arab travel and tourism industrial area

Skift Trend Report: Decoding the Saudi Arabian Travel and Tourism Industry

Decoding the saudi arabian travel and tourism industry.

Saudi Arabia has been making significant moves to open up its borders to international tourists. Investing in tourism infrastructure, prioritizing transformation of unreachable attractions into accessible hotspots, providing tourist visas for the first time, and changing restrictive rules for women such as once-mandatory abayas (robe-like black dresses) are just some of the steps taken to change the Kingdom’s perception on the world stage and make it a tourist destination. “Opening Saudi Arabia to international tourists is a historic moment for our country,” said tourism chief Ahmed Al-Khateeb, according to Arab News.

Though still nascent, the domestic and international inbound travel segments in Saudi Arabia have been slowly evolving. The Kingdom has been making visible efforts to improve its infrastructure, encourage private investment to provide travelers with more places to visit, create entertainment options, and relax rules that previously made Saudi Arabia impermeable. In sharp contrast, the outbound travel market is quite mature. Saudi Arabians travel all over the world on a frequent basis and are high spenders. If anything, they are increasingly aligning with world travel trends and becoming more nuanced in their choices.

These evolutions present an opportunity for travel brands around the world. For the first time, travel brands can not only grow their businesses by attracting more Saudi travelers but also by being present in Saudi Arabia. However, in order for travel brands to find the right investment opportunities, understand the cultural nuances of conducting business there, target the right travelers, and capitalize on the growth spurt in the Kingdom, a strategic partner with expertise and understanding of the region is key.

Seera Group, one of the largest travel and tourism groups in the Middle East, with 40 years of experience across various travel verticals including consumer travel, corporate and government travel, Hajj and Umrah travel, hospitality, car rental and most recently, destination management for Saudi Arabia, believes that the time for a change in Saudi Arabia is now. “Think about Manhattan in the early 1900s, Berlin’s transformation in the 1990s, and Dubai’s in the 2000s. That time is now for Saudi Arabia — to experience and drive unprecedented economic and social change,” said Ross McAuley, vice president of marketing for Seera Group. “And travel and tourism, to me, is both a key driver and beneficiary of that change.”

As Seera Group partners with Saudi Tourism and other international brands to tap into the potential of Saudi travel and tourism, SkiftX has partnered with the company to unearth some of the top trends and growth opportunities in the region.

In this report:

• The current state of the travel industry in Saudi Arabia
• The triggers for growth in the Kingdom’s travel industry
• The challenges that Saudi Arabia faces in driving tourism
• Understanding the nuanced needs of Saudi Arabia’s outbound travelers
• Saudi Arabia’s plan to grow domestic and international inbound travel beyond pilgrim and business trips

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Travel, Tourism & Hospitality

Tourism industry in Saudi Arabia - statistics & facts

Saudi arabia’s tourism revolution, entertainment and media fueling the tourism boom, key insights.

Detailed statistics

Total inbound tourist expenditure Saudi Arabia 2015-2022

Total inbound tourist expenditure Saudi Arabia 2021, by province

Share of tourist trips Saudi Arabia 2022, by purpose

Editor’s Picks Current statistics on this topic

Number of Hajj pilgrims in Saudi Arabia 1999-2023

Share of travel and tourism contribution to GDP in Saudi Arabia 2015-2032

Leading inbound travel markets from Middle East Saudi Arabia 2022

Further recommended statistics

Regional overview.

• Basic Statistic Inbound visitor growth in the Middle East 2011-2025
• Basic Statistic Outbound visitor growth in the Middle East 2011-2025
• Premium Statistic Targets of international tourist arrivals GCC 2023, by country
• Premium Statistic Expected revenue of hospitality industry in the GCC 2026, by country
• Premium Statistic Expected revenue of hospitality industry in the GCC 2021-2026, by country

Inbound visitor growth in the Middle East 2011-2025

Inbound visitor growth in the Middle East from 2011 to 2025

Outbound visitor growth in the Middle East 2011-2025

Outbound visitor growth in the Middle East from 2011 to 2025

Targets of international tourist arrivals GCC 2023, by country

Targets for international tourist arrivals in the Gulf Cooperation Council as of 2023, by country

Expected revenue of hospitality industry in the GCC 2026, by country

Forecasted share of the hospitality revenue in the Gulf Cooperation Council in 2026, by country

Expected revenue of hospitality industry in the GCC 2021-2026, by country

Forecasted revenue of the hospitality industry in the Gulf Cooperation Council in 2021 and 2026, by country (in billion U.S. dollars)

Economic indicators

• Premium Statistic Share of the GDP of the tourism sector in Saudi Arabia 2013-2028
• Premium Statistic Total inbound tourist expenditure Saudi Arabia 2015-2022
• Premium Statistic Outbound tourism expenditures Saudi Arabia 2018-2022
• Premium Statistic Domestic tourist expenditure Saudi Arabia 2018-2022
• Premium Statistic Distribution of inbound tourist spending Saudi Arabia 2022, by purpose of visit
• Premium Statistic Outbound tourist spending Saudi Arabia 2022, by purpose of visit

Share of the GDP of the tourism sector in Saudi Arabia 2013-2028

Share of the GDP of the tourism sector in Saudi Arabia from 2013 to 2028

Total inbound tourist expenditure in Saudi Arabia from 2015 to 2022 (in billion Saudi riyals)

Outbound tourism expenditures Saudi Arabia 2018-2022

Outbound tourism expenditures in Saudi Arabia from 2018 to 2022 (in billion Saudi Riyals)

Domestic tourist expenditure Saudi Arabia 2018-2022

Domestic tourist expenditure in Saudi Arabia from 2018 to 2022 (in billion Saudi riyals)

Distribution of inbound tourist spending Saudi Arabia 2022, by purpose of visit

Distribution of inbound tourist expenditure in Saudi Arabia in 2022, by purpose of visit

Outbound tourist spending Saudi Arabia 2022, by purpose of visit

Expenditure of outbound tourists from Saudi Arabia in 2022, by purpose of visit (in billion Saudi riyals)

