Recent data has revealed significant changes in the performance of the hospitality and tourism sector in Saudi Arabia during the second quarter of 2026, with a decline in hotel and serviced apartment occupancy rates, coinciding with a decrease in average daily prices, while the number of workers and tourist establishments continued to grow, reflecting the expansion of the tourism activity base in the Kingdom.
According to the Tourism Establishments Statistics Bulletin issued by the General Authority for Statistics , the hotel room occupancy rate decreased to 51% during the second quarter of 2026, compared to 53.2% during the same quarter of 2025, while the occupancy of serviced apartments and other hospitality facilities decreased to 46.5% compared to 50.2% a year earlier.
Fluctuating trend for hotel and hospitality occupancy
Data shows that hotel occupancy rates have fluctuated significantly in recent years. In the first quarter of 2023, hotels recorded 63.21 TP3T, before dropping to 54.91 TP3T in the second quarter, then 53.41 TP3T in the third quarter, and rising again to 60.21 TP3T in the fourth quarter. During 2024, hotel occupancy rates reached 60.91 TP3T in the first quarter, then 55.41 TP3T in the second quarter, before declining to 46.11 TP3T in the third quarter, and rising once more to 561 TP3T in the fourth quarter.
In 2025, hotels recorded 631 TP3T in the first quarter, then declined to 53.21 TP3T in the second quarter and 49.11 TP3T in the third quarter, before rising to 57.31 TP3T in the fourth quarter. In the first quarter of 2026, the average was 60.81 TP3T, before falling to 511 TP3T in the second quarter. As for serviced apartments and other hospitality facilities, the average occupancy rate was 531 TP3T in the first quarter of 2023, then 50.91 TP3T in the second quarter, 56.21 TP3T in the third quarter, and 55.41 TP3T in the fourth quarter.
In 2024, the average was 54.5% in the first quarter, 52.4% in the second, 58% in the third, and 55.9% in the fourth. During 2025, it was 50.7% in the first quarter, 50.2% in the second, 57.4% in the third, and 55.9% in the fourth, before reaching 51.6% in the first quarter of 2026 and then declining to 46.5% in the second quarter.
Medina leads in hotel occupancy
At the regional level, Madinah topped the list of hotel occupancy rates during the second quarter of 2026 with 65.31 TP3T, followed by Makkah with 501 TP3T, then the Eastern Province with 47.81 TP3T. The Northern Borders region recorded a hotel occupancy rate of 46.81 TP3T, while the rate was 42.71 TP3T in both Qassim and Riyadh, then Najran with 39.91 TP3T, Asir with 381 TP3T, Jazan with 36.41 TP3T, Al-Baha with 34.31 TP3T, Al-Jawf with 33.71 TP3T, and Hail with 28.91 TP3T, while Tabuk recorded the lowest rate at 28.61 TP3T.
In the serviced apartments and other hospitality facilities sector, Najran led with an occupancy rate of 54.21 TP3T, followed by Riyadh at 52.71 TP3T, and then the Eastern Province at 47.61 TP3T. Al-Qassim recorded 46.71 TP3T, Asir 431 TP3T, Hail 42.91 TP3T, and Jazan 40.71 TP3T, while the rate reached 38.71 TP3T in both Madinah and Al-Jawf, and 38.11 TP3T in the Northern Borders region.
Makkah recorded 44.2%, Tabuk 35%, while Al-Baha came at the bottom of the list with an occupancy rate of 33.1%.
Lower average hotel room prices
The decline wasn't limited to occupancy rates; the average daily rate of a hotel room fell during the second quarter of 2026 to approximately 563 riyals, compared to 643 riyals in the same quarter of 2025, a decrease of about 12.41 TP3T. The average daily rate for hotels had been 515 riyals in the first quarter of 2023, then rose to 756 riyals in the second quarter, before falling to 443 riyals in the third quarter and 447 riyals in the fourth.
During 2024, the average price was 494 riyals in the first quarter, 669 riyals in the second, 354 riyals in the third, and 440 riyals in the fourth. In 2025, it was 477 riyals in the first quarter, 643 riyals in the second, 341 riyals in the third, and 389 riyals in the fourth, then it declined to 423 riyals in the first quarter of 2026 before rising to 563 riyals in the second quarter.
As for serviced apartments and other hospitality facilities, the average daily price was 197 riyals in the second quarter of 2026, compared to 201 riyals in the second quarter of 2025, a decrease of approximately 2.1%.
This average was recorded at 205 riyals in the first quarter of 2023, then 221 riyals in the second, 222 riyals in the third, and 218 riyals in the fourth. In 2024, it reached 195 riyals in the first quarter, 199 riyals in the second, 200 riyals in the third, and 220 riyals in the fourth. During 2025, it reached 209 riyals in the first quarter, 201 riyals in the second, 208 riyals in the third, and 207 riyals in the fourth, then 206 riyals in the first quarter of 2026.
Riyadh leads in serviced apartments
According to the regions, Tabuk recorded the highest average daily price for a hotel room during the second quarter of 2026 at 738 riyals, followed by Madinah at 589 riyals, then Makkah at 585 riyals, and Riyadh at 541 riyals.
The average price in the Eastern Province was 433 riyals, in Qassim 390 riyals, while Al-Baha and Hail recorded 331 riyals each, Asir 297 riyals, Jazan 290 riyals, Al-Jawf 246 riyals, the Northern Borders 207 riyals, and Najran 200 riyals.
In serviced apartments and other hospitality facilities, Riyadh topped the list with a daily average of 230 riyals, followed by Medina at 221 riyals, then Jazan at 214 riyals. Makkah and the Eastern Province each recorded 196 riyals, Qassim 154 riyals, Tabuk 151 riyals, Al-Baha 147 riyals, Asir 141 riyals, Hail 176 riyals, Al-Jawf 132 riyals, and the Northern Borders region 133 riyals, while the average in Najran was 96 riyals.
