Published on October 19, 2025

In the first half of 2025, Saudi Arabia’s Madinah recorded 74.7% hospitality occupancy, the highest in the kingdom. This trajectory of growth continues to cement the city as a centre for major investment projects in the region’s religious tourism infrastructure. A report from the Ministry of Tourism confirms that Madinah continues to perform well in accommodating a growing number of visitors, as evidenced by the expansion of the city’s licensed hospitality venues.
Madinah’s hospitality occupancy rate topped at 74.7% in the first half of 2025, the highest in the Saudi Kingdom. This influx of investments in hospitality venues is a welcome sign for a city known as the second holiest in Islam. Demand for the city has skyrocketed, especially during the Hajj and Umrah pilgrimages, attracting tourists from across the globe.
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Increased occupancy rates, along with the rest of the country’s tourism, contribute to Vision 2030, the strategic plan for the Kingdom of Saudi Arabia to strengthen the tourism and hospitality sectors within the country. This growth in hospitality occupancy in Madinah is a success story under the objectives of the Saudi Vision 2030.
Increased Capacity of Authorised Hospitality Services Offered in Madinah
The tremendous enhancement in the occupancy rates in the city of Madinah permits the sustenance of a great increase within the authorised hospitality services the city offers. With the increase of demand in Madinah, the index of authorised hospitality services increased to 538, a great increase from the the last public records plus the increase of 69 licenses that have previously been authorised. This new data comes from the Ministry of Tourism indicating, that rapid growth within the sector is expected for the coming decade.
In Madinah, the total amount of hotel rooms increased to 64,569 with an addition of 6,628 rooms. This increase is important to upholding the city’s global reputation as a religious tourism destination. The increase of hotel rooms assists Madinah in better serving the constant inflow of religious tourists. The number of available rooms is important in meeting the goals of high occupancy rates and the demands of the travellers to the country.
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Impact of Large-Scale Development Projects.
Multiple large scale development projects aimed at enhancing the city’s infrastructure and tourism services have also contributed to the increase in occupancy rates, and the growth of hospitality facilities in Madinah. These projects are part of the overarching Saudi Vision 2030, aimed at improving the tourism sector and services in the Kingdom.
In Madinah, such development projects comprise the construction of additional hotels and their renovation, and the improvement of transportation and urban access. The development of the city’s infrastructure both accomodates the growing influx of religious pilgrims and facilitates Madinah’s growing role as a business destination, as well as a place to relax and for general tourism within the Kingdom of Saudi Arabia.
The city of Madinah itself has also focused on improving the level of service of the hospitality sector to ensure that tourists have convenient and comfortable stays. The focus on service quality is critical for an enhanced brand perception of Madinah, as well as for the retention of visitors.
Madinah’s Role in Religious Tourism
Madinah is famous for being a religious tourist destination, particularly for those who embark on the Hajj or the Umrah pilgrimage. Beyond the folds of Islamic belief and practice, Madinah is where the Prophet Muhammad is laid to rest and thus holds great cultural value. As such, millions of pilgrims travel to Madinah every year and is among the most visited religious cities in the world.
The growth of hotels and similar businesses in the county of Madinah certainly indicates the increased importance of domestic and international tourists when people consider the traditional pilgrimages of Saudi Arabia. It would also serve as an agreeable assumption to consider the city of Madinah as
one of the resting points for the traditional pilgrimages that are characteristic of the country. Saudi Arabia certainly experience an influx of people at the time of Hajj with the pilgrimages making Madinah an important center in bringing travelers to the country. Prime factor sustaining the boost in the hospitality industry is the amount of tourists that are coming to the city each and every year.
In the context of the entire country, if we were to study the growth of kazan, Madinah would also position her self as another city that can facilitate the entire set of visitors with ease as the infrastructural growth of the city is adequate. It is also a direct indication of the efforts that has been undertaken throughout the account to provide unmatched people as a indicative to the Saudi Arabia Vision 2030.
The hospitality and tourism industry of the country is presumed to get a boost with the infrastructural growth observed in the country. The city has been receiving an accurate amount of visitors from various places. However, to maintain the growth in the tourism industry, the proper amount of facilities should also be extended to gain the ideal number of visitors.
The activities which the Ministry of Tourism continues to undertake in the hospitality sector will assist in consolidating the position of Madinah as a premier religious plus a travel attraction in Saudi Arabia. In addition to this, the increase in hospitality occupancy rates plus the growth of licensed hospitality facilities portray the success of these activities, which puts Madinah at the core of the Saudi Arabia tourism industry.
Conclusion
The increasing popularity of Madinah as a religion and leisure tourism attraction is shown by the hospitality occupancy rate of 74.7% in the first half of the 2025. This is compounded by the expansion of hospitality facilities and the commencement of hospitality development projects which position Madinah to continue attracting tourists from every corner of the world. Madinah is set to continue increasing her contribution to the Saudi Arabia tourism industry in line with Saudi Vision 2030 by enhancing her tourism offerings, which will provide tourists with unforgettable experiences.
Madinah has strengthened her position as a key destination and has integrated her offerings into the international tourism industry. This has been possible by expanding her tourism and hospitality facilities.
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