The tourism villages and resorts sector in Saudi Arabia will witness accelerated growth during 2024-2025, supported by rising demand for domestic tourism and the expansion of hospitality facilities in various regions, as the Kingdom's Vision 2030 programs and projects continue, which aims to transform tourism into one of the most important tributaries of the national economy.

Resorts and villages in Saudi Arabia are on an upward trajectory.

A jump in the number of hospitality facilities... and resorts are on the upward trajectory

The number of licensed tourist accommodation facilities in the Kingdom reached 4988 by the end of the first quarter of 2025, including hotels, hotel apartments, tourist villages and resorts, and various guesthouses, according to data released by the General Authority for Statistics, representing a growth of 78% year-on-year, reflecting the significant recovery in the sector and indicating the entry of dozens of new resorts into the market within one year.

The number of licensed tourist accommodation facilities in the Kingdom reached 4988 by the end of the first quarter of 2025.

Rising occupancy rates... demand exceeds supply in some areas

<The hotel occupancy rate recorded 63% during the first quarter of 2025, an increase of 2% compared to the same period of the previous year, according to data released by the Ministry of Tourism, which confirmed that despite the high occupancy, the market maintained balanced price levels, as the average hotel room price reached SAR 477, which enhances the ability of resorts to attract multiple categories of visitors, while the number of employees in tourism and travel activities increased to 983 thousand and 253 employees during the same period, the highest level witnessed in the history of the hospitality sector in the Kingdom.

Recovery of domestic tourism... and resorts are the preferred choice for families

Ministry of Tourism indicators confirmed that resorts and tourist villages have become one of the most demanded options for Saudi families, in conjunction with the development of the level of services, the diversity of recreational activities, and the high quality of tourism experiences within the Kingdom, as this shift is a key element in enhancing the sustainability of the sector and reducing dependence on foreign travel, especially with the expansion of marine, mountain and desert destinations.

Ministry of Tourism indicators confirmed that resorts and tourist villages have become one of the most demanded options for Saudi families.

Direct economic gains and labor market stimulation

The prosperity of the villages and resorts sector contributes to stimulating the local economy through the influx of tourist spending, while creating new job opportunities for Saudis in hospitality, operation, maintenance and entertainment, as well as attracting new investments from local and international companies in luxury and medium resort projects, in addition to stimulating supporting sectors such as transportation, restaurants, logistics and recreational activities, as this expansion comes in line with the targets of Vision 2030 to increase the contribution of tourism to 10% of GDP by the end of the decade.

The expansion is in line with the targets of Vision 2030 to increase the contribution of tourism to 10% of GDP by the end of the decade.