Saudi Arabia Achieves Record-Breaking Surge in Domestic Tourism Spending with SR105 Billion in 2025 and Unstoppable Growth in Private Accommodation Sector

Published on December 8, 2025

Saudi Arabia has experienced a remarkable surge in its tourism sector, with domestic spending reaching a record SR105 billion in 2025, marking a significant 18% increase from the previous year. This unprecedented growth is fueled by the kingdom’s strategic push to diversify its economy through tourism, alongside a booming demand for personalized travel experiences. The expansion of private accommodation options, which has seen a staggering 1,250% rise in licenses for rural lodges and private homes, highlights the sector’s appeal to both local and international tourists. As Saudi Arabia continues to invest in its tourism infrastructure, the country is solidifying its position as a leading global destination while ensuring long-term sustainability and investor confidence.

Saudi Arabia’s Tourism Sector Sees Unprecedented Growth as Domestic Spending Surges to SR105 Billion in 2025

Saudi Arabia’s tourism industry is undergoing a remarkable transformation, marked by a significant surge in domestic tourism spending, which reached SR105 billion ($28 billion) by the end of the third quarter in 2025. This represents an impressive 18% increase compared to the previous year, reflecting the country’s growing appeal as a premier travel destination. This upward trend underscores the critical role the tourism sector plays in the kingdom’s ongoing efforts to diversify its economy and reduce its reliance on oil revenues.

At a recent panel discussion during the Budget Forum 2026, the Deputy Minister of Tourism highlighted the sector’s dynamic growth, emphasizing that Saudi Arabia’s tourism industry is not only thriving but also evolving rapidly. The forum showcased the steady increase in international tourism, which has bolstered the kingdom’s global stature. European visitors have risen by 14%, while travelers from East Asia and the Pacific have increased by 15%, demonstrating a growing interest from diverse international markets.

Despite these impressive international gains, domestic tourism remains a pillar of Saudi Arabia’s long-term strategy for sustainable growth. As local travelers increasingly seek unique and personalized experiences within their own borders, the kingdom is positioning itself as a destination of choice for both residents and international visitors. The importance of domestic tourism in maintaining stability and sustainability in the sector cannot be overstated, and it continues to be central to the kingdom’s broader economic vision.

A key driver of this growth has been the explosive rise in private accommodation options across the country. Over the past year, the number of licenses issued for rural lodges and private hospitality homes has skyrocketed by an astounding 1,250%. This significant increase reflects a growing demand for more intimate, personalized travel experiences that allow visitors to explore Saudi Arabia’s rich heritage and stunning natural landscapes in unique and comfortable settings. The surge in private accommodation also signals robust investor confidence in the sector, with more than 31,000 licenses issued for such establishments in 2025 alone.

This dramatic expansion of the private accommodation market is not only a response to growing demand but also a reflection of the ongoing efforts to create a diversified, competitive tourism landscape in Saudi Arabia. By encouraging the growth of small and medium-sized hospitality businesses, the kingdom is able to provide visitors with a broader range of accommodation choices that cater to diverse tastes and preferences. Furthermore, the growth of private lodgings contributes to the creation of jobs and supports the broader local economy, making it a win-win for both travelers and the communities that welcome them.

The total number of visitors to Saudi Arabia has now surpassed 100 million, further cementing the country’s position as a global tourism hub. In 2024 alone, the kingdom welcomed nearly 30 million inbound tourists, marking an 8% year-on-year increase. This surge in international visitors contributed to an overall tourism expenditure that reached SR275 billion. The spending of inbound tourists topped SR168.5 billion, reflecting a 19% rise from the previous year. These impressive figures not only highlight the growing appeal of Saudi Arabia as a travel destination but also demonstrate the immense economic potential of the tourism sector as it continues to evolve.

Saudi Arabia’s rapid growth in the tourism sector is also underscored by the increased involvement of the private sector. In recent months, over 5,700 new tourism licenses have been issued, marking a 40% growth compared to the previous year. This expansion indicates the high level of interest and confidence in the tourism sector from investors and entrepreneurs. The kingdom’s focus on improving infrastructure, diversifying tourism offerings, and creating a competitive environment has proven successful in attracting a range of tourism businesses, from small-scale rural lodges to large-scale hotels and resorts.

As Saudi Arabia continues to prioritize the development of its tourism sector, these milestones align with the nation’s Vision 2030 goals. This ambitious plan aims to position Saudi Arabia as a global leader in tourism and establish it as a key player in the worldwide travel and hospitality industry. Through the creation of new tourism attractions, development of world-class infrastructure, and a commitment to sustainability, the kingdom is laying the groundwork for a thriving tourism economy that will generate significant economic returns and create long-term opportunities for its citizens.

The progress made by Saudi Arabia in its tourism sector is a testament to the country’s commitment to economic diversification and the successful implementation of strategic initiatives. The impressive growth in both domestic and international tourism spending, the explosion of private accommodation licenses, and the rise in new tourism-related businesses all point to a bright future for the kingdom’s tourism industry. As Saudi Arabia continues to invest in and develop its tourism infrastructure, it is poised to become a leading destination for travelers from around the world, offering a rich blend of cultural experiences, natural beauty, and modern amenities.

Saudi Arabia’s tourism sector has seen a record SR105 billion in domestic spending in 2025, driven by a 1,250% increase in private accommodation licenses, highlighting the kingdom’s rapid growth as a global tourism hub. This surge reflects the nation’s commitment to diversifying its economy and fostering long-term growth in tourism.

With these achievements, Saudi Arabia is well on its way to meeting the ambitious goals outlined in Vision 2030, positioning itself as a key player in the global tourism market. The kingdom’s tourism sector will remain a driving force in its economic diversification strategy, contributing to its continued growth and global competitiveness in the years to come.