Hospitality Industry In The Kingdom Of Saudi Arabia Market Size (2024 - 2029)

Hospitality in Saudi Arabia Market Analysis

The Hospitality Industry In The Kingdom Of Saudi Arabia Market size is estimated at USD 13.23 billion in 2024, and is expected to reach USD 16.91 billion by 2029, growing at a CAGR of 5.03% during the forecast period (2024-2029).

The hospitality industry in Saudi Arabia expanded dramatically in the past few years due to several noteworthy government initiatives to develop the hotel industry and increase the nation's total tourism targets. Saudi Arabia is the travel destination with the fastest growth rate in the world, according to the G20. The UNWTO reports that foreign visitor visits in the Kingdom rose by 125% to pre-pandemic levels last year, attracting around 94 million tourists and outpacing the global tourism industry's rebound.

Saudi Arabia plans to invest over USD 550 billion in new travel destinations in the coming six years, making it the world's largest investor in tourism. It is due to its efforts to grow its tourist and hospitality sectors. Saudi Arabia led the Arab ranks for inbound tourism in the first three quarters of the previous year, with about 20 million tourists visiting the Kingdom. With the recent approval of the legislation, the industry hopes to contribute 10% of GDP in the coming six years and reach the goal of 100 million annual tourist visits. Travel restrictions are lifted, and the door is opened for a flood of tourists into the Kingdom. It is due to the new visa regulations like e-visas and visas-on-arrival for visitors from 49 countries, further fueling the growth of the hospitality industry.

The hospitality sector is set up for faster expansion, and the area is currently at the top of the travel and hospitality world. In Saudi Arabia, Rotana is developing seven hotels, including five brand-new establishments in Riyadh that are now under negotiation. Over the next four years, these buildings will nearly quadruple the number of rooms the company operates in the Kingdom to 6,000.

Hospitality in Saudi Arabia Industry Segmentation

Hospitality falls under the broad umbrella of the service industry, a tertiary sector of the economy. It includes food & beverages, stay, travel, theme parks, hotels, and event planning, amongst others. The Saudi Arabian hospitality industry is segmented by type and segment. By type, the market is segmented into chain hotels & independent hotels. By segment, the market is segmented into service apartments, budget and economy hotels, and mid-scale and upper-mid-scale luxury hotels. The report offers market size and forecasts for the Saudi Arabian Hospitality Market in value (USD) for all the above segments.