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.”

Off the coast of Jeddah, Thuwal Private Retreat offers a secluded island getaway that sets itself apart from conventional luxury resorts. Described as Saudi Arabia’s only private island available for exclusive buyout, the retreat accommodates one group at a time, offering privacy and a personalised stay surrounded by the Red Sea.

The 40-minute boat journey from the mainland provides a gradual escape from everyday routines. As the island comes into view, the sense of separation from the outside world becomes increasingly apparent.

The arrival experience reflects the attention to detail that defines the retreat. Before guests reach the marina, the team gathers practical information, including shoe sizes, to ensure equipment such as snorkelling gear is ready upon arrival.

Privacy and Saudi Hospitality

Thuwal Private Retreat accommodates up to 12 adults and three children across six beachfront villas. With the entire island reserved for a single group, guests can enjoy a stay tailored to their preferences.

The experience is shaped by hafawah, a Saudi tradition associated with generous and heartfelt hospitality. Rather than feeling formal or scripted, the service is characterised by personal attention and a welcoming atmosphere.

During an introduction to the island, guests learn about its history and natural environment, including the Turquoise Hole, a distinctive natural water formation.

One of the retreat’s principal gathering places is the Overwater Diwaniya, a relaxed venue above the sea. It serves as a setting for breakfast, coffee, lunch and sunset gatherings, bringing guests together throughout the day.

Dining Above the Red Sea

Dining is another highlight, with menus featuring fresh seafood, barbecue dishes, colourful salads and daily grilled specialities. The combination of relaxed service and an exclusive waterfront setting gives meals an informal yet refined character.

Watching the Maldivian chef prepare food over charcoal adds a personal element to the experience, turning meals into part of the island’s wider appeal.

Across the stay, the hospitality team maintains a consistent focus on warmth, attentiveness and generosity. The service feels natural, with staff taking pride in making guests comfortable.

A Villa Designed Around Nature

Royal Villa One offers a private setting where natural materials and expansive views connect the interior with the surrounding landscape.

Bamboo ceilings, earthy textures and floor-to-ceiling glass walls bring the outdoors into the living spaces, with views of the sea visible from almost every corner.

The bedroom features a canopy bed and flowing fabric details, creating an atmosphere of understated luxury. Even smaller elements, including the slippers, reflect the attention given to comfort.

In the bathroom, a glass-walled shower overlooks a private garden. Toiletries and grooming essentials are carefully arranged to make the stay convenient.

Outside, a secluded garden leads to a private dining area overlooking the water, creating an intimate setting for meals and quiet moments.

Exploring the Island’s Marine Life

The Red Sea is central to the retreat’s appeal. Its changing shades of blue provide a backdrop for activities including snorkelling, kayaking and paddleboarding.

Guided snorkelling excursions take guests to coral reefs and less-explored areas around the island. Underwater cameras provided by the guides allow visitors to capture the experience without having to manage their own equipment throughout the trip.

The excursions offer a closer look at the marine environment while allowing guests to remain immersed in the experience.

Wellness and Memorable Evenings

The island’s spa provides another opportunity to unwind. A floral foot ritual and citrus aromatherapy begin the treatment, followed by a massage designed to promote relaxation.

The spa experience combines professional treatment with a calm setting, complementing the retreat’s emphasis on slowing down and enjoying the surroundings.

Evenings bring a different atmosphere. Sunsets beside the pool transform the sky into shades of gold and blue, while seabirds occasionally add to the stillness of the scene.

The programme also includes hands-on and social activities. Guests can make manakish with the chef, take part in group pizza sessions, enjoy long lunches beside the sea or watch a film during a beach cinema evening.

These experiences provide variety without taking away from the island’s defining sense of tranquillity.

An Escape That Lingers

Leaving Thuwal Private Retreat can be an emotional experience, particularly after several days of personalised service and shared activities. The farewell from the team, with staff waving as the boat departs, reinforces the personal connections built during the stay.

The retreat’s appeal lies not only in its villas, marine activities or dining, but also in the opportunity to step away from everyday demands and experience the Red Sea at a slower pace.

For travellers seeking privacy, thoughtful hospitality and a close connection with nature, Thuwal Private Retreat offers a distinctive island escape along Saudi Arabia’s western coast.

