Saudi Arabia’s Tourism Boom: Domestic Spending Soars 18%, With International Visitors Surging from Europe and Asia!

Published on December 8, 2025

Saudi Arabia’s domestic tourism sector has experienced a remarkable boost in 2025, with spending reaching SR105 billion ($28 billion) by the end of the third quarter. This marks an impressive 18% year-on-year growth, as announced by Princess Haifa bint Mohammed, the Deputy Minister of Tourism. The increase in spending highlights the sector’s pivotal role in the country’s economic diversification efforts, signaling the continued development and appeal of Saudi Arabia as a prime tourism destination.

The Growing Significance of Domestic Tourism

Princess Haifa emphasized that domestic tourism remains a key driver for long-term growth in the sector. Despite the growth in international visitors, domestic tourists continue to be central to sustaining the success of the tourism industry. Saudi Arabia’s internal tourism market is thriving, with many citizens and residents opting for local experiences. This trend is a positive sign for the broader tourism strategy, which seeks to balance domestic demand alongside international visitation.

Moreover, the tourism sector has proven to be one of the most promising engines of economic diversification, aligning with the government’s objectives to reduce the country’s reliance on oil revenues. The growth of the tourism sector directly supports the Vision 2030 initiative, which aims to position Saudi Arabia as a global tourism hub.

Steady Growth in International Tourism

While domestic tourism has played a vital role, international tourism to Saudi Arabia has also seen steady progress. In 2025, international tourism showed notable growth, with European visitors increasing by 14% and travelers from East Asia and the Pacific growing by 15%. The rise in these international visitors highlights Saudi Arabia’s growing appeal among global travelers.

The kingdom’s tourism authorities have been proactive in marketing the country as a top-tier destination for various types of tourism. With its rich cultural heritage, luxurious resorts, and modern cities, Saudi Arabia is increasingly becoming a sought-after destination for both leisure and business travel.

Private Accommodation Sector Booms

One of the most impressive developments in Saudi Arabia’s tourism landscape is the rapid expansion of private accommodation facilities. There has been a 1,250% increase in private lodging options compared to the previous year. This surge in rural lodges and private hospitality homes reflects the growing demand for personalized and unique travel experiences, as well as investor interest in tapping into the evolving tourism market.

More than 31,000 licenses have been issued for private accommodations, such as guest houses and bed-and-breakfasts, underscoring the expanding diversity of accommodation options available to travelers. This growth allows tourists to enjoy a wider range of accommodations, from luxurious hotels to more intimate, local stays that offer a taste of Saudi Arabia’s culture and hospitality.

Historic Inbound Tourism Milestone

Saudi Arabia has also reached a historic milestone in inbound tourism, recording nearly 30 million international visitors in 2024. This represents an 8% increase compared to the previous year. The total spending by inbound tourists stood at SR168.5 billion, reflecting a 19% increase from 2023. This robust growth highlights the success of the country’s tourism initiatives and reflects the increasing international interest in visiting Saudi Arabia.

The significant growth in visitor numbers has been attributed to several factors, including enhanced travel infrastructure, improved visa policies, and the growing popularity of Saudi Arabia’s cultural and leisure offerings. The government’s focus on creating more accessible and engaging travel experiences is proving effective in attracting tourists from all corners of the globe.

Licensing and Investment Growth

A key component of Saudi Arabia’s tourism strategy has been to empower the private sector to drive growth in the industry. Over 5,700 tourism licenses have been issued in the past year, marking a 40% growth in the sector. This indicates a strong investor interest, as more businesses are eager to capitalize on the growing tourism market.

To further support investment attraction, Saudi Arabia’s Ministry of Tourism has launched a unified data platform that provides real-time insights into market performance, visitor trends, and spending patterns. This digital platform makes it easier for investors to track performance and make informed decisions based on transparent data, ultimately helping to create a more efficient and dynamic tourism market.

Additionally, digital service platforms now allow investors to complete necessary procedures more quickly and efficiently, improving the ease of doing business in the tourism sector. These innovations in digital services are part of the kingdom’s broader efforts to streamline bureaucratic processes and encourage foreign investment.

Vision for the Future of Saudi Tourism

Princess Haifa noted that these achievements do not signify the end of Saudi Arabia’s ambitions for its tourism sector. The Ministry of Tourism continues to pursue new targets every year, with a focus on expanding tourism infrastructure, improving service quality, and increasing the variety of experiences available to visitors. The continued growth of both domestic and international tourism will remain central to the kingdom’s long-term economic diversification strategy.

The government’s support for sustainable tourism and the growing role of technology in enhancing the visitor experience are expected to further propel Saudi Arabia’s tourism sector in the coming years. With more international tourists discovering the country’s rich history, world-class resorts, and dynamic cities, Saudi Arabia is well on its way to becoming one of the world’s leading tourism destinations.

Conclusion: A Bright Future for Saudi Tourism

In conclusion, Saudi Arabia’s tourism sector is on a strong upward trajectory, driven by both domestic and international demand. The country’s remarkable growth in tourism spending and the expansion of private accommodation facilities reflect the kingdom’s growing appeal as a travel destination. The increase in international visitors, especially from Europe and East Asia, underscores Saudi Arabia’s success in attracting global travelers.

With a robust tourism infrastructure, a thriving private sector, and a strategic vision to diversify its economy, Saudi Arabia is well-positioned to maintain this growth and continue its efforts to become a leading player in the global tourism market. The future of Saudi tourism looks bright, with continued growth and innovation expected to make the country even more appealing to travelers worldwide.