Types of tourism

• Premium Statistic Distribution of inbound tourist trips Saudi Arabia 2022, by purpose of visit
• Premium Statistic Total inbound tourist trips Saudi Arabia 2022, by purpose
• Premium Statistic Number of leisure inbound tourist trips Saudi Arabia 2015-2022
• Premium Statistic Total outbound tourist trips in 2022, by purpose and nationality
• Premium Statistic Number of outbound leisure tourist trips Saudi Arabia 2022, by country
• Premium Statistic Total domestic tourist trips Saudi Arabia 2022, by purpose

Distribution of inbound tourist trips Saudi Arabia 2022, by purpose of visit

Distribution of inbound tourist trips to Saudi Arabia in 2022, by purpose of visit

Total inbound tourist trips Saudi Arabia 2022, by purpose

Total inbound tourist trips in Saudi Arabia in 2022, by purpose (in millions)

Number of leisure inbound tourist trips Saudi Arabia 2015-2022

Number of leisure inbound tourist trips in Saudi Arabia from 2015 to 2022 (in 1,000s)

Total outbound tourist trips in 2022, by purpose and nationality

Number of Saudi and non-Saudi outbound tourist trips in Saudi Arabia in 2022, by purpose (in 1,000s)

Number of outbound leisure tourist trips Saudi Arabia 2022, by country

Number of outbound leisure tourist trips from Saudi Arabia in 2022, by destination country (in thousands)

Total domestic tourist trips Saudi Arabia 2022, by purpose

Total domestic tourist trips in Saudi Arabia in 2022, by purpose (in millions)

Inbound tourism

• Premium Statistic Number of inbound tourists Saudi Arabia 2018-2022
• Premium Statistic Total number of inbound tourists Saudi Arabia 2022, by region of origin
• Premium Statistic Number of inbound tourists Saudi Arabia 2022, by country of origin
• Premium Statistic Leading cities in inbound tourist arrivals Saudi Arabia 2022, by city
• Premium Statistic Share of inbound tourists Saudi Arabia 2022, by accommodation
• Premium Statistic Average length of stay of inbound tourists Saudi Arabia 2015-2022

Number of inbound tourists Saudi Arabia 2018-2022

Number of inbound tourists to Saudi Arabia from 2018 to 2022 (in millions)

Total number of inbound tourists Saudi Arabia 2022, by region of origin

Total number of inbound tourists in Saudi Arabia in 2022, by region of origin (in millions)

Number of inbound tourists Saudi Arabia 2022, by country of origin

Number of inbound tourists to Saudi Arabia in 2022, by country of origin (in millions)

Leading cities in inbound tourist arrivals Saudi Arabia 2022, by city

Number of inbound tourist arrivals to leading destinations in Saudi Arabia in 2022, by city (in millions)

Share of inbound tourists Saudi Arabia 2022, by accommodation

Share of inbound tourists in Saudi Arabia in 2022, by accommodation type

Average length of stay of inbound tourists Saudi Arabia 2015-2022

Average length of stay of inbound tourists in Saudi Arabia from 2015 to 2022 (in nights)

Outbound tourism

• Premium Statistic Number of outbound departures from Saudi Arabia 2015-2022
• Premium Statistic Total outbound tourist trips Saudi Arabia 2022, by region and nationality
• Premium Statistic Share of outbound Saudi tourist trips Saudi Arabia 2022, by destination country
• Premium Statistic Share of outbound non-Saudi tourist trips Saudi Arabia 2022, by destination
• Premium Statistic Share of Saudi outbound tourists Saudi Arabia 2022, by accommodation type
• Premium Statistic Share of non-Saudi outbound tourists Saudi Arabia 2022, by accommodation type

Number of outbound departures from Saudi Arabia 2015-2022

Number of outbound tourists from Saudi Arabia from 2015 to 2022 (in millions)

Total outbound tourist trips Saudi Arabia 2022, by region and nationality

Total outbound tourist trips in Saudi Arabia in 2022, by region and nationality (in millions)

Share of outbound Saudi tourist trips Saudi Arabia 2022, by destination country

Share of outbound trips of Saudi nationals in Saudi Arabia in 2022, by destination country

Share of outbound non-Saudi tourist trips Saudi Arabia 2022, by destination

Share of outbound trips of non-Saudi residents in Saudi Arabia in 2022, by destination country

Share of Saudi outbound tourists Saudi Arabia 2022, by accommodation type

Share of Saudi outbound tourists from Saudi Arabia in 2022, by accommodation type

Share of non-Saudi outbound tourists Saudi Arabia 2022, by accommodation type

Share of non-Saudi outbound tourists from Saudi Arabia in 2022, by accommodation type

Domestic tourism

• Premium Statistic Number of domestic tourists Saudi Arabia 2018-2022
• Premium Statistic Leading cities in domestic tourist trips Saudi Arabia 2022, by city
• Premium Statistic Number of domestic Hajj pilgrims in Saudi Arabia 1999-2023
• Premium Statistic Share of domestic tourists Saudi Arabia 2022, by accommodation

Number of domestic tourists Saudi Arabia 2018-2022

Number of domestic tourists in Saudi Arabia from 2018 to 2022 (in millions)

Leading cities in domestic tourist trips Saudi Arabia 2022, by city

Number of domestic tourist trips to leading destinations in Saudi Arabia in 2022, by city (in millions)

Number of domestic Hajj pilgrims in Saudi Arabia 1999-2023

Annual number of domestic Hajj pilgrims within Saudi Arabia from 1999 to 2023

Share of domestic tourists Saudi Arabia 2022, by accommodation

Share of domestic tourists in Saudi Arabia in 2022, by accommodation type

Further reports

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The travel and tourism sector in the arab world amidst the biggest crisis the sector faces in its history.

Joint statement by the Arab Tourism Organization, the Arab Civil Aviation Organization and the Arab Air Carriers’ Organization

The travel and tourism sector is facing a crisis that has not been witnessed in its history, due to the spread of the COVID-19 epidemic. This crisis is threatening the loss of more than 75 million jobs globally supported by this vital sector, which is considered one of the basic sectors of the economy contributing by 10.4% to the global GDP.

