Saudi Arabia’s hospitality sector records 48% surge in international visitors in Q2 2025 – CBRE

SAUDI ARABIA – Saudi Arabia’s hospitality industry experienced remarkable growth in the second quarter of 2025, reinforcing the Kingdom’s status as a premier global travel destination, according to insights from CBRE, a global leader in commercial real estate. 

The sector benefited from a 48% increase in international visitors compared to the same period in 2024, reflecting strong demand driven by leisure, cultural, and religious tourism.

This surge in inbound travel coincides with Saudi Arabia’s wider economic diversification under Vision 2030, aiming to boost tourism’s contribution to GDP and attract 100 million annual visitors by the end of the decade.

The Kingdom’s hospitality sector continues to expand rapidly, supported by a growing pipeline of hotel projects, especially in Riyadh, which is emerging as a dynamic tourism and business hub.

New brand entries such as IHG’s EVEN Hotel are enhancing the market’s diversity and appeal, offering travelers innovative accommodations that cater to evolving preferences.

The increased hotel supply aligns with the anticipated accommodation demand generated by upcoming mega-events including major sporting tournaments and the highly anticipated Expo 2030.

These events are expected to catalyze sustained growth in tourism and hospitality infrastructure over the next several years.

In addition to international arrivals, domestic tourism and hospitality services also show significant growth.

Commercial registrations for holiday homes and chalets jumped 42% year-over-year in Q2, reaching 8,617 properties, while hospitality unit reservation registrations increased by 32%, signifying stronger private sector participation.

Hotel occupancy rates have risen as well, with figures hitting 63% in early 2025, supported by a tourism workforce exceeding 983,000.

This reflects a robust employment base aligned with sector expansion and high visitor volumes.

Industry experts emphasize that regulatory reforms, such as streamlined visa processes and enhanced foreign investment policies, are critical to sustaining this momentum.

Matthew Green, Head of Research MENA at CBRE, noted that welcoming foreign investments will drive substantial growth in inbound capital and foster social and economic stability through increased homeownership among foreign residents.

As Saudi Arabia continues to promote its unique mix of leisure, cultural heritage, and religious sites, the hospitality sector’s sustained growth signals strong confidence in the Kingdom’s ability to become a global travel and tourism powerhouse well ahead of 2030 targets.

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