Saudi Arabia’s tourism sector has recorded notable growth, particularly in its hotel industry, as government initiatives and infrastructure investments support rising visitor numbers.

Since the launch of the National Tourism Strategy in 2016, the country has seen a surge in Revenue Per Available Room (RevPAR), placing it among the top five performing countries in the Middle East and Africa.

Government initiatives drive tourism growth

Legislative reforms and strategic investments in key cities including Riyadh, Jeddah, Makkah, Madinah, and the Dammam Metropolitan Area have boosted tourism’s contribution to GDP.

Data from the Ministry of Tourism shows international visitor numbers have grown faster than domestic arrivals since the introduction of the tourist visa in 2019, highlighting the success of policy measures aimed at diversifying the economy.

Infrastructure projects enhance connectivity

Major infrastructure upgrades, such as expansions of King Salman International Airport and King Abdulaziz International Airport, alongside developments like the Riyadh Metro and the Haramain High-speed Railway, have strengthened domestic and international connectivity.

These projects are expected to facilitate easier access to key destinations, supporting Saudi Arabia’s ambition to become a regional tourism hub.

Investment opportunities in tier two cities

While tier one cities remain the primary focus of hotel development, emerging tier two cities now account for 23% of visitor numbers.

The Saudi government has established funding programmes, including the Tourism Development Fund, to encourage private investment in these underserved markets.

Analysts suggest these incentives could significantly increase the sector’s yield and attract further international interest in the coming years.

This growth trajectory positions Saudi Arabia as a leading destination for both tourists and investors, with ongoing development aligning closely with the Vision 2030 objectives.