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 nine percent of the country’s gross domestic product (GDP) by 2025.

Hotel demand post COVID-19

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 2022, 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.

Hotel investments

The high spending of international guests is attracting investments. Mecca, Riyadh, and Dammam/Al Khobar were among the regions with the highest average daily revenue worldwide in 2018, attracting interest from investors. Most of the 48 planned hotel development projects in Riyadh were expected to be completed by 2023 at the latest. In 2022, more than 50 percent of the hotel projects were either under construction or in the pre-opening phase.
This text provides general information. Statista assumes no liability for the information given being complete or correct. Due to varying update cycles, statistics can display more up-to-date data than referenced in the text.
Published by Salma Saleh, Aug 12, 2022

Key insights

Most popular accommodation type for tourists in Saudi Arabia
Hotels
Share of 5-star hotel bookings in Saudi Arabia
50%
Forecasted revenue of accommodation services in Saudi Arabia in 2024
5.87bn USD
Get more insights

Editor’s Picks Current statistics on this topic

Number of hotels and similar establishments in Saudi Arabia from 2008 to 2020 (in 1,000s)

Holiday Activities

Number of hotels in Saudi Arabia 2008-2020

Distribution of hotel bookings in Saudi Arabia in June 2022, by hotel class

Accommodation

Distribution of hotel bookings Saudi Arabia 2022, by hotel class

Value of construction contract awards in Saudi Arabia in 2022, by project (in billion U.S. dollars)

Building Construction

Value of awarded construction contracts in Saudi Arabia in 2022, by project

Related topics

Recommended

3

Recommended statistics

Regional overview

5

Regional overview

Hotel supply

4

Hotel supply

Hospitality indicators

6

Hospitality indicators

Investments

7

Investments

Further reportsGet the best reports to understand your industry

Contact

Get in touch with us. We are happy to help.
Statista Locations
Contact Meredith Alda
Meredith Alda
Sales Manager– Contact (United States)
Email
support@statista.com

Mon - Fri, 9am - 6pm (EST)

Contact Yolanda Mega
Yolanda Mega
Operations Manager– Contact (Asia)
Email
asia.support@statista.com

Mon - Fri, 9am - 5pm (SGT)

Contact Kisara Mizuno
Kisara Mizuno
Senior Business Development Manager– Contact (Asia)
Email
support.japan@statista.com

Mon - Fri, 10:00am - 6:00pm (JST)

Contact Lodovica Biagi
Lodovica Biagi
Director of Operations– Contact (Europe)
Email
eu.support@statista.com

Mon - Fri, 9:30am - 5pm (GMT)

Contact Carolina Dulin
Carolina Dulin
Group Director - LATAM– Contact (Latin America)
Email
latam@statista.com

Mon - Fri, 9am - 6pm (EST)

Menu