In the Arab world, so far, millions of reservations done with airlines and at hotels have been canceled in various countries, the flood of tourists to the world's leading Arab touristic destinations has stopped, thousands of flights of Arab airlines have been canceled, and 800 aircraft belonging to those airlines have been parked at airports. In brief, this vital sector, which represents an average of 14.2 percent of the GDP of Arab countries, lost from the beginning of the year until late March 2020, about USD 25 billion in tourism receipts, USD 8 billion dollars in revenue loss for Arab airlines, and USD 12.96 billion in tourism investments. Most importantly, this crisis is threatening the loss of about one million permanent jobs and hundreds of thousands of seasonal jobs in the Arab world that depend for their livelihood on the travel and tourism sector.

Therefore, recognizing the size of this crisis and the role of the travel and tourism sector in sustainable development and in order to help jumpstart the economic  contribution of the sector when this crisis is over, God willing, the Arab Tourism Organization, the Arab Civil Aviation Organization and the Arab Air Carriers’ Organization decided to establish a regional strategic team that includes representatives of the three organizations and other stakeholders in the travel and tourism sector in the Arab world to develop a series of measures and action plans that would support the return of this sector to play its natural role in sustainable development and to encourage Arab governments to adopt those measures as soon as this crisis ends.

The three organizations believe that it is necessary for Arab governments to adopt some steps that would help in jumpstarting the economic contribution of the travel and tourism sector at the end of this crisis. Those steps are in line with the resolutions of Arab Summits issued since 2001 to date, and that emphasized the support to the tourism sector. The most important steps are as follows: •    To provide tax exemptions to the relevant sectors for a period of at least two years. •    To approve rescue plans and financial stimulus for the relevant establishments to ensure the continuity of their workforce in order to provide a social safety net, in addition to providing for them a quick return to work as soon as this cloud passes. •    To request lenders and service providers to provide a grace period for the institutions concerned before resuming payments of their dues. •    Airport operators and air navigation services providers to exempt airlines from paying aircraft parking fees and also canceling or reducing other airport and airspace user charges for a sufficient period of time to enhance the touristic appeal to Arab destinations. •    Governments to compensate the new additional costs that relevant establishments are bearing and that relate to the containment of the virus and sterilization procedures. •    Governments to cancel or simplify visas as much as possible, as well as reducing or eliminating visa costs. •    Governments to reduce “unnecessary barriers” at ports and airports. •    Governments to reducing taxes on travelers such as air travel and hotel accommodation taxes. •    Governments to increase budgets for promoting touristic destinations.

The three organizations also called on governments to give the travel and tourism sector all the privileges that the industrial sector gets, as it is an engine for all other industries directly or indirectly, in addition to providing grants and financial facilities for small and medium-sized companies.

The three organizations confirmed that a working group has been formed to manage the tourism crisis in the Arab world, including a number of their Excellencies, tourism ministers, in addition to the three organizations, in order to follow up the developments and find solutions to all problems that may arise as a result of this crisis. The three organizations also confirmed that joint workshops and training courses will be held as soon as the crisis ends, at the will of God Almighty, for those concerned in travel and tourism to overcome the effects of losses and to promote this major sector.

The Arab Tourism Organization, the Arab Civil Aviation Organization and the Arab Air Carriers’ Organization hope that the spread of the epidemic will be contained with minimal damage to people’s health first and a rapid return to stimulate the economic cycle for the benefit of all people.

It is worth noting that resolutions of Arab Summits issued from 2001 to 2019 that aimed at supporting the tourism sector have included considering tourism a strategic sector that is granted all credit and tax facilities enjoyed by export sectors. The resolutions also supported inter-Arab tourism and attracting more foreign tourists to the Arab region,  in addition to liberalizing air transport between Arab countries, and working on establishing the principle of equal treatment of Arab tourists as compared to nationals and not to distinguish between them in the prices of hotels, tickets, and fees for touristic sites and attractions. These resolutions have also instructed the Council of Arab Transport Ministers to accelerate the development of an Arab agreement for the transport of passengers by road between Arab countries, to discuss possible means to reduce the requirements of entry visas for Arab nationals, to facilitate granting visas and ease restrictions on their duration by expediting the introduction of the necessary automated linkage systems.

** This statement was issued by Dr. Bandar bin Fahd Al Fuhaid - President of the Arab Tourism Organization, Eng. Abdulnabi Manar - Director General of the Arab Civil Aviation Organization, and Mr. Abdul Wahab Teffaha - Secretary General of the Arab Air Carriers’ Organization.

قطاع السياحة والسفر في العالم العربي في ظلّ أكبر أزمة يواجهها القطاع في تاريخه

 بيان مشترك للمنظمة العربية للسياحة والمنظمة العربية للطيران المدني والإتحاد العربي للنقل الجوي

يواجه قطاع السياحة والسفر أزمة لم يشهدها في تاريخه نتيجة لإنتشار وباء فيروس الكورونا المستجد، حيث يتوقع أن تؤدي هذه الأزمة إلى خسارة عالمية  بأكثر من 75 مليون وظيفة يدعمها هذا القطاع الحيوي الذي يعتبر من القطاعات الإقتصادية الأساسية مساهماً بنسبة 10.4 بالمئة في الناتج المحلي الاجمالي العالمي.

وفي العالم العربي ألغيت ملايين الحجوزات حتى الآن لدى شركات الطيران والفنادق في مختلف الدول، وتوقف التوافد إلى المقاصد السياحية العربية الرائدة عالمياً، وألغيت آلاف الرحلات لشركات الطيران العربية، وتوقفت 800 طائرة تابعة لها في المطارات حتى الآن. وبإختصار فإن هذا القطاع الحيوي الذي يمثل كمتوسط 14.2 بالمئة من الناتج المحلّي الإجمالي للبلدان العربية قد خسر منذ بداية العام وحتى أواخر مارس 2020، حوالي 25 مليار دولار أميركي في ايرادات السياحة و8 مليار دولار اميركي كخسائر في ايرادات شركات الطيران العربية، و12.96 مليار دولار أميركي في الاستثمارات السياحية، والأهم من ذلك هو تهديد خسارة حوالي مليون وظيفة دائمة و مئات الآلاف من الوظائف الموسمية في العالم العربي تعتمد في معيشتها على قطاع السياحة والسفر.

