Turab Saleem, partner and head of Hospitality, Tourism & Leisure Advisory, Knight Frank MENA emphasizes Saudi Arabia’s emergence as a major global tourism market, driven by ambitious giga and mega projects.

Saudi Arabia will deliver 320,000 new hotel rooms by 2030, with a development cost of USD 37.8 billion. Furthermore, this ambitious endeavor is part of its extensive investment in infrastructure and tourism transformation. According to industry data, tourism spending in KSA nearly doubled to USD40 billion last year, up almost 43 percent from 2022.  

Tourism growth  

Aligned with Vision 2030, numerous new hotels, resorts and tourist attractions are scheduled to open in the next six years.

Having surpassed its initial tourism target, Saudi Arabia welcomed 77 million domestic travelers and 27 million international tourists in 2023. This achievement was seven years ahead of schedule. Moreover, the new target is to attract 150 million annual visitors by 2030. Furthermore, more substantial growth is expected from Muslim-majority nations like Bahrain, Kuwait and Egypt.

Expansion of hotel offerings

Religious tourism remains pivotal, with 27 million pilgrims visiting in 2023, nearly triple the pre-Covid numbers, contributing over USD26 million to the economy. Additionally, plans include adding 221,000 new hotel rooms in Maddah and Madinah to accommodate this influx.

Strategic initiatives and events

Knight Frank’s analysis reveals that 66 percent of KSA’s current hotel supply falls into luxury and upscale categories. Furthermore, it is projected to expand to 72 percent by 2030, amounting to approximately 251,000 rooms. This growth will necessitate accommodating between 232,000 to 387,000 key workers, presenting new investment opportunities in team member housing.

Turab Saleem of Knight Frank MENA highlights Saudi Arabia’s goal to attract 150 million visitors by 2030 through strategic initiatives. These include cultural and entertainment developments, such as new theme parks and events like Jeddah F1 Grand Prix.

Hotel operators and market projections

Riyadh’s hosting of the 2030 World Expo and the 2034 FIFA World Cup promises significant economic boosts and international visibility. Furthermore, this reinforces Saudi Arabia’s tourism ambitions. Additionally, Marriott International and Accor Hotel Group are poised to dominate the hotel market, with expected key expansions by 2030.

In conclusion, with a new target of welcoming 150 million visitors by 2030  the KSA government is actively exploring various strategies to attract travelers.