The Kingdom of Saudi Arabia (KSA) Tourism Market By Travel Purpose (Medical Tourism, Leisure Tourism, Business Tourism, and Others), By Travel Type, By Booking Mode, By Travel Days, By Age Group - Industry Outlook, Key Companies (Marriott International, Accor, Hyatt Hotels Corporation, and others), Trends and Forecast 2024-2033

Tourism in Saudi Arabia includes leisure, religious, cultural, and adventure travel. Historically centered on Islamic pilgrimages to Mecca and Medina, it has expanded to heritage sites like Al-Ula, modern attractions in Riyadh, and Red Sea resorts. The Kingdom's Vision 2030 prioritizes tourism and aims to diversify its economy beyond oil. With rich historical and natural offerings, Saudi Arabia appeals to international and domestic travelers.

Further, tourism in Saudi Arabia is growing exponentially, driven by relaxed visa policies, infrastructure investments, and marketing campaigns. Also, massive hospitality, transport, and entertainment developments are there. With large investments allocated to megaprojects like NEOM and the Red Sea Project, demand for skilled workers and tourism services is also rising.

In addition, key trends like eco-tourism, cultural heritage tourism, and luxury travel. Visitors highly look for authentic Saudi experiences like exploring UNESCO sites like Diriyah. Adventure tourism, like desert safaris and scuba diving, is gaining momentum. Events like Formula E and the Riyadh Season attract global attention, showcasing Saudi Arabia as a modern, world-class destination.

Moreover, Saudi Arabia's economic diversification is contributing to job creation and GDP growth. Despite its potential, challenges like cultural adaptation, sustainability, and balancing tradition with modernization remain. Using technology, partnerships, and regional stability will be important for achieving long-term success in the global tourism market.

Key Takeaways

• Market Growth: The Kingdom of Saudi Arabia (KSA) Tourism Market size is expected to grow by 52.8 billion, at a CAGR of 8.4% during the forecasted period of 2025 to 2033.
• By Travel Purpose: The leisure tourism segment is anticipated to get the majority share of the Kingdom of Saudi Arabia (KSA) Tourism Market in 2024.
• By Age Group: The Sales segment is expected to be leading the market in 2024
• By Travel Days: The less than 7 day’s segment is expected to get the largest revenue share in 2024 in the Kingdom of Saudi Arabia (KSA) Tourism Market.
• Use Cases: Some of the use cases of The Kingdom of Saudi Arabia (KSA) Tourism include luxury & entertainment tourism, adventure & eco-tourism, and more.

Use Cases

• Religious Tourism (Hajj and Umrah): Saudi Arabia is the spiritual hub for Muslims, hosting millions of pilgrims annually for Hajj and Umrah, contributing majorly to its tourism revenue and global cultural influence.
• Cultural and Heritage Tourism: With UNESCO World Heritage Sites like Al-Ula and Diriyah, the Kingdom attracts travelers interested in history, archaeology, and local traditions, offering a unique cultural experience.
• Adventure and Eco-Tourism: Saudi Arabia's broad deserts, mountains, and the Red Sea coastline provide opportunities for adventure tourism, like hiking, diving, and off-road experiences, promoting eco-tourism in clean natural settings.
• Luxury and Entertainment Tourism: The Kingdom invests in luxury resorts, world-class events and mega-projects like NEOM, creating a thriving sector for high-end travel experiences.

Market Dynamic

Driving Factors

Vision 2030 and Infrastructure Development
Saudi Arabia's Vision 2030 is a major growth driver, focusing on diversifying the economy through tourism. Massive investments in infrastructure, like airports, hotels, and entertainment complexes, are enhancing accessibility and the overall visitor experience, attracting both domestic and international tourists.

