Saudi Arabia’s hospitality sector is booming, reported global property experts, Knight Frank. Recording double-digit growth, the kingdom is proving that the world is officially falling in love with Saudi as a top travel destination.
Numbers don’t lie
Across Saudi, the average daily room rate (ADR) has jumped by an impressive 10.8%, and revenue per available room (RevPAR) soared by 12.3% in the past year leading up to March. This isn’t just a fluke; it’s fuelled by skyrocketing demand, especially in the sacred cities and the vibrant capital of Riyadh.
And speaking of skyrocketing numbers, Saudi welcomed a mind-blowing 30 million international visitors in 2024! This highlights just how much global interest has surged in recent years. The best part? The Kingdom isn’t stopping there, with an ambitious target of 70 million international tourists by 2030. That’s a massive opportunity for everyone in the travel industry.
Makkah and Madinah: sacred journeys, soaring bookings
Makkah continues to be a powerhouse for religious tourism, and it’s only getting better with infrastructure upgrades and increased hotel capacity. In the first quarter of 2025, Makkah’s ADR shot up by 28.9% year-on-year to SAR 859, and RevPAR climbed by 35.7% to SAR 673! This surge is directly linked to an 8.3% rise in Umrah visas. The way we see it, more pilgrims mean more booking opportunities.
With more than 8,500 new rooms in the pipeline across 12 hotel developments, Makkah’s total inventory is set to expand from 63,428 to 71,643 rooms by 2027. Plus, game-changing masterplans like Masar Destination and Rua Al Haram are making Makkah even more accessible, ensuring a smooth and spiritual experience for a greater number of visitors.
Not to be outdone, Madinah is also shining bright. In Q1, its ADR reached SAR 891 (the highest in the Kingdom), an 11.8% year-on-year increase, with RevPAR climbing by 15.1% to SAR 724. Madinah currently boasts 20,673 hotel rooms, with an additional 2,100 keys expected by 2027. Major international players like Hilton and Marriott are also expanding their presence, adding 6,000+ rooms combined.
And to top it off, the new Rua Al Madinah giga-project is set to transform the city’s hospitality scene with over 47,000 planned hotel rooms. As Amar Hussain, Associate Partner – Research, Middle East at Knight Frank, puts it, these figures really highlight Madinah’s pricing strength and resilient demand. He expects pilgrim arrivals in Madinah to reach an incredible 30 million by 2030, solidifying its role as a global hub for religious tourism.
Travel agent’s roadmap to Saudi success
For travel agents and advisors preparing to assist clients plan and experience the magic of Saudi Arabia, we have a few pointers to help you along the way:
- Highlight spiritual journeys: With the massive growth in Umrah visas and pilgrim numbers, create a few tailored packages focusing on spiritual tours to Makkah and Madinah. Emphasise the enhanced infrastructure and new hotel options who doesn’t like new and shiny offerings?
- Promote beyond the Holy cities: While religious tourism is huge, Saudi Arabia offers so much more. Inspire and educate your clients on the different emerging leisure destinations, cultural experiences, and adventure tourism opportunities as they develop.
- Showcase new developments: Keep an eye on the new hotel openings and giga-projects like Masar Destination, Rua Al Haram, and Rua Al Madinah. Being knowledgeable about these exciting developments will help you offer cutting-edge options and position you as an epxert of Saudi travel.
- Offer customised itineraries: Leverage the diverse appeal of Saudi by customising offeringsto that cater to different interests, be it spiritual, cultural, foodie centric, advanture, or a combo.
- Emphasise accessibility and convenience: With infrastructure upgrades and improved access, ensure your clients are well aare of how easy and comfortable travel within Saudi Arabia is becoming. This can help alleviate any concerns they might have.
No doubt, the future of travel to Saudi Arabia is incredibly bright. To assist agents with ther toolkit, here are some other useful resources:
