The tourism sector in Saudi Arabia is witnessing a state of continuous growth in recent years, supported by the development of infrastructure, the expansion of hotel facilities and the rise in tourism demand, which was reflected in occupancy rates, prices and employment opportunities during the fourth quarter of 2025, according to data from the General Authority for Statistics.
.The tourism sector in the Kingdom of Saudi Arabia is witnessing a state of continuous growth in recent years, supported by the development of infrastructure, the expansion of hotel facilities and the rise in tourism demand.
Hotel occupancy rises, serviced apartments stabilize
Hotels in the Kingdom recorded an increase in the occupancy rate to reach about 57.3% during the fourth quarter of 2025, compared to 56% in the same period of 2024, reflecting improved demand for hotel accommodation.In contrast, the occupancy rate of serviced apartments and other hospitality facilities stabilized at 55.9%, little changed from a year earlier, indicating a balanced situation in the sector.
The occupancy rate of serviced apartments and other hospitality facilities stabilized at 55.9%.
Occupancy Trends in Recent Years Occupancy Trends in Recent Years Occupancy Trends in Recent Years
Occupancy rates fluctuated significantly from 2023 to 2025, with hotel occupancy rates ranging from 46% to 63%, while serviced apartments stabilized in a range roughly between 50% and 58%, with some periods recording strong performance such as the first quarter of 2025 when hotel occupancy reached 63%.
Occupancy disparity between regions of the Kingdom
The data showed clear differences between regions:
Medina topped the list of highest hotel occupancy rates with 81.5%, followed by Riyadh with 67.6% and the Eastern Province with 60.6%. In serviced apartments, Riyadh ranked first with 70.5%, followed by Najran with 60% and the Eastern Province with 57.8%.
In contrast, Al Baha recorded the lowest occupancy rates, reaching 26.5% in hotels and 29.6% in serviced apartments.
On the other hand, Al Baha recorded the lowest occupancy rates, reaching 26.5% in hotels and 29.6% in serviced apartments.
Average Daily Accommodation Rates Decline
The average room rate in hotels reached about 389 riyals during the fourth quarter of 2025, down about 12% compared to the previous year, while serviced apartments recorded about 207 riyals, down about 6%.
This decline reflects a state of balance between supply and demand with increasing capacity of the sector.
Baha recorded the lowest occupancy rates, reaching 26.5% in hotels and 29.6% in serviced apartments.
Prices varied between regions
Prices varied greatly between the Kingdom's regions:
Riyadh recorded the highest average price for hotels at 845 riyals, while Tabuk was the top serviced apartment at 150 riyals.
Najran and Northern Borders were among the lowest in terms of prices, reflecting different levels of tourism demand from one region to another.
The prices varied between regions.
Duration of stay. Relative stability in visitor behavior
Strong growth in employment in the tourism sector The number of workers in tourism activities rose to about 1.03 million workers during the fourth quarter of 2025, an increase of nearly 7% from the previous year.
Distribution of tourism jobs among regions Riyadh topped the list of regions in terms of the number of workers in the tourism sector with about 340 thousand workers, representing 33% of total workers.
The average length of stay of guests in hotels reached 3.8 nights during the fourth quarter of 2025, compared to 2.2 nights in serviced apartments.
The figures show that Makkah recorded the longest hotel stay with an average of 4.4 nights, while Riyadh recorded 2.6 nights, while most other regions came between 1.7 and 2.3 nights.
The number of workers in tourism activities rose to about 1.03 million during the fourth quarter of 2025, an increase of nearly 7% compared to the previous year.
The number of Saudis reached about 247.5 thousand workers (24%), while non-Saudis reached 783.1 thousand workers (76%), reflecting the sector's heavy reliance on expatriate labor.
Riyadh topped the list of regions in terms of the number of workers in the tourism sector with about 340 thousand workers, representing 33% of the total workers.
Mecca followed with about 284 thousand workers, then the Eastern Province with 152 thousand workers, while the remaining regions came with lower percentages ranging from 0.7% to 6%.
