KSA Hospitality Market Dynamics, Q2 2025
Saudi Arabia reached unprecedented tourism heights in 2024 with 29.7 million inbound visitors spending SAR 168.5 billion, while domestic tourism flourished with 86.2 million travellers contributing SAR 115.3 billion to the economy.
Leisure travel emerged as the fastest-growing segment for international visitors, with a 20% year-on-year increase in 2024, signalling successful diversification beyond the traditionally dominant religious tourism segment.
The Holy Cities of Makkah and Madinah demonstrated robust growth metrics, while Riyadh and Jeddah experienced more moderate or declining performance indicators, highlighting regional variations in market dynamics.
New hotel developments are increasingly positioned away from traditional city centres in Riyadh, with international operators driving high-quality supply growth to accommodate both the expanding business travel segment and emerging leisure demand.