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.”

Thai Airways International is set to relaunch nonstop daily flights between Bangkok's Suvarnabhumi Airport (BKK) and Amsterdam's Schiphol Airport (AMS) on July 1, 2026, marking the carrier's return to the Dutch market after nearly 28 years.

The service will utilize modern Airbus A350-900 aircraft as part of Thai Airways' Northern Summer 2026 schedule, with bookings now open following an announcement in early 2026.

This revival restores a historic long-haul link between Southeast Asia and Europe, last operated by Thai Airways in 1998 before the airline withdrew from the Netherlands.

The move aligns with Thai Airways' strategy to expand its European network amid post-restructuring growth, boosting tourism, business travel, and cultural ties between Thailand and the Netherlands while enhancing competition on the route.

By adding this daily connection, Thai Airways aims to strengthen overall Thailand-Europe connectivity, complementing partnerships like codeshares with carriers such as TAP Air Portugal for broader reach.

The resumption reflects confidence in demand from the Benelux region and supports the airline's long-haul ambitions.

flydubai has announced the launch of a new double-daily service to Bangkok, further strengthening its footprint in Thailand and increasing its total operations to the country to 28 weekly flights.

The new route will commence on 15 September 2026, operating from Terminal 3 at Dubai International Airport (DXB) to Don Mueang International Airport (DMK). The addition of Bangkok marks the airline’s second destination in Thailand, complementing its existing service to Krabi.

With this expansion, flydubai continues to enhance its network in Southeast Asia, which also includes destinations such as Langkawi and Penang in Malaysia. The carrier’s growing regional presence reflects sustained passenger demand for travel between Dubai and key leisure and business markets across Asia.

Don Mueang International Airport, located north of central Bangkok, serves as one of the Thai capital’s two international gateways. Its strategic location provides convenient access for both corporate and leisure travellers visiting Bangkok and surrounding provinces.

Commenting on the launch, Hamad Obaidalla, Chief Commercial Officer at flydubai, said:

“Thailand continues to be a highly popular destination for both leisure and business travel. The introduction of our double-daily Bangkok service reflects strong and consistent demand across our network. Operating from Terminal 3 at Dubai International and under our codeshare partnership with Emirates, passengers will benefit from seamless connections via Dubai to destinations across the GCC, Europe and other international markets.”

The new service further reinforces Dubai’s position as a leading global aviation hub. flydubai’s network now extends to more than 135 destinations, offering customers expanded travel options and convenient one-stop connectivity.

Sudhir Sreedharan, Divisional Senior Vice President of Commercial Operations at flydubai, added:

“We are pleased to expand our presence in Thailand with the launch of double-daily flights to Bangkok. We look forward to welcoming passengers on board and providing a comfortable and reliable travel experience in both Economy and Business Class.”

As part of its continued investment in customer experience, flydubai offers thoughtfully designed cabins across both classes. Passengers can enjoy comfortable seating, internationally inspired dining options and a wide selection of inflight entertainment available through the airline’s onboard system.

Flight Schedule (All Times Local)

From 15 September 2026, flydubai will operate the following services between Dubai and Bangkok:

• FZ1335: DXB 11:00 – DMK 20:45

• FZ1336: DMK 23:50 – DXB 03:20

• FZ1345: DXB 01:20 – DMK 11:10

• FZ1346: DMK 12:10 – DXB 15:40

Fares

• Return Business Class fares from DXB to DMK start from AED 9,000, while Economy Class Lite fares start from AED 2,500.

• From DMK to DXB, return Business Class fares start from THB 64,000, and Economy Class Lite fares from THB 22,000.

Flights are available for booking via flydubai.com, the official flydubai mobile application, the UAE Contact Centre, flydubai travel shops and authorised travel partners.

Xiamen Airlines will resume its direct flights between Quanzhou Jinjiang International Airport in Fujian and Mactan–Cebu International Airport in the Philippines starting 29 March 2026. The twice-weekly service will operate every Tuesday and Saturday using Boeing 737-800 aircraft, featuring eight business-class and 162 economy seats. The flight takes just under three hours.

