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.”

Kuwait’s acting director general of civil aviation, Duaij Al-Otaibi, has said that Kuwait International Airport is secure and prepared to fully resume operations once clearance is granted by the relevant authorities.

Speaking to Kuwait News Agency on Monday, Al-Otaibi stressed that safeguarding passengers, personnel and infrastructure remains the primary concern guiding all operational decisions. He described the current security arrangements as precautionary steps aimed at maintaining high protection standards, acknowledging that they may cause some inconvenience to travellers.

He noted that the airport is gradually restoring activity levels to those seen before the recent Iranian aggression, with improvements underway in both performance and operational efficiency. Passenger flow is being carefully managed to ensure smooth movement from parking areas to terminals.

As part of temporary security protocols, boarding gates are not currently in use, with passengers transported to aircraft by bus. Authorities are reviewing the situation and may reinstate standard boarding procedures following further assessment.

Additional support has been introduced for elderly passengers and those with disabilities, including electric wheelchairs and improved access through elevators. Al-Otaibi added that the main terminal entrance is expected to reopen in the coming days after coordination with key bodies such as the Ministry of Interior and the General Fire Force.

He said the measures form part of a wider safety strategy, supported by weekly operational reviews to facilitate a phased return to normal services.

Al-Otaibi also revealed that the airport’s control tower—considered among the most advanced globally—was targeted during the recent attack, with damage recorded through audio and video documentation. The incident drew condemnation from the International Civil Aviation Organization. He added that radar and technical systems were quickly repaired through coordinated efforts and leadership support.

Senior officials, including His Highness Sheikh Ahmed Abdullah Al-Ahmed Al-Sabah, conducted on-site inspections to assess the damage and commended the level of preparedness and compliance with safety standards. The Civil Aviation Authority, led by Sheikh Hamoud Mubarak Al-Hamoud Al-Sabah, implemented emergency and security protocols in coordination with multiple agencies, reflecting a high level of institutional cooperation.

Al-Otaibi also acknowledged the role of Sheikh Abdullah Ali Abdullah Al-Salem Al-Sabah in overseeing readiness efforts, as well as the support of the General Authority of Civil Aviation for facilitating Kuwaiti airline operations through access to Saudi airports. He said such collaboration underscores the importance of Gulf cooperation in maintaining aviation continuity.

Highlighting Kuwait’s long-term ambitions, Al-Otaibi pointed to the country’s advanced infrastructure, including a modern third runway, an upgraded control tower and sophisticated air navigation systems, positioning it as a potential regional aviation hub. He also cited Kuwait’s strategic location and connectivity projects, including links to Mubarak Al-Kabeer Port, as key factors supporting its development as a logistics centre.

Looking ahead, he outlined plans to establish a dedicated aviation academy to train national talent, noting the increasing participation of young Kuwaitis in the sector and the need to expand training programmes to meet future demand.

Despite ongoing regional tensions, Al-Otaibi said the security situation remains stable. He advised passengers to follow official guidance, avoid congestion, arrive at the airport at least three hours before departure and refrain from making unnecessary bookings that could disrupt operations.

Source: QCAA NEWS

Nigeria’s government has imposed limits on jet fuel prices and approved credit arrangements for airlines in an effort to prevent widespread flight disruptions linked to sharply rising fuel costs, according to an official document reviewed by Reuters.

The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) set indicative retail price ranges for aviation fuel between 1,760 naira and 1,988 naira per litre in Lagos, and between 1,809 naira and 2,037 naira in Abuja. These benchmarks are based on pricing data from April 17 to April 23.

Despite the pricing framework, the regulator cautioned that volatility in global energy markets, including tensions involving the United States and Iran, as well as higher supplier costs, could still push prices upward.

Neither the NMDPRA nor the aviation ministry immediately responded to requests for comment.

The policy shift follows emergency discussions triggered by airline warnings that jet fuel prices had surged by more than 270%. Operators said the spike had forced fare increases and raised concerns over potential capacity reductions.

Last week, President Bola Tinubu approved a 30% relief measure on airline debts owed to aviation agencies. He also directed fuel suppliers, airlines, and regulators to agree on a “fair” pricing structure within 72 hours to avoid disruption across the aviation sector.

As part of the agreed measures, airlines will be granted a 30-day credit period for fuel purchases. The aviation ministry has also been tasked with mediating outstanding debt disputes between operators and petroleum marketers, according to the document.

