Saudi Arabia’s hospitality sector achieved robust growth in 2024, attracting nearly 30 million international tourists. This marks a notable rise from 27.4 million visitors in 2023, as reported by CBRE Middle East, a global commercial real estate services and investment firm. The sector now contributes nearly 5% to the national GDP, positioning Saudi Arabia to meet its 10% target by 2030.
Furthermore, the kingdom aims to welcome 70 million inbound tourists annually, with an overall target of 170 million visitors by 2030. Saudi Minister of Tourism Ahmed Al Khateeb emphasized strategic investments in infrastructure and global partnerships to diversify tourism offerings.
Global Events Boost International Appeal
Meanwhile, Saudi Arabia continues leveraging high-profile sporting events like the 2034 FIFA World Cup to strengthen its global tourism profile. These initiatives align with broader efforts to enhance cultural and entertainment offerings, ensuring sustained visitor interest.
CBRE data highlights Riyadh’s strong performance, with rising average daily rates (ADRs) and stable revenue per available room (RevPAR). Dammam and Madinah also reported growth, driven by increased demand for business and religious travel.
However, December 2023 saw hotel occupancy rates dip 1.7% year-on-year due to a surge in new hotel supply. ADRs rose 2.1% during the same period, stabilizing RevPAR despite occupancy challenges.
Looking ahead, Jeddah and Makkah will face heightened competition as 12-24 months of accelerated room growth unfold. CBRE advises hoteliers to innovate offerings and enhance guest experiences to maintain profitability in evolving markets.
