Saudi Arabia’s tourism industry is experiencing significant growth, particularly within the hotel sector, driven by government initiatives and major infrastructure investments aimed at increasing visitor numbers.
Since the introduction of the National Tourism Strategy in 2016, the country has seen a sharp rise in Revenue Per Available Room (RevPAR), placing it among the top five performers in the Middle East and Africa. This growth reflects the impact of strategic reforms and targeted investments across major cities such as Riyadh, Jeddah, Makkah, Madinah, and the Dammam Metropolitan Area, which have enhanced tourism’s contribution to the national economy.
According to data from the Ministry of Tourism, international tourist arrivals have outpaced domestic travel since the launch of the tourist visa in 2019. This trend underscores the effectiveness of policies designed to diversify Saudi Arabia’s economy beyond oil.
Key infrastructure projects—including the expansion of King Salman International Airport and King Abdulaziz International Airport, as well as the development of the Riyadh Metro and the Haramain High-Speed Railway—have significantly improved both domestic and international connectivity. These upgrades are expected to make travel more accessible and support Saudi Arabia’s goal of becoming a major tourism hub in the region.
While the majority of hotel development remains concentrated in tier-one cities, tier-two cities are gaining traction, now accounting for 23% of total visitor numbers. To encourage further growth in these emerging markets, the Saudi government has introduced funding initiatives such as the Tourism Development Fund, aimed at attracting private sector investment.
Industry analysts believe these incentives could substantially boost returns in the tourism sector and draw increased international interest in the years ahead.
With continued development aligned with the Vision 2030 plan, Saudi Arabia is positioning itself as a premier destination for both tourists and investors.
This article was originally published by Hotel Management Network, a brand owned by GlobalData.
Source: finance.yahoo.com