 لذا، إدراكاً من المنظمة العربية للسياحة والمنظمة العربية للطيران المدني والإتحاد العربي للنقل الجوي لحجم هذه الأزمة ولدور قطاع السياحة والسفر في التنمية المستدامة وفي تحفيز النموّ السريع للقطاعات الإقتصادية الأخرى بعد انتهاء الأزمة الحالية بإذن الله، قررت المنظمات الثلاث تشكيل فريق استراتيجي إقليمي يضم ممثلين عنها والمعنيين بقطاع السياحة والسفر في العالم العربي للنظر في سلسلة من التدابير والخطط العملية التي من شأنها دعم عودة هذا القطاع للقيام بدوره الطبيعي في التنمية المستدامة وتشجيع الحكومات العربية على تبنيها فور الخروج من الأزمة.

وترى هذه المنظمات انه من الضروري قيام الحكومات العربية بتبني بعض الخطوات التي من شأنها المساعدة في إنطلاقة سريعة للمساهمة الاقتصادية لقطاع السياحة والسفر عند انتهاء هذه الأزمة والتى تتماشى مع قرارات القمم العربية والتى صدرت منذ عام 2001 حتى تاريخه حيث أكدت على دعم القطاع السياحي، ومن أهم الخطوات المقترحة هي: •    تقديم إعفاءات ضريبية للقطاعات المعنية لمدّة سنتين على الأقل. •    اقرار خطط انقاذ وتحفيز مالي لمؤسسات ذات العلاقة لضمان استمرارية كوادرها الوظيفية في العمل وذلك لتوفير شبكة امان اجتماعية، اضافة الى توفير عودة سريعة للعمل فور زوال هذه الغمة. •    أن تطلب الحكومات من المقرضين وموردي الخدمات توفير فترة سماح للمؤسسات المعنية قبل استئناف تسديد مدفوعاتهم. •    أن يقوم مشغلو المطارات ومقدمو خدمات الملاحة الجوية بإعفاء شركات الطيران من دفع رسوم إيواء الطائرات وأيضاً إلغاء أو تخفيض الرسوم الأخرى لاستخدام المطارات والمجال الجوي لفترة طويلة نسبياً لتعزيز الجاذبية السياحية للمقاصد. •    تعويض التكاليف الإضافية الجديدة على الشركات المعنية التي تتعلق باجراءات الاحتواء والتعقيم. •    إلغاء تأشيرات السفر أو تبسيطها قدر المستطاع فضلا عن تقليص التكلفة او الغائها. •    تقليص "الحواجز غير الضرورية" في الموانئ والمطارات. •    تخفيض الضرائب على المسافرين مثل ضريبة السفر جواً وضرائب الإقامة في الفنادق. •    رفع ميزانيات الترويج للأماكن والمقاصد السياحية.

كما دعت هذه المنظمات الحكومات الى إعطاء قطاع السياحة والسفر كافة الامتيازات التي يحصل عليها القطاع الصناعي كونه محرك لكافة الصناعات الأخرى بشكل مباشر أو غير مباشر، بالإضافة إلى تقديم منح وتسهيلات مالية للشركات الصغيرة والمتوسطة.

وأكدت المنظمات الثلاث بأنه تم تكوين فريق عمل لإدارة الازمة السياحية في العالم العربي ضم عدد من أصحاب المعالى الوزراء المعنيين بالسياحة بالإضافة للمنظمات الثلاث وذلك لمتابعة الحدث وايجاد حلول لكافة المشاكل التي قد تطرأ جراء هذه الازمة، وبأنه سيقام ورش عمل ودورات تدريبية مشتركة فور انتهاء الازمة بمشيئة الله تعالى للمعنين فى الثلاث قطاعات لتجاوز أثار الخسائر وللنهوض بهذه الصناعة الكبرى .

 وتأمل المنظمة العربية للسياحة والمنظمة العربية للطيران المدني والإتحاد العربي للنقل الجوّي أن يتم احتواء انتشار الوباء بأقل ضرر ممكن على صحة الناس أولاً والعودة السريعة لتحفيز الدورة الاقتصادية لما فيه خير للناس جميعاً.

 والجدير بالذكر بأن قرارات القمم العربية التي صدرت منذ عام 2001 وحتى 2019 بهدف دعم صناعة السياحة فقد اشتملت على اعتبار السياحة صناعة استراتيجية تمنح كافة التسهيلات الائتمانية والضريبية التي تتمتع بها صناعات التصدير، دعم السياحة العربية البينية وجذب المزيد من السياحة الأجنبية إلى المنطقة العربية، تحرير النقل الجوي بين الدول العربية ، والعمل على إرساء مبدأ مساواة السائح العربي بالمواطن وعدم التمييز بينهما في أسعار الفنادق والطيران ورسوم المواقع والمزارات السياحية، وتكليف مجلس وزراء النقل العرب بالإسراع في وضع اتفاقية عربية لنقل الركاب براً بين الأقطار العربية، وبحث الوسائل الممكنة للحد من اشتراط تأشيرات الدخول للمواطنين العرب، وتقديم تسهيلات ملموسة في منح التأشيرات وفي مدتها، من خلال الإسراع في إدخال أنظمة الربط الآلي اللازمة، وتكليف وزراء السياحة والإعلام العرب بالتنسيق فيما بينهم للقيام بحملات مشتركة، لإبراز الصورة الحضارية والإنسانية للعرب والمسلمين عالمياً، وتنشيط وتطوير حركة السياحة إلى المنطقة العربية وزيادة فعاليتها ، دعم التنمية السياحية العربية والتكامل السياحي العربي، التأكيد على دور مؤسسات التمويل العربية والإقليمية في تمويل إعداد دراسات الجدوى الخاصة بالمشروعات السياحية العربية المشتركة تشجيعاً للقطاع الخاص على الاستثمار فيها، تقرير واقع السياحة في الدول العربية ومتطلبات تنشيطها ومقترحات تطويرها ، الموافقة على الإطار العام للاستراتيجية السياحية العربية ، توفير المناخ الملائم للاستثمار في القطاع السياحي لتشجيع القطاع الخاص العربي على زيادة استثماراته في القطاع وتنمية وتأهيل الكوادر العربية المشتغلة في صناعة السياحة ، والموافقة على مبادرة التكامل بين السياحة والتراث الحضاري في الدول العربية.

** صدر هذا البيان عن الدكتور بندر بن فهد آل فهيد - رئيس المنظمة العربية للسياحة، والمهندس عبدالنبي منار - المدير العام للمنظمة العربية للطيران المدني، والأستاذ عبدالوهاب تفاحة - الأميـن العام للإتحاد العربي النقل الجوي.  