Relaxed Visa Policies and Global Partnerships
The introduction of new tourist visas and easier access for international travelers is driving growth. Saudi Arabia's efforts to collaborate with global airlines and tourism companies and host international events help promote the country as a top travel destination, fostering international tourism.
Restraints

Cultural and Social Restrictions
Saudi Arabia's conservative social & cultural norms may limit the appeal to some international tourists, mainly those from liberal countries. Restrictions on certain activities, attire, and gender interactions could create challenges in attracting a large global audience, mostly for non-Muslim visitors.

Environmental Sustainability Challenges
The rapid growth of tourism infrastructure and development projects in Saudi Arabia could create environmental concerns. Ensuring sustainability while promoting growth requires balancing resource management, conservation efforts, and the impact of large-scale projects on natural landscapes.

Opportunities

Growth in Domestic Tourism
With a young population and higher disposable income, Saudi Arabia's domestic tourism market provides many opportunities. Expanding local travel experiences, like cultural festivals, adventure tourism, and heritage site exploration, can promote a deeper connection with national identity while driving tourism revenue.

Global Sports and Entertainment Hub
Saudi Arabia's investments in sports & entertainment events, like Formula E, concerts, and the upcoming Saudi International Golf Tournament, provide various growth opportunities. These high-profile events can position the Kingdom as a global tourism destination, attracting international visitors and boosting the entertainment tourism sector.

Trends

Rise in Luxury and Wellness Tourism
Saudi Arabia is highly focused on luxury and wellness tourism, with high-end resorts, spas, and exclusive experiences. The development of luxury destinations like the Red Sea Project and NEOM is attracting affluent travelers looking for relaxation, wellness retreats, and premium services, positioning the Kingdom as a global luxury destination.

Digitalization and Virtual Experiences
The Kingdom is adopting technology to improve the tourism experience, with digital platforms for bookings, virtual tours of historical sites, and augmented reality at key attractions, which not only improves accessibility but also attracts tech-savvy tourists who seek seamless travel experiences.

Research Scope and Analysis

By Travel Purpose

Leisure tourism plays a major role in driving the growth of Saudi Arabia's tourism market and is set to lead the market in 2024. The Kingdom is transferring its focus beyond religious tourism to provide diverse experiences, like luxury resorts, adventure activities, and cultural heritage tours. With destinations like the futuristic NEOM, Red Sea islands, and UNESCO sites like Al-Ula, Saudi Arabia attracts visitors looking for distinctive and relaxing getaways. Events like the Riyadh Season and international concerts add to its appeal. 

Leisure tourism not only boosts the economy but also supports diversifying the Kingdom's image as a global destination. By offering customized experiences, Saudi Arabia caters to families, adventure seekers, and luxury travelers, fostering long-term tourism growth. Other travel purposes, like religious and heritage tourism, highly contribute to the growth of Saudi Arabia’s tourism market. 

The Kingdom continues to attract millions of Muslim pilgrims for Hajj and Umrah, making religious tourism a key pillar. In addition, Saudi Arabia’s rich history and cultural landmarks, like Al-Ula and Diriyah, draw tourists interested in exploring its heritage. These segments play a major role in promoting the Kingdom as a destination for both spiritual and cultural experiences. By focusing on its religious significance and heritage sites, Saudi Arabia is expanding its tourism offerings and boosting international interest.

By Travel Type

Group travel is anticipated to be the largest segment as a travel type in 2024 in KSA’s tourism market by attracting large numbers of visitors through organized tours and events. Whether its families, friends, or corporate groups, Saudi Arabia provides a variety of group-friendly experiences, like guided tours to historical sites like Al-Ula, desert safaris, and visits to religious landmarks like Mecca and Medina. 

Group travel packages provide convenience and affordability, making it simpler for travelers to explore multiple destinations. In addition, Saudi Arabia’s growing number of cultural festivals, sporting events, and conferences attract group travelers from around the world, boosting tourism. By catering to groups, Saudi Arabia strengthens its position as a diverse & accessible destination for various types of travelers.

