The pace is staggering. Rooms are being added. Hotels are opening. Investors are showing up with plans and blueprints. Walk through any of Saudi Arabia’s major cities in 2024, and the signs of change are everywhere, from the polished lobbies of boutique stays to the cranes rising above future five-stars. The hospitality sector’s growth in Saudi Arabia is reshaping the landscape.
Saudi Arabia Hotel Industry Sees Record Growth in 2024
In 2024, the Saudi Arabia hotel industry added more than 443,000 licensed rooms. That’s a 107% jump from the year before. The number of licensed hospitality facilities reached 3,950—up by 99%. Private tourism facility licenses surged by 330%, climbing from 1,900 in 2023 to over 8,300.
The Ministry of Tourism’s efforts have been central to this momentum. Licensing is faster. Regulations are clearer. And investors, local and global, are coming in with confidence. The hospitality sector’s growth in Saudi Arabia continues to reflect the country’s long-term commitment to becoming a top global destination.
Rapid Expansion in Tourism Accommodation Sector
There’s been a sharp rise in hotel capacity. In Q3 2024 alone, room inventory rose from 214,600 to 443,200. A 107% increase in just a year. Not just seasonal but steady, meaningful growth.
Tourist arrivals are rising too. Inbound numbers reached 27.4 million in 2023. Demand is meeting supply, and the hospitality sector’s growth in Saudi Arabia is scaling up to match.
Accommodation in Saudi Arabia – A Place for Every Traveler
Whether you’re visiting for a religious journey or a Red Sea escape, accommodation in Saudi Arabia is more diverse than ever.
Luxury That Reflects Local Prestige
Brands like Waldorf Astoria, Shaza, and Raffles are expanding across cities like Madinah, Jeddah, and Riyadh. They’re not just opening properties. They’re introducing a new kind of hospitality rooted in elegance and cultural depth. This is another sign of the hospitality sector’s growth in Saudi Arabia, catering to high-end travelers.
Options That Meet You Where You Are
Domestic tourism has fueled the rise of mid-range and budget-friendly stays. In places like Al Ahsa and Abha, comfort now comes at a wider range of price points. These stays are well-managed, accessible, and thoughtfully designed.
Stays That Feel Personal
Boutique hotels are offering more than rooms. You’ll find locally inspired architecture, regional flavors on the table, and thoughtful spaces. Brands like Mysk and Shaza are crafting experiences that resonate with travelers seeking connection.
Sustainable by Design
The Red Sea Project is now a global reference for environmentally conscious tourism. It’s inspiring more developments across the country that prioritize sustainability without sacrificing guest comfort. A shift is happening—eco-friendly is no longer niche, and it plays a major part in the hospitality sector’s growth in Saudi Arabia.
Growth of Hospitality Industry in Saudi Arabia by Region
Makkah Province led the way in 2024 with over 1,000 licensed hospitality facilities. That’s an 80% increase. The city is adapting to serve millions of pilgrims with better capacity and services. But the movement isn’t limited to major hubs.
Places like Tabuk and Najran are welcoming new investments. Licensing reforms are making it easier for projects to launch in emerging destinations. The Saudi Arabia tourism map is expanding, and with it, opportunity and further evidence of the hospitality sector’s growth in Saudi Arabia.
Saudi Arabia Vision 2030 Tourism Goals in Action
Progress across the Saudi Arabia hospitality sector is deeply aligned with Vision 2030 tourism goals. The milestone of 100 million visitors per year has already been surpassed. The next target is 150 million. Tourism now contributes 10% to the national GDP.
Minister Ahmed Al-Khateeb announced that Saudi Arabia is aiming for 550,000 hotel rooms by 2030. Around 75,000 will be built through private contracts. Growth is happening not only at the top—it’s becoming widespread. These milestones reflect the broader hospitality sector’s growth in Saudi Arabia.
Technology in Saudi Arabia’s Travel Industry
From SARA to Riyadh Air’s digital-first systems, technology in Saudi Arabia’s travel industry is improving every touchpoint. Planning, booking, navigation—it’s all becoming more intuitive.
SARA isn’t a typical chatbot. She’s an AI-powered smart guide designed by the Saudi Tourism Authority to feel personal. Her responses are warm, informed, and culturally rooted—offering real-time recommendations, local insights, and suggestions that reflect the spirit of a curious Saudi traveler.
Digital integration is taking hospitality to new levels. Riyadh Air’s launch in 2025 will bring AI-enhanced operations across the travel experience, from intelligent booking flows to customized onboard services. The goal is frictionless travel from the moment you decide to visit.
Online platforms are evolving too. Booking.com, Agoda, Airbnb, and local options like Diriyah.sa are helping travelers connect with places in smarter ways. Saudi Arabia’s own tourism platforms are gaining traction, showing the country’s growing strength in digital infrastructure and how tech supports the hospitality sector’s growth in Saudi Arabia.
People Behind the Progress
Every new room means new teams. Thousands of jobs are opening up. Training centers and scholarships are supporting a wave of hospitality professionals. The sector isn’t just creating experiences—it’s creating careers. Another layer to the hospitality sector’s growth in Saudi Arabia.
Hospitality Sector Uptrend in Saudi Arabia
With more hotels opening, quality is in focus. Saudi Arabia is competing with global destinations, including neighbors like the UAE. The commitment is clear: better guest experiences, stronger service standards, and deeper cultural immersion.
The new Tourism Law helps ensure accountability and transparency. Campaigns like “Our guests are a priority” are shaping a new kind of service culture.
The Future of Tourism Infrastructure Development in Saudi Arabia
The rise in Saudi Arabia’s hospitality sector in 2024 set the tone. The 2030 vision includes mega-projects like NEOM and Diriyah Gate. But growth is also coming through hundreds of new mid-scale properties. The approach is layered, scalable, and future-facing.
Tourism is being built not just to attract but to welcome. To stay relevant. To feel rooted in place and people.
A new chapter is unfolding in Saudi Arabia’s hospitality story. It’s more than numbers. It’s the start of a hosting culture ready to meet the world with open arms, and a defining moment in the hospitality sector’s growth in Saudi Arabia.
FAQs
How many hotel rooms are there in Saudi Arabia as of 2024?
Saudi Arabia has 443,200 licensed hotel rooms as of Q3 2024, reflecting a 107% increase from the previous year.
What role does Vision 2030 play in the hospitality sector?
Vision 2030 aims to diversify the economy. It has helped tourism reach 10% of GDP and targets 150 million annual visitors by 2030.
What types of accommodations are available for travelers in Saudi Arabia?
Saudi Arabia offers luxury, mid-range, budget, boutique, and eco-friendly accommodations to meet different traveler needs.
Which areas saw the most hospitality development in Saudi Arabia in 2024?
Makkah Province led growth, with emerging regions like Tabuk and Najran also seeing increased investments.
How is technology improving the hospitality experience in Saudi Arabia?
From AI guides like SARA to digital-first airlines like Riyadh Air, technology is enhancing travel planning, booking, and customer service.