Longer hotel stays
The average length of stay for guests in hotels rose to 5 nights during the second quarter of 2026, compared to 4.8 nights in the second quarter of 2025, while the average length of stay in serviced apartments and other hospitality facilities fell to 2 nights, compared to 2 nights in the same quarter of the previous year.
The average hotel stay was 3.7 nights in the first quarter of 2023, 4.4 nights in the second, 3.7 nights in the third, and 3.6 nights in the fourth. In 2024, it reached 4.1 nights in the first quarter, 5.2 nights in the second, 4.2 nights in the third, and 3.6 nights in the fourth.
During 2025, it recorded 4.1 nights in the first quarter, 4.8 nights in the second, 4.1 nights in the third, and 3.8 nights in the fourth, before reaching 4.2 nights in the first quarter of 2026 and then rising to 5 nights in the second quarter.
The average length of stay in serviced apartments and hospitality facilities was 2.5 nights in the first quarter of 2023, 2.4 nights in the second, 2.5 nights in the third, and 2.4 nights in the fourth. In 2024, it was 2.2 nights in the first quarter and 2.1 nights in the following three quarters. In 2025, it was 2.1 nights in the first quarter, 2 nights in the second, 2.1 nights in the third, and 2.2 nights in the fourth. In the first quarter of 2026, it was 2.2 nights before dropping back to 2 nights in the second quarter.
Mecca records longest hotel stay
Regionally, Makkah led in average hotel stay length during the second quarter of 2026 with 7.3 nights, followed by Madinah with 4.3 nights, and Tabuk with 2.5 nights. The Northern Borders region recorded 2.3 nights, Riyadh and the Eastern Province 2.1 nights each, Al-Baha 1.9 nights, Asir and Al-Jawf 1.8 nights each, while Jazan and Qassim recorded 1.7 nights, and Hail and Najran 1.6 nights each.
As for serviced apartments, Madinah recorded the highest average stay at 2.6 nights, followed by Najran at 2.2 nights, then Riyadh at 2.1 nights. The average was two nights in the Eastern Province, 1.9 nights in Makkah, Tabuk, and the Northern Borders, 1.8 nights in Al-Baha, Asir, and Al-Jawf, and 1.7 nights in Jazan, Al-Qassim, and Hail.
Growth in the number of workers in tourism activities
In contrast, the tourism labor market continued to grow during the same period, as the number of people employed in tourism activities in the Kingdom increased by 7.2% to about 1.07 million workers in the second quarter of 2026, compared to 997.36 thousand workers in the second quarter of 2025. The number of Saudis working in tourism activities reached about 258.04 thousand workers, representing 24.1% of the total workforce, while the number of non-Saudis reached 811.08 thousand workers, representing 75.9%.
The total number of employees was 900,530 in the first quarter of 2023, comprising 239,740 Saudis and 660,790 non-Saudis. This number rose to 912,200 in the second quarter, 919,170 in the third, and 929,400 in the fourth. In 2024, the total reached 944,300 in the first quarter, 959,180 in the second, 948,630 in the third, and 966,530 in the fourth. In 2025, it increased to 983,250 in the first quarter, 997,360 in the second, then exceeded one million in the third quarter at 1,009,690, and reached 1,030,570 in the fourth quarter.
In the first quarter of 2026, the number rose to 1,047,310 employed people, before reaching 1,069,120 in the second quarter.
Riyadh accounts for a third of the workforce
Riyadh led the regions in terms of the number of employees in tourism activities, with approximately 353,920 workers, representing 33.11 TP3T of the total. Makkah followed with approximately 298,930 workers (281 TP3T). The Eastern Province came in third with 158,920 workers (14.91 TP3T), followed by Madinah with 63,720 (61 TP3T), and Asir with 50,170 (4.71 TP3T).
Al-Qassim recorded 35,190 employed individuals, representing 3.31 TP3T of the total, followed by Jazan with 29,360 (2.71 TP3T), and Tabuk with 28,740 (2.71 TP3T). The number of employed individuals in Hail reached 13,930 (1.31 TP3T), Najran 12,810 (1.21 TP3T), Al-Jawf 8,610 (0.81 TP3T), the Northern Borders region 7,600 (0.71 TP3T), and Al-Baha 7,240 (0.71 TP3T).
Increase in the number of tourist establishments
The growth extended to the tourism establishments base, whose number increased by 8.7% to about 179.5 thousand establishments during the second quarter of 2026, compared to the same period of 2025. Food and beverage establishments accounted for the largest share, with a total of 115.70 thousand establishments, representing 64.5% of the total tourism establishments, followed by visitor accommodation establishments with about 25.92 thousand establishments, representing 14.4%.
The number of retail establishments for goods specific to the country’s tourism reached about 17,400 establishments, representing 9.7% of the total, while the number of sports and entertainment activity establishments reached 5,370 establishments, representing 3%.
The land passenger transport sector recorded 4,480 establishments, representing 2.5%, while travel agencies and booking services numbered 3,740 establishments (2.1%). Other specialized tourism service establishments totaled 3,500 (1.9%). Additionally, transportation rental establishments numbered 1,660 (0.9%), water passenger transport 0,670 (0.4%), and rail passenger transport 0,440 (0.2%).
Cultural activities recorded 0.39 thousand establishments at a rate of 0.2%, and air passenger transport recorded 0.25 thousand establishments at a rate of 0.1%, bringing the total number of tourist establishments to about 179.5 thousand establishments.
