Saudi Arabia Expands Tourism with Mid-Range Hotels and Religious Tourism, Paving the Way for Sustainable Growth and Global Market Leadership

Published on December 8, 2025

Saudi Arabia is making significant strides in diversifying its tourism offerings, moving beyond high-end resorts to accommodate mid-range and upper-mid-range travelers. Part of the country’s wider Vision 2030 economic diversification strategy, it is offering a more inclusive market through new resorts at lower price levels, with a balanced mix of luxury and practicality. Expansion includes ten new resorts opening any moment now on Shebara Island; this sets up a more accessible option for travelers who seek comfort yet an affordable vacation experience.

This decision to expand hotel options is destined to make the country more attractive to a wider range of international visitors and more accessible to guests who have been deterred so far by high accommodation prices. With an expanded choice, Saudi Arabia hopes for more international tourism and increasing visitor numbers. This shift also reflects changes in the dynamics of global tourism, where experiential travel and authentic connections with nature are increasingly valued alongside luxury.

Religious Tourism as a Key Growth Driver

While luxury tourism continues to be a priority for Saudi Arabia, religious tourism remains central to the kingdom’s tourism strategy. Saudi Arabia plans to nearly double the number of pilgrims visiting Mecca and Medina by 2030, from the current levels to 30 million. This growth presents both a challenge and an opportunity for the country as it aims to provide sufficient accommodation and infrastructure to support the influx of pilgrims. The government is actively investing in the expansion of hotel capacity, ensuring that pilgrims have access to comfortable and affordable lodging during their visit to Islam’s holiest sites.

By reinforcing its position as a global pilgrimage destination, Saudi Arabia is strengthening its appeal to Muslim travelers while also supporting local businesses in hospitality, transport, and tourism services. In addition to Hajj and Umrah pilgrimages, the kingdom is also increasing its focus on cultural tourism, inviting tourists to explore historical sites, UNESCO World Heritage sites, and Saudi Arabia’s diverse landscapes.

Strategic Vision for Tourism Growth: Luxury Meets Sustainability

The development of mid-range hotels and affordable resorts in tandem with the growth of religious tourism demonstrates Saudi Arabia’s commitment to creating a more sustainable tourism model. As part of Vision 2030, the country is positioning itself as both a high-end travel destination and an accessible locale for the middle class. This diversification of tourism products helps Saudi Arabia cater to different visitor preferences while also supporting economic growth and job creation in the tourism and hospitality sectors.

The emphasis on sustainability, especially in the context of eco-tourism and cultural tourism, will likely have a long-lasting impact on the tourism sector, positioning the kingdom as a model for other countries in the Middle East and beyond. The development of green hotels, sustainable resorts, and regenerative tourism practices will align with global trends in eco-friendly travel, ensuring that tourism growth does not come at the expense of environmental preservation.

The Future of Saudi Arabia’s Tourism Sector: Opportunities and Challenges

Looking forward, Saudi Arabia’s tourism sector is set for continued growth and diversification, particularly as it expands its appeal to a broader spectrum of tourists. The introduction of mid-range hotels and affordable resorts will make the country more competitive in attracting global travelers who seek value for money while experiencing world-class destinations. Additionally, the country’s commitment to tourism sustainability and cultural preservation is likely to draw more visitors from eco-conscious and culturally minded markets.

The long-term impact of these tourism expansions includes increased tourist arrivals, higher visitor spending, and stronger growth in sectors such as food and beverage, local retail, and event management. With more tourism options and more accessible destinations, Saudi Arabia is poised to capture a larger share of the international tourism market, particularly as travel preferences shift toward more personalized and meaningful travel experiences.

The Role of Technology in Shaping Saudi Tourism’s Future

Technology will continue to play an important role in shaping the future of Saudi Arabia’s tourism sector, especially in areas such as digital services, travel planning tools, and smart tourism infrastructure. The integration of advanced technologies like AI, big data, and virtual tourism platforms will help enhance the visitor experience, streamline booking systems, and improve destination marketing.

By leveraging technological advancements, Saudi Arabia can improve tourist satisfaction and operational efficiency, ensuring that it remains a top destination for both luxury tourists and middle-class travelers.

Saudi Arabia’s Bright Future in Tourism

The expansion of mid-range hotels, along with the growth of religious tourism and the commitment to sustainable tourism, showcases Saudi Arabia’s strategic vision aimed at becoming a world leader in tourism by 2030. Saudi Arabia offers a variety of travel experiences, from luxury resorts to affordable, eco-friendly options, which opens new possibilities not just for tourists but also for the local economies.

Guided by Vision 2030, Saudi Arabia is transforming its tourism sector into a varied, sustainable, and dynamic industry-one that will play a leading role in the shaping of the future face of tourism around the world, while guaranteeing economic prosperity and environmental protection for decades to come.