Saudi Arabia’s tourism sector grows 5% in 2025

Saudi Arabia welcomed more than 122 million domestic and international tourists in 2025, a 5% year-on-year increase that keeps the kingdom firmly on course to achieve its ambitious target of 150 million visitors by the end of the decade.

Tourism spending also climbed 6% to reach SAR300 billion (US$80 billion), according to the latest figures from the Ministry of Tourism. The ministry noted that the sustained growth highlights the sector’s growing contribution to economic diversification and progress toward the national goal of contributing 10% to GDP.

Underpinned by regulatory reforms, large-scale investments and a rapidly expanding portfolio of destinations, Saudi Arabia is increasingly recognised as a global hub for luxury travel, culture and authentic experiences, supported by more than US$400 billion committed to tourism and related infrastructure to date.

The impact of this is visible on the ground, with the General Authority for Statistics (GASTAT) recently reporting a 40.6% year-on-year increase in licensed hospitality accommodations to 5,622 in Q3 2025 – 47.4% of which are hotels – alongside 6.4% growth in the tourism workforce.

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Speaking at the World Economic Forum in Davos this week, Minister of Tourism Ahmed Al-Khateeb said the kingdom’s progress means it is “no longer an emerging story” but one that is actively “shaping global demand”.

Backed by the Public Investment Fund (PIF), destinations including AlUla, Diriyah and The Red Sea are at the forefront of this transformation, developing a cohesive leisure tourism ecosystem that blends heritage, nature and high-end hospitality.