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Saudi tourism sector to be Mena's fastest-growing in next decade, WTTC says

Employment in travel industry set to double by 2032 and exceed pre-pandemic levels by next year.

An ancient Nabataean carved tomb at the archaeological site of Al Hijr (Hegra), one of Saudi Arabia's prime tourist attractions. AFP

Saudi Arabia's travel and tourism sector will grow an average 11 per cent annually over the next decade, making it the Middle East's fastest-growing market, the World Travel & Tourism Council ( WTTC ) has said.

Annual growth in the industry is set to bolster the overall economic recovery of the kingdom, the global tourism body said in a statement on Monday.

By 2032, the sector’s contribution to Saudi Arabia's gross domestic product could reach nearly 635 billion Saudi riyals ($169bn), representing 17.1 per cent of the kingdom's total economy, it said.

“Travel and tourism will become a driving force of the Saudi Arabian economy and will surpass the goals set out in its Vision 2030 blueprint," said Julia Simpson, WTTC president and chief executive.

Saudi Arabia had been developing its tourism industry before the Covid-19 outbreak, as part of its efforts to diversify the country's economy and steer away from dependence on oil. In May, the kingdom achieved the second biggest improvement in ranking among 117 countries featured in the World Economic Forum’s index on travel and tourism. From 2019 to 2021, Saudi Arabia moved up to 33rd position from 43rd, as its score rose by 2.3 per cent.

Employment in Saudi Arabia's travel and tourism sector could double over the next 10 years, creating more than 1.4 million jobs, to reach almost three million employed within the sector by 2032, the WTTC forecasts.

By 2023, Saudi Arabia’s travel and tourism sector contribution to the national economy could surpass pre-pandemic levels, when it is projected to rise 2 per cent above 2019 levels, to reach nearly 297bn riyals.

Employment in the sector could also exceed 2019 levels by 14.1 per cent by the end of next year, the tourism body said.

By the end of 2022, the sector’s contribution to the kingdom's GDP is expected to grow 15.2 per cent to nearly 223bn riyals, amounting to 7.2 per cent of the total economic output, while employment in the sector is set to grow by 16.1 per cent to reach more than 1.5 million jobs.

The kingdom is scheduled to host WTTC’s 22nd Global Summit in Riyadh in November this year.

“I am delighted the kingdom is hosting our 22nd Global Summit, where we will be able to continue our efforts of showcasing the importance of the travel and tourism sector and look ahead to the future of travel," Ms Simpson said.

Before the pandemic, Saudi Arabia’s travel and tourism sector's total contribution to GDP was 9.7 per cent (291.6bn riyals) in 2019, falling to only 6.6 per cent (190.6bn riyals) in 2020.

The sector also supported nearly 1.6 million jobs, before an almost complete halt to international travel, which resulted in a loss of 350,000 jobs (22.2 per cent), to reach slightly more than 1.2 million in 2020.

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Saudi Arabia’s Travel & Tourism to Have Fastest Growth in the Middle East Over the Next Decade

Saudi Arabia’s Travel & Tourism to have fastest growth in the Middle East over the next decade

Employment in the sector set to double by 2032

Sector expected to surpass pre-pandemic levels by next year

Saudi Arabia to host WTTC’s 22 nd Global Summit later this year

London, UK: The World Travel & Tourism Council ( WTTC ) has revealed the Travel & Tourism sector in Saudi Arabia is expected to grow at an average of 11% annually over the next decade, making it the fastest growing Travel & Tourism in the Middle East.

According to the forecast from WTTC’s latest Economic Impact Report (EIR), this annual growth, more than six times the 1.8% growth rate of the country’s overall economy, will bolster the economic recovery of the Kingdom.

By 2032, the Travel & Tourism sector’s contribution to GDP could reach nearly SAR 635 billion, representing 17.1% of the total economy.

The forecast also reveals Travel & Tourism employment could double over the next 10 years, creating more than 1.4 million jobs, to reach almost three million employed within the sector by 2032.

The projections for both employment and the sector’s contribution to the Kingdom's economy, surpass the ambitious goals set out by the government’s Vision 2030 strategic framework.

By 2023, following two years of heartache, Saudi Arabia’s Travel & Tourism sector's contribution to the national economy could surpass pre-pandemic levels, when it is projected to rise 2% above 2019 levels, to reach nearly SAR 297 billion.

Employment in the sector could also exceed 2019 levels by 14.1%, creating more than 223,000 additional jobs, representing nearly more than 1.8 million by the end of next year.

By the end of this year, the sector’s contribution to GDP is expected to grow 15.2% to nearly SAR 223 billion, amounting to 7.2% of the total economic GDP, while employment in the sector is set to grow by 16.1% to reach more than 1.5 million jobs.

According to the global tourism body, the Kingdom, due to host WTTC’s 22 nd Global Summit in Riyadh from 28 November to 1 December this year, is witnessing a faster than average recovery following the government’s total commitment to the Travel & Tourism sector, ensuring it remained at the forefront of the global agenda.

Julia Simpson, WTTC President & CEO, said: “Throughout these difficult times for our sector, the Saudi Arabia government has recognised the importance of Travel & Tourism and has led the world in its recovery. Through his leadership, Travel & Tourism will become a driving force of the Saudi Arabian economy and will surpass the goals set out in its Vision 2030 blueprint.

“I would like to commend Ahmed Al Khateeb, who has shown strong leadership during this crisis which has boosted the sector’s growth with unprecedented investments and new approaches to tourism.

“I am delighted the Kingdom is hosting our 22 nd Global Summit, where we will be able to continue our efforts of showcasing the importance of the Travel & Tourism sector and look ahead to the future of travel.”

Before the pandemic, Saudi Arabia’s Travel & Tourism total contribution to GDP was 9.7% (SAR 291.6 billion) in 2019, falling to just 6.6% (SAR 190.6 billion) in 2020, representing a staggering 34.6% loss.

The sector also supported nearly 1.6 million jobs, before an almost complete halt to international travel which resulted in a loss of 350,000 (22.2%), to reach just over 1.2 million in 2020.

