Saudi Arabia records US$28B in domestic tourism spending through Q3 2025 – Tourism Ministry

SAUDI ARABIA – Saudi Arabia has achieved SR105 billion (US$28 billion) in domestic tourism spending by Q3 2025, up 18% year-on-year, as announced by Deputy Minister of Tourism Princess Haifa bint Mohammed at the Budget Forum 2026.

International Visitor Surge

Princess Haifa highlighted tourism’s role in economic diversification, with European arrivals climbing 14% and East Asia-Pacific visitors rising 15% this year.

Private Sector Boom

Private hospitality expanded dramatically by 1,250%, supported by 31,000+ licenses for rural lodges and homes, signaling robust investor enthusiasm and demand.

Investment Facilitation

Key enablers include a unified data platform for market insights and streamlined digital services accelerating investor processes.

Princess Haifa emphasized ongoing ambition: “These achievements do not represent an endpoint.”

Saudi Arabia’s surge in domestic tourism spending to SR105 billion (US$23 billion) by Q3 2025 is the result of impactful government investments and strategic initiatives aimed at boosting the sector.

The kingdom’s Vision 2030 program has prioritized tourism as a cornerstone for economic diversification, leading to billions of riyals allocated to developing world-class destinations, infrastructure, and cultural heritage sites.

Investment in mega-projects such as the Red Sea Project and NEOM has transformed vast areas into luxury resorts and entertainment hubs, attracting both domestic and international visitors.

Additionally, the development of new tourist attractions like Qiddiya and AlUla, which combine nature, history, and culture, has fueled interest among Saudis to explore their own country, boosting domestic travel.

The government has also enhanced accessibility by upgrading airports, roads, and public transportation, making travel to remote destinations more convenient.

The issuance of over 31,000 licenses for rural lodges and private hospitality homes underscores efforts to create diverse accommodation options tailored to local and regional tourists.

Furthermore, digitalization initiatives such as the unified data platform and expedited licensing processes have facilitated private investment and operational efficiency in tourism, empowering the private sector which now accounts for significant growth in hospitality offerings.

Together, these investments have made domestic tourism more appealing and accessible, leading to higher spending by Saudi residents while supporting job creation and regional economic development.

The ripple effect secures the tourism sector’s role as a sustainable engine for growth within Saudi Arabia’s evolving economy.

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