Saudi Arabia is set to develop 362,000 new hotel rooms by 2030 as part of a $110 billion expansion in the hospitality sector, according to data released ahead of the Future Hospitality Summit Saudi Arabia. The large-scale growth aims to align with the country’s ‘Vision 2030’ framework.
“Fueled by ambitious Vision 2030 goals, Saudi Arabia’s tourism sector presents a compelling investment landscape, evidenced by its record-breaking SAR 444.3 billion GDP contribution in 2023, accounting for 11.5% of the national economy. This growth reflects the kingdom’s strategic initiative to position itself as a leading global tourism destination” said Oussama El Kadiri, partner and head of hospitality, tourism and leisure at Knight Frank.
The number of international arrivals reached 30 million in 2024, up from 27.4 million the previous year. Saudi Arabia aims to attract 70 million international visitors annually by 2030, supported by an expanding investment pipeline and infrastructure projects.
The kingdom is preparing to host major global events, including the 2029 Asian Winter Games, World Expo 2030 and FIFA World Cup 2034. El Kadiri noted that these events will “not only increase visitor numbers but also enhance Saudi Arabia’s global reputation as a premier destination for leisure, business, and mega-events.”
STR data shows that hotel room revenue in Saudi Arabia reached $5.6 billion between January and October 2024, a 3.5% increase over the previous year and 26.5% higher than in 2019. Riyadh and Medina recorded growth in both occupancy and average daily rate, with Riyadh seeing a 16% increase and Medina rising 5%.
Philip Wooller, senior director for the Middle East and Africa at STR, said, “Saudi Arabia is undoubtedly one of the most exciting destinations in the world, undergoing a remarkable transformation into a world-class tourism hub. The key to sustaining this momentum lies in balancing the influx of new hotel developments with a competitive market edge. While we anticipate tremendous success driven by strong demand generators, STR also forecasts a slight softening in rates as new hotel supply enters the market in the short term. This adjustment will be crucial in attracting fresh demand and ensuring healthy occupancy levels across the kingdom.”
Future Hospitality Summit Saudi Arabia will bring together hospitality industry leaders and investors at Mandarin Oriental Al Faisaliah in Riyadh. The event will include discussions on Saudi Arabia’s hospitality investment landscape, first-time investment opportunities and government incentives.
