Saudi Arabia Hospitality Market Size, Share, Industry Trends and Report 2025–2033

Saudi Arabia Hospitality Market Size, Share, Industry Trends and Report 2025–2033

Saudi Arabia Hospitality Market Overview

Market Size in 2024 : USD 48.6 Billion

Market Size in 2033: USD 109.6 Billion

Market Growth Rate 2025-2033: 9.5%

According to IMARC Group's latest research publication,"Saudi Arabia Hospitality Market Size, Share, and Trends by Type Insights, Segments Insights and Regional Insights, and Forecast 2025-2033", The Saudi Arabia hospitality market size was valued at USD 48.6 Billion in 2024. Looking forward, IMARC Group estimates the market to reach USD 109.6 Billion by 2033, exhibiting a CAGR of 9.5% from 2025-2033.


Growth Factors in the Saudi Arabia Hospitality Market

Saudi Arabia’s Vision 2030 has been a game-changer for the hospitality industry in Saudi Arabia, driving economic diversification away from oil dependency. The government’s commitment to boosting tourism through streamlined visa processes, such as e-visas and visa-on-arrival for numerous countries, has made the Kingdom more accessible to international travelers.


Mega-projects like NEOM and the Red Sea Project are transforming the landscape, creating world-class destinations that attract both leisure and business tourists. For instance, the Red Sea Project, with its focus on sustainable luxury resorts, is drawing high-net-worth travelers, boosting demand for premium hospitality services and encouraging global hotel brands to invest in the region.


The hospitality market thrives on Saudi Arabia’s status as a global hub for religious tourism, particularly in Makkah and Madinah, which welcome millions of pilgrims annually. Additionally, business tourism is flourishing in cities like Riyadh and Jeddah, fueled by the Kingdom’s growing role as a commercial and events hub.


The hosting of international events, such as the Formula 1 Grand Prix, has spurred demand for diverse accommodations, from luxury to mid-scale hotels. For example, Riyadh’s growing MICE (Meetings, Incentives, Conferences, and Exhibitions) sector has led to increased hotel developments, with brands like Marriott expanding to cater to corporate travelers.


Massive infrastructure investments are reshaping Saudi Arabia’s hospitality landscape. New airports, transit systems, and tourism projects are enhancing connectivity and accessibility, making the Kingdom a more attractive destination. The Diriyah Gate project, a UNESCO-inspired cultural hub, exemplifies this trend, combining heritage with modern hospitality to draw tourists.


Additionally, the government’s licensing reforms have streamlined processes, encouraging both local and international investors. In 2024, the addition of numerous licensed hotel rooms highlighted this momentum, with private tourism facility licenses surging significantly, reflecting investor confidence and supporting the rapid expansion of hospitality offerings across the Kingdom.


Key Trends in the Saudi Arabia Hospitality Market

The shift toward online booking platforms is transforming how travelers engage with Saudi Arabia’s hospitality sector. With tech-savvy consumers prioritizing convenience, mobile apps and websites offer seamless access to a range of accommodations, from budget hotels to luxury resorts.


This trend is evident in cities like Jeddah and Riyadh, where platforms provide transparent pricing and reviews, empowering travelers to make informed choices. For instance, the integration of AI chatbots and loyalty programs by brands like Accor enhances user experience, driving bookings. This digital surge aligns with the global trend toward contactless transactions, accelerated by post-COVID preferences.


Sustainability is becoming a cornerstone of Saudi Arabia’s hospitality sector, with projects like the Red Sea Project setting global benchmarks for eco-friendly tourism. Hotels are adopting green practices, such as energy-efficient designs and waste reduction, to appeal to environmentally conscious travelers.


The Red Sea Project, for example, emphasizes sustainable luxury, offering high-end accommodations while prioritizing environmental preservation. This trend is not limited to luxury; mid-scale properties are also incorporating eco-conscious initiatives, reflecting a broader shift toward responsible tourism that resonates with both domestic and international guests seeking meaningful, sustainable travel experiences.


The rise of boutique hotels and lifestyle-oriented properties is reshaping Saudi Arabia’s hospitality market, catering to travelers seeking unique, personalized experiences. These properties focus on cultural authenticity and modern design, appealing to younger, affluent travelers.


For instance, brands like Shaza and Raffles are expanding in Madinah and Jeddah, offering culturally inspired stays that blend elegance with local heritage. This trend reflects a growing demand for experiential travel, where guests prioritize immersive experiences over standard hotel stays, driving operators to innovate and differentiate in a competitive market.


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Saudi Arabia Hospitality Industry Segmentation:

The report has segmented the market into the following categories:

Segment Insights:

Regional Analysis:


Competitive Landscape:

The competitive landscape of Saudi Arabia's hospitality market is characterized by rapid expansion and innovation, driven by ambitious national strategies and increased global attention. The market features a blend of luxury, mid-scale, and budget accommodations catering to diverse traveler segments, including religious pilgrims, business professionals, and leisure tourists.


Developers are focusing on integrating advanced technologies, eco-friendly practices, and unique cultural experiences to differentiate offerings. Additionally, the influx of international investments and partnerships is intensifying competition, while government-led initiatives are fostering opportunities in secondary cities and sustainable tourism. This dynamic environment is reshaping the industry and driving its continuous evolution.


Future Outlook

The Saudi Arabia hospitality market is poised for transformative growth, driven by Vision 2030’s ambitious goals to position the Kingdom as a global tourism powerhouse. With plans to triple hotel room capacity by 2030, projects like NEOM, Diriyah Gate, and Qiddiya will continue to attract diverse travelers, from luxury seekers to budget-conscious visitors. The focus on cultural, adventure, and sustainable tourism will broaden the Kingdom’s appeal, while technological advancements, such as AI-driven personalization and online booking platforms, will enhance guest experiences. Strategic partnerships with global hotel brands and ongoing infrastructure investments will ensure robust growth, cementing Saudi Arabia’s status as a premier hospitality destination.


Research Methodology:

The report employs a comprehensive research methodology, combining primary and secondary data sources to validate findings. It includes market assessments, surveys, expert opinions, and data triangulation techniques to ensure accuracy and reliability.


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