Saudi Arabia’s hospitality industry is entering a dynamic new phase of expansion, with around 94,500 hotel rooms currently under construction or in the final stages of planning. This growth builds on an existing base of 171,650 rooms, reflecting the rapid transformation underway across the Kingdom’s travel and tourism landscape.

The latest Saudi Report by global property consultancy Knight Frank highlights how the sector’s evolution mirrors the country’s wider economic diversification, with 2024 marking a particularly strong year as travel and tourism grew by 32 percent.

Robust performance and record spending

According to Oussama El Kadiri, Partner and Head of Hospitality, Tourism & Leisure Advisory for MENA at Knight Frank, the market’s momentum is being fueled by a mix of government-led reforms, private sector investment, and changing consumer behaviors.

In 2024, the tourism sector contributed SAR444.3 billion to the Saudi economy, accounting for 11.5 percent of GDP, the highest proportion in the region. Early 2025 figures continue that trend, with international visitor spending rising 9.7 percent year-on-year to SAR49.4 billion, and total tourism expenditure reaching SAR284 billion, up 11 percent.

Saudi Arabia welcomed 29.7 million international visitors in 2024—an 8 percent increase—alongside 86.2 million domestic trips, up 5 percent from the year before. International travelers accounted for SAR169 billion of total spending, a 19 percent jump compared to 2023.

“Saudi Arabia’s tourism scene is evolving fast, powered by higher-value travelers and world-class hospitality projects being delivered under Vision 2030,” said Faisal Durrani, Partner and Head of Research, MENA at Knight Frank. “The government has now raised its 2030 target from 100 million to 150 million annual visitors, with religious tourism expected to make up about one-third of that figure.”

Religious and leisure travel on the rise

Religious tourism remains the backbone of the market. In 2024, the Kingdom hosted 1.8 million Hajj pilgrims and 35.7 million Umrah pilgrims, including 16.9 million international visitors—a 25 percent increase and the highest number ever recorded.

At the same time, leisure travel is expanding rapidly. Non-religious international travelers now account for 59 percent of arrivals, up from 44 percent in 2019. Spending on holiday and leisure trips alone reached SAR36.4 billion in 2024.

Asia continues to lead as the top source region with 9.7 million visitors, followed by Egypt (3.2 million), Pakistan (2.8 million), and Bahrain (2.6 million).

Expanding hotel supply

Between January and August 2025, the average daily hotel rate nudged up to SAR746 ($199), while occupancy levels rose to 61 percent, pushing revenue per available room up by 1.3 percent. By September 2025, Saudi Arabia’s total quality hotel inventory reached 171,650 rooms, with an additional 18 percent increase expected by 2027.

Nationwide, about 358,000 new hotel rooms are in the pipeline. Four major “mega-projects” are leading this expansion, particularly in the holy cities and key urban centers:

• Rua Al Haram – over 70,000 keys

• Rua Al Madinah – around 47,000 keys

• Knowledge Economic City – about 42,000 keys

• Masar Makkah – roughly 41,000 keys

Domestic travel trends

Domestic tourism remains the largest segment, with Saudi citizens making up 74.3 percent of visitors in 2024. Roughly one in three Saudis travels within the Kingdom every two to three months, a number that rises to half among those earning more than SAR80,000 monthly.

Staycations are now a major trend:

• 36 percent favor long weekend trips (4–6 days)

• 20 percent take full-week stays

• 67 percent of high earners prefer 7–10-day getaways

Since 2019, around 250,000 Saudis have relocated to Riyadh, largely due to the city’s strong job market—it has accounted for two-thirds of new employment opportunities since then.

Favorite domestic destinations include:

• Makkah – the most visited city (42%)

• Riyadh – most popular among high earners (61%), tied with Jeddah (40%) as key business and cultural centers

• Dammam Metropolitan Area – 16 percent

• Abha (24%), Taif (22%), and Al-Ula (20%) – appreciated for their cooler climate and heritage attractions

Rising demand for high-end hospitality

Currently, around 60 percent of Saudi Arabia’s hotel rooms fall under luxury, upper-upscale, or upscale categories—a share expected to rise to 76 percent by 2030. This shift reflects growing consumer preferences, with 83 percent of travelers favoring four- or five-star stays.

