percent contribution to GDP and a 7 percent contribution to non-oil GDP, the tourism sector continues to be a key driver of Saudi Arabia’s economic transformation.
Conclusion
Saudi Arabia’s rapid tourism expansion is reshaping the global travel landscape. With record-breaking growth in hospitality, substantial investments in infrastructure, and a clear vision for the future, the Kingdom is set to become one of the world’s leading tourism hubs.
Stay tuned for more updates on Saudi Arabia’s evolving tourism sector and its journey toward Vision 2030!