Source: Arab News

Waterfront walkways developed by Jazan Municipality are creating new opportunities for coastal tourism and outdoor recreation along Saudi Arabia’s Red Sea shoreline.

The pedestrian routes extend from the coast towards the sea, providing visitors with opportunities to enjoy marine views, observe aquatic life and watch sunsets.

Among the key attractions is the 600-metre Sunset Walkway, which includes 55 seating areas, illuminated pedestrian paths, children's play zones, public facilities and retail kiosks. The commercial spaces also provide opportunities for local families involved in cottage industries to sell their products.

The walkway offers panoramic views of the Red Sea while creating a space for leisure activities and family outings.

Jazan Municipality spokesperson Dr. Ibrahim Al-Khayyat said the projects make use of the region’s coastal landscape to develop accessible public spaces and encourage greater recreational activity.

He added that the developments are expected to stimulate commercial investment in cafés and retail outlets while supporting Saudi Arabia’s Vision 2030 objectives, particularly the Quality of Life programme.

Source: SPA

The distinctive rock formations of Saudi Arabia’s Hima Cultural Area shape its rugged landscape, blending natural beauty with archaeological evidence of human history across the Arabian Peninsula.

The rocks display a range of natural colours, including brown, orange, gold and earthy red. These hues become particularly vivid at sunrise and shortly before sunset, enhancing the area's visual appeal.

Archaeologist and tour organiser Mohammed Al-Mustaneer said the formations are closely connected to the site's archaeological importance. Their surfaces preserve ancient inscriptions, drawings and writings that provide evidence of human activity in the region over successive historical periods.

The rock art offers insights into the lives of communities that once inhabited or travelled through the area. The inscriptions and images help document their lifestyles, migration routes, hunting and herding activities, as well as the symbols and forms of expression they left behind.

Beyond its geological features, the Hima Cultural Area serves as an important natural and archaeological landmark, reflecting Najran's rich cultural heritage. Its combination of ancient human records and striking landscapes also highlights the region's potential as a destination for cultural tourism.

Preserving the site allows its historical evidence and natural features to remain accessible to visitors while safeguarding an important part of the Arabian Peninsula's heritage for future generations.

Source: SPA

The coast of Jabal Kushkush in the Farasan Islands Governorate of Jazan Region preserves a legacy of traditional pearl diving, having once served as an important anchorage for vessels returning from expeditions at sea.

Tour guide Othman Humuq said pearl divers historically used the coastal site as a sheltered place to rest, secure their boats and open oyster shells after their journeys. Local fishermen also relied on the surrounding waters for their activities.

Located near Abu Al-Tawq village on Farasan Al-Sughra island, approximately 60 kilometres from Farasan City, the area is widely known as Kushkush Beach.

The site is distinguished by its unusual geological landscape, featuring sea caves, rock cavities, natural passageways and large umbrella-shaped rock formations. These structures rise between three and six metres, giving the coastline its distinctive appearance.

With much of its natural environment remaining undisturbed, Jabal Kushkush continues to draw tourists and visitors seeking a quiet coastal escape. Visitor numbers tend to increase during the winter season, when the site’s natural scenery becomes a particular attraction.

The area offers a glimpse of the Farasan Islands’ maritime heritage while showcasing the geological features and coastal landscapes that contribute to Jazan Region’s tourism appeal.

Source: SPA

The mountain valleys of Saudi Arabia’s Jazan Region offer visitors a mix of rugged terrain, natural forests, rock formations and agricultural landscapes. Among these destinations, Wadi Qura in Baish Governorate stands out for its green farmland, scenic mountain views and rural atmosphere.

Agriculture remains central to the valley’s landscape and local heritage. Fertile soil has supported farming communities for generations, with cultivated fields stretching along the valley’s banks. Following rainfall, the surrounding land becomes greener, highlighting the area's natural beauty and its longstanding connection to agriculture.

The valley is particularly appealing to outdoor enthusiasts during the rainy season and periods of mild weather. Its open spaces and natural surroundings provide opportunities to explore the landscape, enjoy time outdoors and experience a quieter alternative to crowded urban destinations.

With its combination of agricultural heritage and mountain scenery, Wadi Qura offers visitors an opportunity to discover the rural character and natural attractions of the Jazan Region.

Source: SPA