Tourism

The Saudi Traveller Is Carrying Saudi Tourism

Saudi Arabia hosted about 123 million tourists in 2025 and set a spending record. But the numbers behind the headline tell a more useful story about where the sector's growth really comes from, and where the next opportunities sit.

Ameer Albahouth

14 Oct 2026 • 4 min read

Photo by Ameer Albahouth

In 2025, tourists spent about SAR304 billion in Saudi Arabia. That is a record, and it is 7% higher than the year before. Total tourist numbers reached roughly 123 million. The Ministry of Tourism published these figures in its annual statistical report in June 2026.

The headline suggests a sector driven by foreign arrivals. The detail says something else. Of those 123 million tourists, 93.3 million were domestic. That is about three in every four.

The largest customer of Saudi tourism is the Saudi traveller. Any business planning to grow in this sector should start from that fact.

Two markets, two economies

Domestic and inbound tourism behave like two separate markets. Inbound visitors numbered 29.3 million in 2025 and spent SAR176.6 billion. Domestic tourists numbered 93.3 million and spent SAR127.1 billion.

Divide spending by visitors and the gap becomes clear. An inbound visitor spent roughly SAR6,000 on average. A domestic tourist spent roughly SAR1,360. The international guest is worth about four times more per trip.

So the two markets play different roles. Domestic travel gives the sector volume and stability. Inbound travel gives it value. A healthy hospitality business in the Kingdom needs a plan for both.

The first quarter of 2026 proved the point

The first quarter of 2026 tested the balance. According to real estate consultancy Cavendish Maxwell, inbound arrivals fell 13% to 8.3 million. The firm linked the drop to regional geopolitical tension.

Yet total spending still reached SAR82.7 billion for the quarter. Domestic tourists rose 16% to nearly 29 million, or 78% of all visitors. Ramadan, Eid, and Hajj kept local travel strong. Inbound spending fell only 7%, much less than inbound arrivals.

The lesson is simple. When international demand softened, Saudi residents kept the sector moving. Domestic tourism is no longer a fallback. It is the foundation.

Religious travel is no longer the whole story

The type of foreign visitor is also changing. In 2025, about 52% of inbound overnight visitors came for non-religious reasons. In 2019, that share was 44%.

Religious tourism remains central. Makkah and Madinah still lead the country on hotel occupancy. But leisure, business, events, and visiting friends now make up the majority of inbound overnight stays.

That shift matters for every operator outside the holy cities. It means the demand for Riyadh, Jeddah, AlUla, the Red Sea coast, and the southern highlands is now real, not hypothetical.

The economic weight is growing

The sector now carries real economic weight. The World Travel and Tourism Council estimates Saudi travel and tourism GDP reached about $178 billion in 2025. That is growth of 7.4%, nearly double the global rate.

The Ministry reports nearly 1.03 million tourism jobs in 2025. Women now make up about 47% of Saudi employees in tourism activities. At the end of 2018, that figure was 5%.

The sector also earns foreign currency. The travel account recorded a surplus of SAR49.4 billion in 2025. Tourism has become one of the Kingdom's leading services exports.

The supply side is racing to catch up

Hotels are being built at speed. Knight Frank counts about 171,650 existing hotel rooms in the Kingdom. Another 94,500 are under construction or in advanced planning.

That pipeline would expand supply by more than half. Signings in early 2026 covered Makkah, Madinah, Jeddah, Diriyah, Dammam, Hail, and Taif. International groups such as Marriott, Accor, Hilton, and Four Seasons were all active.

Prices are holding up while supply grows. National occupancy reached 63% for the year to May 2026. The average daily room rate rose 12% to SAR825 over the same period.

150 million is within reach

The Kingdom passed its original target of 100 million visitors years early. The goal is now 150 million annual visitors by 2030.

From roughly 123 million in 2025, that requires growth of about 4% a year. Tourist numbers grew about 6% in 2025. On the current trend, the target is achievable.

The larger calendar adds momentum. Riyadh hosts Expo 2030. The Kingdom hosts the FIFA World Cup in 2034. Both will bring demand spikes that the hotel pipeline is partly built to absorb.

Where the growth opportunity sits

The mega-projects attract the headlines. The more accessible growth sits below them.

Domestic experiences. Three in four tourists are Saudi. Experiences, short breaks, and weekend products designed for residents have the largest audience in the sector.

Raising domestic spend. The domestic tourist spends a fraction of the inbound visitor. Even a modest rise in domestic spend per trip would add billions to the sector.

Operators and services. Nearly 95,000 new rooms will need managers, trained staff, suppliers, and destination partners. Every new hotel creates a supply chain.

Destinations beyond the holy cities. Non-religious inbound travel is now the majority. Regional destinations that build a clear identity can capture that demand.

What to watch

Three measures will show whether this growth holds.

First, watch inbound arrivals through the rest of 2026. The first-quarter drop may be temporary, or it may signal sensitivity to regional events. Second, watch domestic spend per trip. Volume is proven, but value is not. Third, watch occupancy as the pipeline opens. Rising supply must meet rising demand, or rates will come under pressure.

The sector has already shown it can grow. The next chapter is about growing well.

Sources

Per-visitor spending figures and the growth rate required to reach 150 million are Arabian Growth calculations based on the official figures above.