Saudi tourism spending hits US$22bn in Q1 2026

Saudi Arabia’s tourism sector generated SAR82.7 billion (US$22 billion) in spending during the first quarter of 2026, as arrivals rose 8% year-on-year to 37.2 million, according to hospitality and real estate consultancy Cavendish Maxwell. 

 

Domestic tourism led the growth, accounting for 78% of all visitors between January and March, with trips increasing 16% to nearly 29 million. Inbound arrivals, however, fell 13% year on year to 8.3 million.

 

Despite representing just over a fifth of all visitors, international travellers generated almost 60% of tourism spending, contributing SAR48 billion (US$12.8 billion), compared with SAR34.7 billion (US$9.3 billion) from domestic tourism. Although overseas arrivals declined, visitor spending fell by only 7%, indicating higher average spend per traveller.

 

Hotel performance remained stable, with national occupancy reaching almost 75% in January before easing to 63% year to date by May. Average daily rate (ADR) climbed to SAR825, up 12% on the same period last year, while Makkah and Madinah continued to outperform other destinations.

 

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Kevin Duffield, Director of Built Asset Consulting at Cavendish Maxwell, said: “Like elsewhere in the region, KSA’s hospitality and tourism sectors have been affected by geopolitical tensions, but reductions in inbound tourism have been largely offset by an increase in domestic travel.”

 

Saudi has more than 176,000 hotel rooms and is expected to add a further 105,500 keys across 382 hotels by 2030, with around 18,150 rooms due to open this year. The kingdom is targeting 150 million annual domestic and international visitors by 2030, supported by major events including Riyadh Expo 2030 and the FIFA World Cup 2034.

 

The growth builds on Saudi’s record tourism performance in 2025. The Ministry of Tourism (MoT) reported 123 million visitors and SAR304 billion (US$81.1 billion) in tourism spending last year. Separately, the World Travel & Tourism Council (WTTC) said the sector contributed US$178 billion to the kingdom’s GDP in 2025, up 7.4% year-on-year.

For more information, visit www.cavendishmaxwell.com