Madinah emerges as tourism powerhouse, ranking fourth-largest employer in the region – Madinah Chamber of Commerce

SAUDI ARABIA – Madinah has emerged as a major economic driver, with tourism ranking as the fourth-largest employer in the region, according to the Madinah Chamber of Commerce.

The sector provided jobs for 11% of the region’s total workforce in the first quarter of 2025, underscoring its growing role in human resource development and job creation.

The city’s hospitality sector delivered exceptional performance, recording the highest hotel occupancy rate in the Kingdom during the final quarter of 2024.

In the first half of 2025, Madinah topped all Saudi cities with a hotel occupancy rate of 74.7%, significantly surpassing the national average of 63%.

Serviced apartments also saw strong demand, achieving an occupancy rate of 48.7% in Q4 2024, reflecting sustained visitor interest in flexible accommodation options.

The city currently hosts 538 licensed hospitality facilities, including 69 new hotels and over 64,500 rooms, with more than 6,600 added in the past year alone.

Madinah ranks second in the Kingdom, after Makkah, in average length of stay, with visitors spending approximately four nights.

This extended stay pattern supports local businesses and enhances tourism’s economic impact.

In Q1 2025, the city welcomed 6.45 million religious visitors, including nearly 4.4 million international pilgrims, marking a 10.7% increase year-on-year.

Visitor numbers surged from 8.2 million in 2022 to over 18 million in 2024, reflecting a compound annual growth rate of 48.7%.

The Rua Al Madinah mega-project, spanning 1.5 million sqm, will add 47,000 new hotel rooms by 2030 and create 93,000 jobs across hospitality, transport, and retail.

Pilgrim arrivals are projected to reach 30 million by 2030, up from 17.3 million in 2025.

Global brands are accelerating investments: Hilton is developing eight new properties, while Radisson, Accor, and Four Seasons are expanding their footprints.

Wyndham plans to open 100 Super 8 hotels by 2030, targeting the mid-market segment in the Holy Cities.

Infrastructure upgrades include the Haramain High-Speed Railway, which transported nearly 70% of international Umrah pilgrims in 2025, connecting Jeddah, Makkah, and Madinah in under 45 minutes.

These achievements align with Saudi Vision 2030’s goal of welcoming 150 million visitors annually by 2030 and generating SAR750 billion (US$200 billion) in tourism revenue.

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