Saudi Hotel Market Projected to Reach USD 15.4 Billion by End of 2024

Saudi Arabia’s hotel market is set to expand from USD 15.4 billion in 2024 to USD 27.26 billion by 2033, reflecting a compound annual growth rate (CAGR) of 6.55% according to latest research by market analysis firm, Research & Markets. This growth is driven largely by increased investment in upscale hotels and new government policies, including easier visa access for international tourists.

The Kingdom has become the world’s fastest-growing travel destination, with a 125% rise in international visitors, according to the UNWTO. Over the next six years, Saudi Arabia plans to invest USD 550 billion in tourism infrastructure, including projects like NEOM and the Red Sea Project, positioning itself as a global tourism hub.

The easing of travel restrictions and introduction of e-visas for 49 countries have significantly boosted foreign arrivals. Regional tourism is also on the rise, with Makkah’s hotel market catering to religious visitors, and Riyadh seeing growth from both business and leisure travel. Saudi Arabia aims to attract 100 million visitors annually by 2030, with the hospitality sector playing a key role in this vision.