The US$73B tourism boom: Saudi Arabia’s sector growth, strategic investments

SAUDI ARABIA – Saudi Arabia’s tourism sector has achieved remarkable growth, with expenditure reaching SAR275 billion (US$73 billion), as highlighted by Vice Minister of Tourism Princess Haifa Bint Mohammed Al Saud.

Speaking at the 2026 Budget Forum, she underscored the sector’s success in attracting over 116 million domestic and international tourists, with a target to reach 150 million visitors soon.

Princess Haifa emphasized tourism’s pivotal role in diversifying the national economy.

This year saw European tourist arrivals grow by 14%, while visitors from East Asia and the Pacific increased by 15%.

Domestic tourism remains a crucial pillar, with spending surpassing SAR105 billion (around US$40 billion), marking an 18% growth by the third quarter of 2025.

The sector also witnessed a surge in private hospitality facilities, which expanded by an extraordinary 1,250%, fueled by the issuance of more than 31,000 licenses for rural inns and private homes.

Beyond these figures, Saudi Arabia has invested heavily in expanding tourism infrastructure to support sustainable growth.

Key investments include the development of new luxury resorts along the Red Sea coastline, such as Amaala and The Red Sea Project, aimed at attracting high-end visitors.

The government has also focused on enhancing heritage sites, including the restoration of historic Al-Ula, to bolster cultural tourism.

Additionally, the launch of new entertainment and leisure destinations in Riyadh and Jeddah complements the hospitality expansion, creating diverse attractions for both domestic and international tourists.

These strategic investments align with Vision 2030 objectives to promote economic diversification and create jobs, keeping Saudi Arabia’s tourism momentum steady and future-ready.

Private Hospitality Explosion

Private facilities grew 1,250% year-over-year, backed by 31,000+ licenses for rural inns and homes, fueling sustainable local tourism.

Princess Haifa called these steps toward bolder annual goals, spotlighting Ministry initiatives drawing domestic and foreign capital.

Recent Mega-Investments (2023-2024)

TOURISE 2025 unveiled SR2.9 billion (US$775 million) for Aseer region’s five integrated projects, transforming mountains into year-round luxury hubs. Inbound spending reached SR153.61 billion (US$41 billion) in 2024 (+14%), with private funding SR14.2 billion.​

Vision 2030’s US$800 billion pipeline—US$80 billion private—targets Red Sea resorts, NEOM’s Trojena ski destination, Diriyah heritage site (27 million visitors by 2030). Hospitality Investor White Paper (Jan 2025) lured global brands amid 56% international arrival growth (2023).

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