The move, announced on 14 February, follows recent bilateral talks that granted new traffic rights and improved ground-handling support ahead of the summer season. The reinstated route reconnects Quanzhou—a major manufacturing hub for shoes, garments, and stone products—with Cebu, the commercial heart of the Visayas region. It’s expected to make business travel and supply-chain visits much easier for companies that previously relied on indirect routes via Xiamen or Manila.

Philippine President Ferdinand Marcos Jr. welcomed the restart, calling it a “new chapter” in people-to-people exchange. The Chinese Embassy in Manila also confirmed that Xiamen Airlines plans to increase flights on its Xiamen–Manila route to meet stronger demand. The announcement comes after the Philippines introduced a one-year visa-free entry scheme allowing Chinese citizens to stay up to 14 days for tourism or business.

For corporate travelers, the renewed direct link offers a more convenient route between Fujian’s export clusters and Cebu’s logistics, repair, and electronics sectors. It also supports greater accessibility to Mindanao, where several Chinese companies are currently involved in infrastructure projects. Filipino travelers should note that China has yet to introduce a reciprocal visa-free policy, so visas remain required except for short transits of up to 24 hours.

The service will also provide around five tonnes of cargo space per flight, which is expected to benefit e-commerce and high-value shipments like electronics and fashion samples. Freight forwarders are advised to secure space early, as the route typically maintains load factors above 80% during peak export periods.

Oman Air is set to introduce a new nonstop service linking Dubai with Salalah, beginning on July 3, 2026. The route will operate three times weekly throughout the year, further enhancing air connectivity to the Dhofar Governorate and offering greater travel convenience for both residents and international tourists ahead of the much-anticipated khareef season.

The addition of the new service reflects the growing demand for travel between Salalah and Dubai, while reinforcing Oman Air’s ongoing efforts to expand its domestic network and strengthen regional air corridors within the Gulf Cooperation Council (GCC).

Oman Air Chief Executive Officer Con Korfiatis described the new route as a strategic step in advancing the airline’s role in national development. “Launching the Dubai–Salalah service highlights our continuous investment in enhancing regional connectivity in line with Oman’s broader economic and tourism ambitions,” he said.

“We’re responding to strong market demand by increasing capacity and creating more travel opportunities that support tourism and business growth across Dhofar. Oman Air remains a key enabler of connectivity and economic diversification under Oman Vision 2040.”

Consistent with its growth strategy, Oman Air continues to scale up operations on key domestic routes. Seat capacity to Salalah has increased by 20% in January 2026 compared to the same period last year, following a 15% expansion during the 2025 khareef season to handle the surge in visitors. The airline also launched its first direct charter between Moscow and Salalah, expected to attract over 7,000 travelers from Russia and contribute strongly to Dhofar’s tourism and hospitality sectors.

In addition, Oman Air plans further network and schedule enhancements, including expanded services during Ramadan, to provide passengers with even more flexibility and travel options throughout the year.

Tickets for the new Dubai–Salalah route will be available from Monday, February 16, 2026, through www.omanair.com and the Oman Air mobile application.

AirAsia X is launching new routes from Kuala Lumpur to Bahrain and on to London Gatwick starting June 26, 2026. This move positions Bahrain as the airline's first global hub outside Asia.

The service connects Southeast Asia, the Middle East, and Europe via Bahrain's prime location and strong aviation setup. Bahrain-to-London becomes AirAsia X's second Fifth Freedom route, helping it tap into worldwide low-cost long-haul travel.

AirAsia X sees Bahrain as a springboard for growth, with opportunities for transit traffic and partnerships in cargo and maintenance. It fits the airline's push to link regions efficiently while keeping fares affordable.

Tony Fernandes, Capital A CEO and AirAsia X advisor, called it a key growth step. "Bahrain lets us link Asia, the Middle East, and Europe better, plus scale up cargo like Teleport after its $50 million raise," he said. He plans deeper ties with local airports and tourism groups.

Bahrain's Finance and National Economy Minister, Shaikh Salman bin Khalifa Al Khalifa, welcomed the deal. "It boosts jobs in aviation, tourism, and logistics, plus skills for Bahrainis in this growing field," he noted. Bahrain aims to solidify its role as a regional connector.