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UAE leads Mena region and ranks among top 20 on WEF travel and tourism index

The UAE is leading the Middle East and North Africa region on the World Economic Forum's travel and tourism development index, as the Arab world’s second-largest economy continues to attract visitors from around the world.

The Emirates , whose tourism sector bounced back swiftly from the coronavirus pandemic, ranks 18th on the Travel and Tourism Development Index – a measure of a country’s ability to sustainably grow its travel and tourism industry – a WEF report found on Tuesday.

Saudi Arabia was ranked 41st on the index, followed by Israel at 48th, Qatar at 53rd, Bahrain at 58th, and Egypt at 61st.

The UAE improved its score by 4.4 per cent between 2019 and 2024, showing strengths in several key areas such as business environment, safety, information and communications technology, as well as human resources, the report said.

Among high-income economies, only Saudi Arabia and the UAE were ranked in the top 10 for showing the most improvement in their scores between 2019 and 2024.

Dubai, the Gulf region's tourism and finance hub, has been investing heavily in its tourism and aviation infrastructure to keep peace with growing demand.

The city hosted 5.18 million international overnight visitors in the first quarter of 2024, compared with 4.67 million tourist arrivals during the same period last year, according to official data.

Dubai is also building a new passenger terminal at Al Maktoum International, the emirate's second airport also known as Dubai World Central, as its main hub, Dubai International, inches closer to full capacity.

Meanwhile, Abu Dhabi's tourism body is planning to invest more than $10 billion in infrastructure as part of its new major tourism strategy, the chairman of the emirate's Department of Culture and Tourism told The National last month.

The oil-rich emirate aims to boost the number of hotel rooms to 52,000, from the current 34,000, to support the Abu Dhabi Tourism Strategy 2030, Mohamed Al Mubarak had said at the time.

“This year marks a turning point for the travel and tourism sector, which we know has the capacity to unlock growth and serve communities through economic and social transformation,” said Francisco Betti, head of the global industries team at the WEF.

I nternational tourist arrivals and the travel sector's contribution to the global economy are expected to return to pre-pandemic levels this year, according to the WEF.

International tourist arrivals climbed to 88 per cent of the 2019 level, last year, with travel and tourism’s share of the global gross domestic product reaching pre-pandemic levels at $9.9 trillion, the report said.

The Middle East experienced the highest recovery rates in tourist arrivals, surpassing 2019 levels by 20 per cent.

Meanwhile, Europe, Africa and the Americas also recorded strong recovery rates, with tourist arrivals reaching around 90 per cent of their pre-pandemic levels in 2023, the report said.

In 2024, global tourism is expected to expand further, driven by pent-up demand and growth in major Asian markets after travel restrictions were lifted later than in other regions.

However, the uneven recovery, labour shortages, supply and demand imbalances, rising travel prices, and service disruptions have put pressure on some destinations and businesses, the WEF said.

While travel demand has proven resilient, the macroeconomic and geopolitical landscape – marked by economic uncertainty, high inflation and energy prices, increased interest rates, and conflicts from Ukraine to the Middle East – has exacerbated the sector’s challenging operating conditions, the report said.

“Combined with the impact of climate events such as global heatwaves and wildfires in countries like Greece and the return of overcrowding at destinations such as Venice, the sector’s influence on economic, social and environmental issues has become even more apparent,” it added.

Mixed recovery

While the travel and tourism sector is recovering from the impact of the pandemic, there is a wide gap between the growth rates of developing and high-income countries.

The top positions in this year's WEF travel and tourism development index were occupied by mature, high-income travel and tourism economies in Europe, and to a lesser extent, in Asia-Pacific.

Among the top 30 scorers, 19 were from Europe, seven from Asia-Pacific, three from the Americas, and one from the Mena region – the UAE.

The US, Spain and Japan took the first three positions in the index, followed by France, Australia, Germany, the UK, China, Italy and Switzerland.

High-income economies generally have more favourable conditions for travel and tourism development, supported by conducive business environments, dynamic labour markets, and open travel policies, among others, the report said.

However, developing countries have recorded significant improvements in recent years.

China, the world’s second-largest economy, has cemented its place in the top 10 among upper-middle-income economies, while emerging destinations such as Indonesia, Brazil and Turkey have also joined the Asian country in the top quartile of the rankings, the WEF said.

Overall, low- to upper-middle-income economies represented more than 70 per cent of countries that have improved their scores since 2019, with the Mena and sub-Saharan Africa regions showing notable progress, the report added.

It, however, warned that significant investments were still needed to close gaps in enabling conditions and market share between developing and high-income countries.

One pathway to achieve this could be leveraging natural and cultural assets, which offer developing economies an opportunity for tourism-led economic development, the WEF said.

“It’s essential to bridge the divide between differing economies’ ability to build a strong environment for their travel and tourism sector to thrive,” said Lis Tussyadiah, head of the school of hospitality and tourism management at the University of Surrey.

“The sector has big potential to foster prosperity and mitigate global risks, but that potential can only be fully realised through a strategic and inclusive approach.”

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This article also features in The Report: Saudi Arabia 2022 . Read more about this report and view purchase options in our online store.

Saudi Arabia’s ambitious tourism projects attract foreign investment

Saudi Arabia | Tourism

Saudi Arabia is rolling out a broad tourism offering across the country as a central part of its Vision 2030 national transformation strategy. Following the launch of the tourist visa programme in September 2019 and the subsequent downturn associated with the Covid-19 pandemic, 2021 and 2022 have featured an ambitious calendar of events ranging from the Formula 1 Grand Prix, to arts and cultural festivals. In October 2021 the Ministry of Tourism announced a $1trn investment package for the sector over the next 10 years. This reflects the Kingdom’s ambitions to become one of the top tourist destinations both regionally and globally.

Leisure tourism offerings, with a particular focus on medium- and high-income tourists, are set to expand as a series of mega-project destinations come on-line through to 2030. Saudi Arabia is developing an array of destinations, tailored to the geographic and environmental variety of the country. Many of the Kingdom’s new tourism destinations are along the west coast, bringing newfound importance to this part of Saudi Arabia, following the previous development focus on the east as the centre of the energy economy.

The Kingdom’s new giga- and mega-projects are driving the sector’s growth, in addition to a series of projects focused on heritage and upgrading existing destinations. To facilitate the rapid growth of tourism, significant infrastructure is currently under development, including new hotels, commercial facilities and transport networks. The recent expansion of the tourism sector represents one of the most visible signs of the country’s transformation, in line with its efforts to attract more tourists and investment.

