Saudi Arabia Hotel Market Size and Growth Analysis (2024-2033)
The Saudi Arabia hotel market is set to experience significant growth, with projections indicating an increase from US$ 15.40 billion in 2024 to US$ 27.26 billion by 2033. This represents a robust CAGR of 6.55% from 2025 to 2033. The key factors driving this expansion include the growth of upscale accommodations, government reforms like streamlined visa regulations, and significant investment in tourism and hospitality infrastructure.
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Global Context: Saudi Arabia Hotel Industry Overview
In recent years, Saudi Arabia has experienced rapid expansion in its hospitality sector. The country has become the world’s fastest-growing travel destination, thanks to large-scale government initiatives aimed at boosting tourism. As per the UNWTO, international visitors to Saudi Arabia increased by 125%, surpassing pre-pandemic levels. In 2023, the Kingdom welcomed nearly 94 million visitors, demonstrating its strong recovery from the global tourism downturn. These figures underscore Saudi Arabia's ambitions to become a global hub for tourism and hospitality.
Key Highlights of Saudi Arabia Hotel Market Report
• Base Year: 2024
• Forecast Years: 2025 - 2033
• Market Size in 2024: US$ 15.40 Billion
• Market Forecast in 2033: US$ 27.26 Billion
• CAGR (2025-2033): 6.55%
The Saudi government’s commitment to the tourism sector is evident in its Vision 2030 initiative, which allocates over USD 550 billion for the development of new tourist destinations, infrastructure projects, and the expansion of the hospitality sector. As part of this vision, Saudi Arabia aims to attract 100 million tourists annually and to contribute 10% of GDP to the tourism sector by 2030.
Growth Drivers for the Saudi Arabia Hotel Market
1. Vision 2030: Spearheaded by Crown Prince Mohammed bin Salman, Vision 2030 is transforming Saudi Arabia’s economy by reducing its reliance on oil and investing heavily in tourism and hospitality. The initiative includes building major attractions like the Red Sea Project and NEOM, both of which promise to bring global attention to Saudi Arabia as a prime tourist destination.
2. Increased International Tourism: The introduction of easy-to-obtain e-visas and visas on arrival for citizens from 49 countries has made Saudi Arabia more accessible than ever. Additionally, Saudi Arabia’s active hosting of major cultural events, sporting events, and festivals further draws international tourists.
Saudi Arabia Hotel Market Overview by Region
Saudi Arabia’s hotel industry is marked by regional distinctions:
• Makkah: The primary destination for religious tourism, driven by Hajj and Umrah pilgrimages. The city boasts high-end and budget hotels near the Haram, with demand peaking during religious seasons.
• Riyadh: The capital city, Riyadh, sees growth in both business and leisure tourism. Its hotel market is bolstered by the ongoing Vision 2030 developments, attracting both corporate and leisure travelers.
• Jeddah: Known for its coastal attractions and proximity to Mecca, Jeddah’s hospitality sector caters to both pilgrims and tourists seeking leisure experiences.
• Madinah: Another key religious hub, offering a mix of accommodations for pilgrims visiting the Prophet’s Mosque.
• Al Khobar and Dammam: The Eastern province’s cities cater to the growing business tourism market and serve as gateways to the Gulf region.
Company Analysis in the Saudi Arabia Hotel Market
Several leading hotel chains are playing a key role in Saudi Arabia’s hospitality landscape, including:
1. Dur Group
2. IHG Group
3. Marriott International
4. Accor
5. Hilton Hotels
6. Al Hokair Group
7. Altyaar Group
Recent Developments in the Saudi Hotel Market
• Marriott International expanded its brand portfolio by acquiring City Express in May 2023, launching a new offering for budget-conscious travelers.
• Dur Hospitality, in collaboration with Taiba Investments, acquired a 100% stake in Dur Hospitality in a deal involving SAR 2.5 billion worth of hotel investments. This transaction reflects the Kingdom’s dedication to upgrading its hospitality infrastructure.
Market Breakdown by Hotel Type
• High-End Hotels
• Mid-Scale Hotels
• Budget Hotels
Market Breakdown by Distribution Channel
• Online Platforms
• Offline Channels
Regional Breakdown
• Makkah
• Riyadh
• Madinah
• Jeddah
• Al Khobar
• Dammam
Related Report :
India Hotel Market
Japan Hotel Market
China Hotel Market

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