A technical committee established by the NMDPRA recommended that fuel marketers supply airlines directly within the approved price band, a move intended to reduce costs and improve transparency in the supply chain.

The committee also called for engagement with Dangote Petroleum Refinery and Petrochemicals regarding recently increased premiums applied to international pricing benchmarks used for jet fuel.

Additional recommendations include stricter validation of fuel distributors operating in airport zones, which could reduce the number of authorised suppliers, as well as exploring the inclusion of jet fuel under Nigeria’s naira-for-crude programme to limit airlines’ exposure to foreign exchange fluctuations.

(Exchange rate used: $1 = 1,360.5 naira)

Source: ZAWYA

The Dubai Civil Aviation Authority (DCAA) has introduced a new Aviation Consumer Welfare Directive designed to enhance passenger rights and improve how complaints and disputes are managed within the emirate’s aviation sector.

The initiative establishes a structured regulatory system that defines the relationship between passengers, airlines, and licensed travel agencies. It also introduces formal mediation processes, giving the regulator a more active role in resolving conflicts and protecting consumer interests.

Under the new framework, passengers will have access to a clearer and more transparent process for lodging and monitoring complaints. The DCAA will act as an intermediary, facilitating communication between involved parties and overseeing resolution procedures. Authorities say the system is intended to strengthen accountability and build greater trust across the aviation ecosystem.

The directive applies to all passengers travelling through Dubai’s airports, as well as airlines and authorised travel agents operating in the emirate. By formalising operational and service expectations, the framework aims to reduce disputes and improve consistency in handling passenger concerns.

The DCAA will be responsible for implementing and supervising the system, including establishing regulatory standards, enabling mediation channels, and ensuring compliance among all stakeholders. The broader objective is to improve service quality and enhance the overall passenger experience across Dubai’s aviation sector.

Source: ZAWYA

The Dubai Civil Aviation Authority (DCAA) has introduced a new Aviation Consumer Welfare Directive designed to reinforce protections for airline passengers and improve how complaints and disputes are handled within Dubai’s aviation industry.

The directive sets out a unified regulatory structure defining the relationships between passengers, airlines, and licensed travel agents. It also introduces a formal mediation process intended to resolve disagreements more efficiently, reflecting a more proactive regulatory approach to consumer protection.

Under the new system, passengers will have access to a transparent mechanism for lodging complaints and tracking their progress. The DCAA will act as a facilitator between relevant parties, ensuring communication is streamlined and disputes are addressed through structured resolution channels. Authorities say the initiative is intended to strengthen trust and accountability across the aviation sector.

The framework covers all passengers travelling through Dubai’s airports, along with airlines and authorised travel agencies operating in the emirate. By formalising operational relationships, it aims to improve transparency and reduce friction in the handling of customer grievances.

The DCAA will oversee the implementation of the directive, including the establishment of regulatory standards, mediation processes, and compliance monitoring. The authority stated that the broader objective is to enhance service quality and improve the overall passenger experience across Dubai’s aviation network.

Source: ZAWYA

Hamad International Airport has confirmed a continued expansion in flight activity, with more international airlines restoring operations as connectivity to Doha gradually strengthens.

In a statement shared عبر social media, the airport said additional airline partners are rejoining its network, noting that services are being reinstated in stages. Passengers were advised to check directly with their respective airlines for booking details and updated schedules.

Operational updates indicate a phased return of carriers over several weeks. flydubai resumed flights on April 21, followed by Air Arabia on April 22.

On April 23, services restarted for Oman Air, Tarco Aviation, US-Bangla Airlines, and Royal Jordanian.

Further resumptions followed on April 26, with Biman Bangladesh Airlines, Middle East Airlines, and Nepal Airlines returning to service. The next day saw operations restart for Badr Airlines and Syrian Air.

On April 28, flights resumed for EgyptAir and Himalaya Airlines.

Looking ahead, additional carriers are scheduled to return in May. Air India, Air India Express, and Gulf Air are expected to resume on May 1. Ethiopian Airlines will follow on May 4, with SriLankan Airlines on May 11 and Kam Air on May 16.

Royal Air Maroc is scheduled to restart operations later in the summer, beginning July 1.

Airport authorities emphasized that all flight activity is being coordinated closely with relevant regulators and airline partners. They also cautioned that schedules remain subject to change, with possible adjustments or cancellations due to factors outside operational control.

Source: ZAWYA