Real estate reports have noted that the Kingdom’s tourism sector set a record in 2022, following the opening of 12,000 hotel rooms—the highest rate globally in the hotel and hospitality industry. According to a report released by Knight Frank, strong growth rates are expected to continue through 2030, with the number of hotel rooms expected to rise from about 128,000 currently to about 403,000 by 2030, representing an increase of approximately 215%.
According to the report, the total number of new rooms by 2030 will be distributed as follows: 37% for 5-star hotels, 36% for 4-star hotels, 17% for 3-star and lower-rated hotels, and 10% for hotel apartments. The total cost of constructing these hotel rooms is $21.2 billion, excluding costs related to “giga projects” such as the Red Sea, Al-Qiddiya, and Neom, which alone will account for 225,000 hotel rooms by 2030.
This increase in Saudi hotel capacity aligns with expectations of attracting 100 million visitors by 2030, amid a gradual improvement in figures since the COVID-19 pandemic.
The development of tourist destinations and the increase in entertainment events, such as Riyadh Season and Saudi Winter, and the Saudi Tourism Authority’s efforts to promote them intensively both domestically and internationally, serving as an incentive to increase hotel capacity as occupancy rates improve.
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Tourism over 6 months
27 billion riyals: Tourism spending
46 million: Visitors to the Kingdom
4,380 riyals: Average visitor spending