In addition to unlocking significant international tourism potential, one of the sector’s central aims is to capture the domestic tourism market while enhancing the quality of life of Saudi Arabia’s population through a range of new attractions. The industry is being seen as key to both creating more job opportunities for Saudi citizens and harnessing new revenue streams.

Structure & Oversight

There have been a number of structural changes as the tourism sector has grown and developed in recent years. In 2020 three new tourism entities were established to oversee the sector and support its expansion: the Ministry of Tourism, the Saudi Tourism Authority and the Tourism Development Fund. The Ministry of Tourism, formerly the Saudi Commission for Tourism and National Heritage, is responsible for defining strategy and policy in addition to regulating the sector. The Saudi Tourism Authority is responsible for promoting Saudi Arabia as a global tourism destination and developing the country’s tourism brand. The authority is also charged with developing the sector by building commercial partnerships and coordinating with local tourism destinations to attract more tourists to the country. The Tourism Development Fund, meanwhile, is responsible for executing the ministry’s investment strategy, which includes designing investment plans and providing funding for the sector. The fund has a $4bn endowment to invest in the sector and provides support for businesses operating in and seeking to enter the Saudi tourism market.

Diversification 

The country aims to make tourism one of the biggest industries after energy, with the national leadership viewing it as vital to the realisation of Vision 2030. The Kingdom has an official target to raise the contribution of the sector from 3% of GDP in 2016 to 10% by 2030. In 2022 public officials announced that the sector is expected to exceed this target and account for up to 15% of GDP by 2030.

The Kingdom has a target of 100m overnight visitors per year by 2030, 45% of which are expected to be domestic and 55% international. According to a 2022 report by Entrepreneurship Middle East, by 2030, 50% of tourists are expected to visit for leisure, 32% for religious tourism, 10% for visiting friends and family (VFR), and 9% for business tourism. In comparison, there were a total of 45m visits in 2019, 40% of which were leisure tourists, at approximately 18m, 38% religious tourists, 13% VFR tourists and 9% business tourists. In this breakdown, visits include any domestic or international tourist arrival, meaning that a single tourist may account for multiple visits to different locations. To accommodate these arrivals, the Kingdom seeks to add 500,000 hotel rooms across the country by 2030.

The tourism sector will also be highly important for job creation. In March 2022 Qusai Al Fakhri, CEO of the Tourism Development Fund, said at an event in Riyadh that the tourism sector is expected to create 1m new tourism jobs by 2030. New jobs in adjacent sectors such as construction and transport are also expected to be created as the sector expands.

Saudi Arabia’s National Tourism Strategy identified 10 key destinations in the Kingdom that present opportunities for investors across the tourism value chain. These are Jouf, Hail, Al Ula, Medina, Riyadh, Eastern Province, Jeddah, Taif, Al Baha and Aseer. Meanwhile, the Tourism Development Fund has identified six high-growth segments with opportunities for investors. These are tourism destinations and attractions, tourism and travel services, accommodation, tourism experiences and activities, food and beverages at tourist destinations, and tourism retail.

In February 2022 the Kingdom launched its Digital Tourism Strategy, designed to deliver the next stage of the sector’s expansion and development, and accelerate progress towards the goals of the National Tourism Strategy. The strategy aims to implement agile digital and technology procedures throughout the sector in order to provide tourists and stakeholders with a more seamless experience. The strategy focuses on a number of areas, including promoting a Kingdom-wide culture of innovation and future-proof regulations, pioneering new digital business models to increase market demand for service providers, and upskilling and reskilling the country’s tourism workforce. The strategy consists of nine programmes and 31 initiatives that are set to be implemented over a period of three years.

In line with job creation, human capital is an important strategic focus for the sector. In June 2022 the Ministry of Tourism launched a new programme that will see 100,000 Saudis trained in key hospitality skills needed for the tourism sector throughout 2022.

Size & Performance

Saudi Arabia’s tourism sector is forecast to grow by an average of 11% annually over the next decade, according to a 2022 report from the World Travel & Tourism Council, making it the fastest growing in the Middle East. As the world emerges from the pandemic, the tourism sector is seeing a return to growth and resuming the path towards expansion established in 2019. According to the Saudi Tourism Authority, the tourism sector accounted for 5.3% of GDP, with 836,000 jobs created as of 2022.

Record domestic travel was registered in 2021. In May 2022 Fahd Hamidaddin, CEO of the Saudi Tourism Authority, reported the country witnessed 62m tourist visits in 2021. Of this figure, 32.5m were domestic visits and 29.5m were international arrivals. Hamidaddin also noted that visits were up 130% in the first quarter of 2022 compared with the fourth quarter of 2019.

This performance has been supported by sustained efforts to finance expansion. In November 2021 the Tourism Development Fund told local press that between June 2020 and September 2021 it had deployed $533m, with an additional $1.1bn of funding coming from the private sector.

In the hotel industry, the number of branded keys reached approximately 61,400 in the first quarter of 2022, representing an increase of more than 4% compared to the same period in 2021, according to real estate consultancy Colliers. The firm expects the market to increase at a compound annual growth rate of 11% from 2022 to 2024, with an additional 23,300 keys expected to be added to the market. Moreover, the Kingdom moved up 10 places in the 2021 World Economic Forum Travel and Tourism Development Index, ranking 33rd compared to 43rd in 2019. The index covers some 117 countries.

A number of major global hotel chains have announced new expansion plans in the Kingdom. In June 2021 hotel group Accor announced it had 33 properties in the pipeline, with 10,060 keys to be added to its existing 39 properties in the Kingdom. Hilton also announced in 2021 that it had 46 hotels under development, which would add to its existing 15 hotels in the country. It plans to expand its operations to more than 75 properties over the next few years. IHG, meanwhile, announced in December 2021 that it had 23 hotels in the development pipeline, to add to the 37 hotels it already operates. The company’s developments are expected to open between 2025 and 2027.

Global property consultancy Knight Frank reported in 2022 that this was the biggest hotel supply pipeline ever seen in the region. The firm forecasts a 63.2% surge in four- and five-star hotel rooms by 2030.

