Saudi Arabia’s tourism sector surpasses vision 2030 target with 11.5% GDP contribution, 14.4% rise in international visitors – JLL

SAUDI ARABIA – Saudi Arabia’s hospitality and tourism industry is experiencing unprecedented growth, outpacing its Vision 2030 targets and positioning the Kingdom as a rising global tourism hub, according to JLL’s latest report.

The tourism sector contributed 11.5% to the country’s GDP in 2023, surpassing the original 10% target set for 2030.

This milestone reflects the success of the Kingdom’s strategic initiatives to diversify its economy and develop world-class tourism infrastructure.

Since the introduction of tourist visas in 2019, international arrivals have surged by 14.4%, outstripping domestic visitor growth.

This influx has been supported by enhanced global connectivity through new airport developments and expanded flight routes, allowing Saudi cities such as Riyadh and Madinah to compete with established international tourism destinations.

The Kingdom welcomed 4.2 million leisure and holiday international visitors in the first seven months of 2024 alone, a 25% increase over the same period in 2023.

Hotel performance metrics underscore this growth, with Revenue Per Available Room (RevPAR) in Saudi Arabia increasing at an average annual rate of 9% since 2019.

Key cities have seen remarkable gains: Riyadh’s RevPAR grew by 19.1%, Jeddah’s by 12.7%, and the holy cities of Makkah and Madinah posted even stronger performances with RevPAR growth of 40.6% and 60.8%, respectively.

These figures highlight the rising profitability and attractiveness of Saudi Arabia’s hospitality market to investors.

The sector’s expansion is closely linked to the Kingdom’s mega-development projects such as Red Sea Global and Diriyah Gate, which focus on luxury tourism, cultural preservation, and infrastructure enhancement.

These initiatives, aligned with Saudi Vision 2030 and the National Tourism Strategy, have helped the country attract US$36 billion in tourism revenues in 2023, with expectations to grow tourism’s GDP contribution to 16% by 2034.

JLL’s report also identifies emerging destinations like Taif and Al Ahsa as new frontiers for hospitality investment, with these culturally rich cities attracting roughly 20 million visitors annually but currently under-served by quality accommodation.

This gap presents significant opportunities for investors seeking first-mover advantage.

Industry experts emphasize that Saudi Arabia’s tourism sector is not only driving economic diversification but also shifting the country’s service balance to a surplus, earning more from inbound visitors than it spends on outbound tourism.

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