Knight Frank has revealed forecasts of significant growth in the hospitality sector with plans to develop 362,000 new hotel rooms by 2030 to keep pace with the expected surge in domestic and international visitors, who are projected to reach 150 million annually.

Steady growth in hotel inventory

“Knight Frank” noted that the total number of hotel rooms in the Kingdom reached approximately 167,500 by the end of the first quarter of 2025, with 61% of them classified as upscale or luxury. As development projects continue, approximately 99,500 new rooms are expected to be delivered by 2030, 78% of which will also fall into the luxury category.

A Growing Contribution to the National Economy

According to data from the Saudi Ministry of Tourism, the Kingdom attracted approximately 127 million tourists in 2024, contributing 4.7% to the gross domestic product, amid expectations of reaching 10% by the end of the decade as part of the Saudi Vision 2030 targets.

The number of international visitors grew by 9.5% in 2024 to reach 30 million, compared to 27.4 million in 2023, while spending on tourism reached a record high of 153.6 billion riyals, representing a year-over-year increase of 13.82%.

Visa Facilitation Supports Tourism Inflows

The e-Visa platform has helped boost the Kingdom’s appeal by allowing residents of 66 countries—including the United States, the United Kingdom, China, Germany, and Japan—to obtain a one-year multiple-entry visa, allowing stays of up to 90 days per visit for tourism, Umrah, and business events. Hajj, however, remains subject to a special visa system.

Leisure Tourism Outpaces Religious Tourism
Although religious tourism still accounts for 26% of total inbound trips, leisure tourism now accounts for 30%, while visits to friends and family accounted for 24%, with the remainder related to business, education, and healthcare, according to data from the Ministry of Tourism for the third quarter of 2024.

A High-End Tourism Destination

Faisal Dorani, Head of Research for the Middle East and North Africa at Knight Frank, said that “The growing focus on luxury hotels reflects the Kingdom’s rising status as a high-end tourist destination,” but he noted the need to expand the range of mid-range accommodation options to meet domestic demand and attract a broader spectrum of international visitors.

Dorani added: “Our research indicates that major global companies such as Hilton, Marriott, and InterContinental are leading the expansion, underscoring the appeal of the Saudi market.”

Major Events Boost Tourism Momentum

For his part, Osama Al-Qadri, Head of Hospitality, Tourism, and Leisure Consulting, said: “The Kingdom is preparing to host major historic events such as the 2029 Asian Games, Expo 2030, and the 2034 World Cup, which are expected to attract 150 million visitors and put the Kingdom on the global tourism map.”

Al-Qadri noted that massive investments in infrastructure and hospitality are paving the way for a radical transformation of the Kingdom’s image and reinforcing its status as a global destination for culture, sports, and business travel.

Giga Projects Are Reshaping the Holy Cities

Religious tourism plays a pivotal role in the market; in 2024, the Kingdom welcomed 1.8 million Hajj pilgrims and 35.7 million Umrah pilgrims, including 16.9 million international Umrah pilgrims—a 25% increase over 2023 —the highest number of international Umrah pilgrims ever recorded.

Giga projects such as Visions of the Haram, Visions of the City, the Knowledge Economic City, and the Makkah Trail are driving the hotel boom in Makkah and Madinah, where work is underway on more than 252,000 hotel rooms, 64% of which are in the 4- and 5-star categories.

Foreign Investments in Real Estate in Mecca and Medina

Ammar Hussein, a managing partner in the research division in Saudi Arabia, said, that allowing international investors to invest in real estate companies operating in Mecca and Medina represents a strategic shift, as it will lead to the injection of significant foreign capital that will enhance the liquidity of current and future projects.

According to an analysis by Knight Frank, pilgrims from Asian countries (excluding Arab countries) account for 63% of the total number of pilgrims, followed by Arab countries at 22%, then non-Arab African countries at 11%, and finally other countries (from Europe, the Americas, and Australia) at 3%.