Giga-projects

Growing demand for leisure tourism dovetails with the development of giga-projects. A number of these mega-developments are being purpose built for the domestic and international tourism markets. According to Knight Frank, giga-projects account for nearly 73% of the hotel supply pipeline.

In March 2022 NEOM – the $500bn smart and sustainable city project spearheaded by the Public Investment Fund on the north-west coast – announced a new global destination for mountain tourism called Trojena. Situated in the centre of NEOM, the year-round destination will consist of a ski village, a man-made freshwater lake, ultra-luxury family and wellness resorts, a nature reserve, retail stores and restaurants, and water sports and mountain biking activities. The project is expected to be completed by 2026 and attract 700,000 visitors and 7000 permanent residents by 2030. It is estimated the project will create more than 10,000 jobs and add $800m to GDP by 2030. Trojena’s climate is designed to be one of the project’s most attractive features. The average temperature throughout the year is 10 °C lower than other cities across the region and temperatures drop below zero in winter. The area is situated in a mountain range with peaks that reach 2600 metres.

Elsewhere in the Kingdom, phase one of The Red Sea Project is set for completion in 2024, and will include 16 hotels with 3000 rooms across four islands and two inland sites. The first three hotels are set to open in early 2023. Once the site is fully operational in 2030, the project is expected to include 50 hotels with 8000 hotel rooms and more than 1000 residential properties across 22 islands and six inland sites. It is forecast to contribute $5.9bn to GDP and cap visitors to 1m per year by 2030, in line with sustainability efforts. The 28,000-sq-km site on the west coast includes more than 90 islands, kilometres of desert dunes, dormant volcanoes and mountain landscapes.

Amaala, another giga-project under Vision 2030, is being constructed further north along the Red Sea coast. The family wellness destination will be composed of three parts: Triple Bay, The Coastal Development and The Island. Phase one of Triple Bay is under way and is set to be complete in 2024. It will consist of eight resorts offering upwards of 1300 hotel keys. As of September 2022 more than 300 contracts had been awarded, worth more than SR6.6bn ($1.8bn).

Once complete, Amaala will be home to more than 3000 hotel rooms across 25 hotels, and approximately 900 residential villas, apartments, and estate homes, alongside retail and dining establishments, wellness centres and recreational facilities.

Meanwhile, construction on Diriyah gate, the Kingdom’s $50bn heritage and tourism project, officially began in 2021. Located 15 minutes north-west of Riyadh’s city centre, the 7-sq-km development will be a mixed-use cultural, heritage and lifestyle destination with a series of luxury restaurants, hotels, residences, museums and cultural attractions. Diriyah’s buildings, inspired by traditional Arab architecture, will be in a pedestrianised zone. At its centre is the At-Turaif mudbrick city, the historic home of the Al Saud family and a UNESCO World Heritage site that has been preserved and restored over recent years. The project is set to have a phased opening starting in 2022 and continuing through to 2030. Diriyah is expected to put Riyadh on the global tourism map, with a target of 30m local and international visitors by 2030.

The Diriyah project will include 180,000 sq metres of retail space and 110,000 sq metres of office space, as well as more than 3000 luxury apartments, townhouses and villas. In December 2021 the first 14 of the project’s planned 38 hotel brands were announced. The development is expected to have a permanent population of 100,000 upon completion.

New Destinations

In April 2021 a new tourism master plan was announced for Al Ula, one of the country’s flagship tourist destinations located in north-west. Al Ula is home to ancient ruins, 2000-year-old rock-cut tombs, date farms, and a landscapes similar to the Petra archaeological site in Jordan and its neighbouring Wadi Rum desert. In 2008 UNESCO designated Hegra, a Nabataean archaeological site, also known as Mada’in Saleh, as Saudi Arabia’s first World Heritage site. The region is located along the historic incense route, a 2000-year-old trading route that transported frankincense and myrrh from Yemen and Oman to areas along the Mediterranean Sea.

Al Ula’s new master plan, Journey Through Time, aims to turn the area into a global destination for travellers focused on heritage, nature, art and culture. It envisages Al Ula becoming a living museum by showcasing 200,000 years of natural and human history. At the centre of the development will be a historical tram line inspired by the Hijaz Railway, that will connect five distinct districts across the area.

Al Ula officially opened to international travellers in 2020. In March 2021 Al Ula’s airport opened to international flights following an expansion project that quadrupled its capacity to 400,000 travellers a year. Much larger expansions of the airport are due to be implemented in the coming years to facilitate an expected influx of visitors. In February 2022 Amr Al Madani, the CEO of the Royal Commission for Al Ula, told local press that the destination aims to draw 250,000 visitors by 2023. Al Ula has an ultimate goal of attracting 2m visitors by 2035.

In order to accomplish its aims, the government launched a $13.3bn strategy for the development of its south-western Aseer region under the title of the Arabian Highland. The strategy aims to turn the region into year-round international tourism destination and attract more than 10m visitors annually by 2030. Earlier in 2021 Saudi Arabia launched the Soudah Development Company to develop a luxury mountain destination in the south-western Aseer region around Saudi Arabia’s highest mountain, Al Soudah, at 3015 metres. The mountain currently attracts around 1m visitors a year but the new development aims to increase this to 2m annual visitors and make the Soudah area an international tourist destination. Approximately $3bn is being invested in the project, which will see the development of 2700 hotel rooms, 1300 residential units, and 30 commercial and entertainment attractions. It will cover an area of 627 sq km and focus on sustainable tourism and environmental preservation. The destination is set to be launched at the end of 2023 and is expected to contribute $7.7bn to GDP by 2030.

Tourism is helping to reposition and reshape Saudi Arabia. The country’s diverse offering – from the ancient history and cultural heritage of Al Ula, to the coast of the Red Sea – offers a unique experience for tourists. The array of projects under development demonstrate its aspirations to become a more diverse destination for both foreign investment and visitors.

Tourism will continue to be important over the coming decade, particularly because a thriving tourism sector is central to the Kingdom’s plans to create a more diversified and sustainable economy. Continued government support for the sector demonstrates the importance of tourism in efforts to help the Kingdom reduce its reliance on hydrocarbons and diversify sources of revenue. If the country’s ambitions are realised, the sector will be well positioned to be at the centre of diversification efforts in the coming years.

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