Serviced apartments have also gained popularity, representing 22 percent of total stays, while resorts have grown to 11 percent, helped by ongoing Red Sea projects that will add about 8,000 rooms by 2030.

El Kadiri summed up the trend, saying:
“Saudi Arabia’s tourism and leisure industry is on the verge of historic change. By merging pilgrimage, heritage, and modern leisure experiences, the Kingdom is building a tourism identity where luxury meets authenticity—and ambition meets results.”

Pilgrims arriving in Madinah after completing the Hajj rituals are continuing to visit the historic Quba Mosque, incorporating it into their broader itineraries of Islamic and historical sites connected to the life of Prophet Muhammad.

Regarded as the first mosque established in Islam and founded on the principle of piety, Quba Mosque holds deep religious importance. Many visitors make a point of praying there, following the Sunnah of the Prophet Muhammad (peace be upon him) and acknowledging its spiritual and historical significance.

In recent days, the mosque and its surrounding courtyards have experienced steady visitor activity, particularly as post-Hajj pilgrims arrive in the city. Authorities have implemented an integrated service system to manage crowds, support visitor movement, and ensure a smooth and peaceful worship experience.

Quba Mosque remains one of the most important destinations for pilgrims in Madinah, alongside the Prophet’s Mosque and other notable Islamic heritage sites, offering visitors an opportunity to engage with the city’s religious and historical legacy.

The post-Hajj period has brought a noticeable rise in visitors to Madinah, as pilgrims from various countries arrive at the Prophet’s Mosque and extend their journey to explore the city’s major Islamic and historical landmarks.

A significant number of visitors are including Quba Mosque in their itinerary, recognized as the first mosque established on the foundation of piety. The site receives thousands of worshippers daily, who come to pray and engage with its religious and historical background.

Al-Qiblatain Mosque also continues to draw attention due to its historical role in the change of the Qibla direction from Al-Aqsa Mosque to the Grand Mosque in Makkah, marking an important moment in Islamic history.

Meanwhile, the Mount Uhud area, along with its surrounding courtyards, remains a key destination for visitors. Many travel to the site of the Battle of Uhud and the nearby Martyrs’ Cemetery to reflect on the historical events associated with the location.

Organized visitation programs also include several additional religious and heritage sites across Madinah, reflecting the city’s deep historical significance within Islamic civilization.

Authorities are managing the increased flow of visitors through coordinated operational measures, including structured movement plans, guidance services, awareness efforts, and transport links connecting the Prophet’s Mosque with major landmarks.

The continued arrival of pilgrims after Hajj highlights Madinah’s enduring status as one of the most important destinations for religious and cultural tourism in the Islamic world.

Authorities in Jeddah have completed preparations for the summer season at 12 beaches and waterfront destinations, introducing an expanded safety and operational framework aimed at protecting visitors and improving the coastal experience.

As part of the initiative, the Jeddah Municipality has assigned 66 lifeguards and 34 supervisors across key recreational areas. The deployment is intended to strengthen safety oversight and ensure adherence to regulations governing beach activities.

Municipal teams will also carry out routine inspections throughout the season to verify facility readiness and maintain public safety standards as visitor numbers increase during the summer holidays and following the Hajj pilgrimage.

Officials have advised visitors to follow established safety procedures, including swimming only between sunrise and sunset, remaining within designated swimming zones, complying with lifeguards’ instructions, and ensuring children are closely supervised at all times.

The municipality said the measures form part of its broader efforts to enhance quality of life, improve marine safety standards, and support the continued development of Jeddah’s coastal tourism and recreational attractions.

