Kingdom of Saudi Arabia Hospitality Market Dynamics, Q1 2025

Saudi Arabia welcomed over 21.6 million international tourists in first 9 months of 2024, with religious pilgrimage remaining the primary motivator.

Meanwhile, the domestic market saw 63.9 million tourists, with leisure travel emerging as the dominant purpose.

While the Kingdom overall showed positive performance indicators, individual cities presented varied results.

Makkah and Madinah registered strong growth in key metrics, while Riyadh experienced declines in both occupancy and ADR. Jeddah displayed mixed results with decreasing ADR but rising occupancy.

Major cities are diversifying their tourism appeal beyond traditional segments.

Riyadh is expanding its leisure and entertainment events through initiatives like Riyadh Season, while Jeddah is repositioning its hospitality strategy to reduce reliance on government and corporate spending.