RIYADH: Saudi Arabia’s tourism sector continues to thrive, with spending surging by 27.25% year-on-year in the three months leading up to September, reaching SR25.05 billion ($6.68 billion), according to data from the Saudi Central Bank (SAMA).
Growing Travel Expenditures
Outbound travel also saw a notable rise, with spending by Saudi residents traveling abroad increasing by 21.79%, totaling SR26.33 billion. Meanwhile, the travel balance of payments recorded a deficit of SR1.28 billion, marking a 33.83% improvement compared to the same period last year. For the first nine months of 2024, the balance showed a SR40.17 billion surplus, reflecting a 4% increase from 2023.
Aligning with Vision 2030
These trends are in line with Saudi Arabia’s Vision 2030, which aims to position the Kingdom among the top 10 global tourist destinations by the end of the decade. Recent initiatives, including hosting high-profile entertainment events and art exhibitions, underscore Saudi Arabia’s commitment to transforming its tourism landscape.
In addition, the introduction of the “Visiting Investor” visa is expected to attract a diverse range of international visitors, reinforcing the country’s ambition to become a key global tourism hub.
Seasonal Trends in Tourism Spending
Tourism spending in Saudi Arabia experiences seasonal variations, influenced by cultural, religious, and climate-related factors. Religious tourism, which accounted for 42% of all inbound visits in 2023, continues to play a major role in the sector’s growth.
Key periods of increased tourism spending:
- Hajj & Ramadan: A surge in visitors during these holy months drives significant increases in spending.
- Milder months: Leisure travelers and those visiting family tend to schedule trips when temperatures are more favorable.
- Q2 Peak: In 2024, Q2 spending reached SR47.6 billion, following a similar trend in 2023 (SR48.93 billion).
- Summer Decline: Expenditures dropped to SR19.68 billion in Q3 2023, coinciding with peak summer heat.
Saudi Arabia’s Most Visited Destinations
According to the Ministry of Tourism’s annual report, Makkah remained the most visited city in 2023, welcoming 15.4 million tourists, primarily for religious purposes.
Other major destinations include:
- Madinah: 9.6 million visitors, serving as a secondary stop for many pilgrims.
- Riyadh: 2.8 million visitors, solidifying its role as a business and cultural hub.
Breakdown of Tourism Spending
The tourism sector’s economic impact is driven by various travel motivations:
- Religious Tourism: 55% of total spending (SR77.4 billion)
- Visiting Family & Relatives: 19% (SR26.3 billion)
- Leisure & Entertainment: SR21.6 billion
Saudi Arabia’s Tourism Future
With strategic investments in tourism infrastructure, cultural events, and international collaborations, Saudi Arabia is on track to sustain its rapid tourism growth. As the Kingdom moves closer to its Vision 2030 objectives, initiatives such as enhanced travel connectivity, digital innovation, and diversified tourist experiences will further bolster its appeal on the global stage.
Stay tuned for more updates on Saudi Arabia’s dynamic tourism sector!