The Prophet’s Mosque continues to stand as one of the world’s most remarkable examples of Islamic architecture, combining centuries of heritage with exceptional craftsmanship and innovative design.

Located in the heart of Madinah, the mosque reflects the richness of Islamic artistic traditions through its carefully designed structures, intricate details, and expansive prayer spaces that welcome millions of worshippers and visitors each year.

Among its most striking features are the ornate movable domes, decorated with geometric patterns that highlight the beauty and precision of Islamic design. The mosque’s historic minarets also tell the story of its evolution, representing successive expansion projects carried out over the decades while preserving its distinctive identity.

Throughout the mosque’s arcades and courtyards, visitors can admire finely crafted Islamic motifs and decorative elements that demonstrate a high level of artistic excellence. Elegant gilded chandeliers add to the grandeur of the interior, enhancing the spiritual atmosphere of the sacred site.

The mosque’s massive gates reflect the scale of Saudi Arabia’s expansion efforts, which have significantly increased its capacity to accommodate growing numbers of pilgrims and visitors from around the world.

Outside, the iconic giant umbrellas that cover the courtyards provide shade and comfort for worshippers, particularly during warmer months. Blending functionality with architectural beauty, these structures have become one of the most recognizable features of the Prophet’s Mosque and contribute to a more comfortable visitor experience.

As one of Islam’s holiest sites, the Prophet’s Mosque remains a symbol of faith, history, and architectural achievement, attracting millions of visitors who come to experience its spiritual significance and timeless beauty.

Saudi Arabia’s aviation industry is moving into a new growth cycle as airlines expand their fleets and strengthen regional and international connectivity, supported largely by new narrowbody aircraft orders.

This rapid expansion is expected to significantly increase the need for trained pilots across the region. Industry projections from the Boeing Pilot and Technician Outlook estimate that the Middle East will require more than 58,000 new pilots over the next 20 years as carriers scale up operations and route networks.

Saudi Arabia is expected to account for a large portion of that demand, reflecting its ongoing investment in aviation development and airline capacity growth.

The pressure is not limited to the region. Global forecasts show similar trends across key markets. CAE’s Aviation Talent Forecast suggests North America could need over 130,000 pilots by 2032, while the Asia-Pacific region may face a shortfall of more than 250,000 pilots.

Aviation experts say this simultaneous expansion is placing significant strain on global training systems and simulator capacity.

Martynas Mazeika, Chief Growth Officer at BAA Training, part of Avia Solutions Group, said the pace of airline expansion is reshaping training requirements. He noted that as new aircraft enter service each year, demand for qualified pilots is rising in parallel, requiring airlines to rely on scalable training partnerships and international resources.

He added that access to simulator capacity and flexible training programs is becoming increasingly important for airlines managing long-term fleet growth.

Based on Boeing’s estimates and standard requirements of around 200 flight hours per pilot, training more than 58,000 pilots in the Middle East would require roughly 11.6 million flight training hours.

By comparison, a typical flight academy operating around ten training aircraft generates only about 12,000 to 15,000 hours annually, underscoring the scale of capacity expansion needed to meet demand.

Simulator training presents a similar challenge. Preparing pilots would require approximately 1.1 million hours on full flight simulators. With each simulator typically delivering 5,000 to 6,000 training hours per year, industry capacity will need to expand significantly.

Mazeika said fleet expansion is not limited to the Middle East, pointing out that airlines in North America, India, and Southeast Asia are also increasing aircraft orders. He stressed that access to global training infrastructure is becoming a key factor in supporting airline growth strategies.

As Saudi carriers continue to grow their narrowbody fleets, demand is expected to rise for type rating and recurrent training, which prepare pilots for new aircraft and maintain operational standards as networks expand.

BAA Training currently provides type rating, recurrent training, and simulator-based programs through its global network of training centres and partners.

With aviation expansion accelerating across Saudi Arabia and the wider Middle East, industry stakeholders say that scalable training systems and international cooperation will be essential to keep pilot supply aligned with fleet growth.

Source: ZAWYA