Hospitality Industry In The Kingdom Of Saudi Arabia Market Size (2024 - 2029)

The market size of Saudi Arabia's hospitality industry has seen significant growth over the past five years, driven by increasing religious and leisure travel to the country. This has led to the introduction of numerous investment opportunities and projects aimed at fulfilling the Kingdom's Vision 2030. The surge in travel has also resulted in the opening of a large number of new hotels in key cities, with top-performing international brands entering the market through direct and strategic partnerships. This has added to the existing supply across all segments of the market, making the region an attractive prospect for investors.

Home Market Analysis Hospitality and Tourism Research Hospitality Research General Hospitality Research Hospitality Industry In The Kingdom Of Saudi Arabia Market Size

Market Size of Hospitality Industry In The Kingdom Of Saudi Arabia

Hospitality in Saudi Arabia Market Summary
Study Period 2020 - 2029
Base Year For Estimation 2023
Market Size (2024) USD 13.23 Billion
Market Size (2029) USD 16.91 Billion
CAGR (2024 - 2029) 5.03 %
Market Concentration Medium

Major Players

Hospitality in Saudi Arabia Market Major Players

*Disclaimer: Major Players sorted in no particular order
setting-icon

Need a report that reflects how COVID-19 has impacted this market and its growth?

Hospitality in Saudi Arabia Market Analysis

The Hospitality Industry In The Kingdom Of Saudi Arabia Market size is estimated at USD 13.23 billion in 2024, and is expected to reach USD 16.91 billion by 2029, growing at a CAGR of 5.03% during the forecast period (2024-2029).

The hospitality industry in Saudi Arabia expanded dramatically in the past few years due to several noteworthy government initiatives to develop the hotel industry and increase the nation's total tourism targets. Saudi Arabia is the travel destination with the fastest growth rate in the world, according to the G20. The UNWTO reports that foreign visitor visits in the Kingdom rose by 125% to pre-pandemic levels last year, attracting around 94 million tourists and outpacing the global tourism industry's rebound.

Saudi Arabia plans to invest over USD 550 billion in new travel destinations in the coming six years, making it the world's largest investor in tourism. It is due to its efforts to grow its tourist and hospitality sectors. Saudi Arabia led the Arab ranks for inbound tourism in the first three quarters of the previous year, with about 20 million tourists visiting the Kingdom. With the recent approval of the legislation, the industry hopes to contribute 10% of GDP in the coming six years and reach the goal of 100 million annual tourist visits. Travel restrictions are lifted, and the door is opened for a flood of tourists into the Kingdom. It is due to the new visa regulations like e-visas and visas-on-arrival for visitors from 49 countries, further fueling the growth of the hospitality industry.

The hospitality sector is set up for faster expansion, and the area is currently at the top of the travel and hospitality world. In Saudi Arabia, Rotana is developing seven hotels, including five brand-new establishments in Riyadh that are now under negotiation. Over the next four years, these buildings will nearly quadruple the number of rooms the company operates in the Kingdom to 6,000.

Hospitality in Saudi Arabia Industry Segmentation

Hospitality falls under the broad umbrella of the service industry, a tertiary sector of the economy. It includes food & beverages, stay, travel, theme parks, hotels, and event planning, amongst others. The Saudi Arabian hospitality industry is segmented by type and segment. By type, the market is segmented into chain hotels & independent hotels. By segment, the market is segmented into service apartments, budget and economy hotels, and mid-scale and upper-mid-scale luxury hotels. The report offers market size and forecasts for the Saudi Arabian Hospitality Market in value (USD) for all the above segments.

By Type
Chain Hotels
Independent Hotels
By Segment
Service Apartments
Budget and Economy Hotels
Mid and Upper-Mid Scale Hotels
Luxury Hotels

Hospitality Industry In The Kingdom Of Saudi Arabia Size Summary

The hospitality industry in Saudi Arabia has been experiencing dynamic growth over the past five years, driven by an increase in religious and leisure travel to the country. This has spurred investment opportunities, resulting in a rise in new hotel openings in key cities. Major projects such as Qiddiya, The Red Sea Development, Amaala, NEOM, Al Ula, and Wadi Al Disah Development have been launched by the Public Investment Fund of Saudi Arabia, aimed at fulfilling the target Vision 2030. The country's hospitality market has been further boosted by top-performing international brands opening new hotels, either directly or through strategic partnerships with leading domestic hospitality groups. In addition to the growth in religious and leisure travel, the introduction of a new visa regime in 2019 is expected to increase the number of international visitors to Saudi Arabia. This move, which allows e-visas and visas on arrival for visitors from 49 countries, is part of the Kingdom's goal to welcome 100 million visitors by 2030. Despite challenging market conditions, Saudi Arabia remains one of the most competitive markets for the hospitality industry globally. The high spending by international overnight visitors is attracting further investments. The hospitality industry in Saudi Arabia, a mix of international brands and domestic chain hotels, presents significant growth opportunities for new investors.

Explore More

Hospitality Industry In The Kingdom Of Saudi Arabia Market Size - Table of Contents

  1. 1. MARKET DYNAMICS

    1. 1.1 Market Drivers

      1. 1.1.1 Increase in the Number of Restaurants and Bars in the Industry

      2. 1.1.2 Increase in the Number of Tourist Attractions and Activities

    2. 1.2 Market Restraints

      1. 1.2.1 Inadequate Research and Development, Unpredictability of the Market

    3. 1.3 Market Opportunities

      1. 1.3.1 Increased Interest in Serviced Apartments and Mid-scale Brands

    4. 1.4 Porter's Five Forces Analysis

      1. 1.4.1 Bargaining Power of Suppliers

      2. 1.4.2 Bargaining Power of Buyers/Consumers

      3. 1.4.3 Threat of New Entrants

      4. 1.4.4 Threat of Substitute Products

      5. 1.4.5 Intensity of Competitive Rivalry

    5. 1.5 Impact of COVID-19 on the market

    6. 1.6 Insights on Revenue Flows from Accommodation and Food and Beverage Sectors

    7. 1.7 Insights into Leading Cities in Saudi Arabia with Respect to Number of Visitors

  2. 2. MARKET SEGMENTATION

    1. 2.1 By Type

      1. 2.1.1 Chain Hotels

      2. 2.1.2 Independent Hotels

    2. 2.2 By Segment

      1. 2.2.1 Service Apartments

      2. 2.2.2 Budget and Economy Hotels

      3. 2.2.3 Mid and Upper-Mid Scale Hotels

      4. 2.2.4 Luxury Hotels

Hospitality Industry In The Kingdom Of Saudi Arabia Market Size FAQs

The Hospitality Industry In The Kingdom Of Saudi Arabia Market size is expected to reach USD 13.23 billion in 2024 and grow at a CAGR of 5.03% to reach USD 16.91 billion by 2029.

In 2024, the Hospitality Industry In The Kingdom Of Saudi Arabia Market size is expected to reach USD 13.23 billion.

Hospitality Industry In The Kingdom Of Saudi Arabia Report Snapshots

Hospitality Industry in Saudi Arabia Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)