Further, solo travel is becoming an important part of Saudi Arabia’s tourism growth as more individuals look for unique, personalized experiences. With attractions like historical sites, modern cities, and nature reserves, solo travelers can explore at their own pace. Saudi Arabia’s aims on safety, ease of travel, and customized experiences for individuals are encouraging more solo tourists, helping diversify its tourism market, and boosting international visitor numbers.

By Booking Mode

Online booking is a major factor in the growth of Saudi Arabia’s tourism market. The convenience of booking flights, accommodations, and tours through digital platforms makes travel to the Kingdom more accessible to international tourists. Many travel agencies and hotels now provide easy-to-use websites and apps, allowing visitors to plan and book their trips smoothly. The Kingdom’s tourism authorities have also adopted digital platforms to promote destinations, events, and special offers, which has led to an increase in online bookings for everything from religious tours to luxury resorts. 

The growth of online booking reflects the global trend towards digitalization, making Saudi Arabia a more attractive and user-friendly destination for tech-savvy travelers, ultimately boosting the tourism sector. However, physical booking also remains an important part of Saudi Arabia’s tourism growth, mainly for travelers who prefer personal interaction and assistance. 

Many tourists still book through travel agencies or directly at hotel counters, particularly for group or religious tours, which helps build trust and provides customized recommendations, offering a more hands-on experience that appeals to those unfamiliar with online platforms and supporting local tourism businesses.

By Travel Days

Travel trips of less than 7 days are set to be a major part of the growth of Saudi Arabia's tourism market and are also set to be the largest segment in 2024 by attracting short-term visitors. Many tourists, mostly from neighboring countries, visit for quick getaways to explore cultural landmarks, enjoy entertainment events, or relax at luxury resorts. Short visits are appealing because they need less time commitment, making them perfect for busy travelers. 

Saudi Arabia’s tourism offerings, like religious trips, heritage sites, and seasonal events like the Riyadh Season, cater well to this segment. By allowing quick, memorable experiences, Saudi Arabia allows more visitors to come for short stays, contributing to the overall growth of the country’s tourism industry. Further, trips lasting 7 to 15 days are also crucial for the growth of Saudi Arabia’s tourism market, as they allow visitors to explore various destinations and experiences. 

Tourists can visit key cultural landmarks like Al-Ula, Riyadh, and Jeddah, while also enjoying adventure activities, luxury resorts, and religious sites like Mecca and Medina, which allows travelers to immerse themselves in both the modern and traditional aspects of the Kingdom. With longer stays, tourists can enjoy a more relaxed and fulfilling experience, which allows repeat visits and word-of-mouth recommendations. By promoting packages for longer trips, Saudi Arabia taps into a wide segment of travelers looking for in-depth cultural and leisure experiences.

By Age Group

The 30- to 41-year-old people play a major role in the growth of Saudi Arabia’s tourism market, as they are mostly in their prime earning years and more likely to travel for both leisure and business, which is attracted to a mix of cultural experiences, adventure tourism, and luxury resorts. With interests in exploring historical sites, attending events, and enjoying family-friendly activities, they contribute highly to both domestic and international tourism. 

In addition, this age group is tech-savvy and mostly books online, making it easier for Saudi Arabia to reach them through digital marketing. By providing customized experiences, Saudi Arabia can continue to capture the interest of this active and diverse age group. Moreover, the below-30-year-old age group is important to the growth of Saudi Arabia’s tourism market, as they are mostly looking for adventure, culture, and unique experiences and are drawn to events like music festivals, sports, and trendy destinations, along with budget-friendly travel options. 

With a major interest in eco-tourism, entertainment, and social media-driven travel, they help promote Saudi Arabia as a modern, exciting destination, driving youth tourism and fostering a dynamic travel culture.

The Kingdom of Saudi Arabia (KSA) Tourism Market Report is segmented on the basis of the following

By Travel Purpose

• Medical Tourism
• Leisure Tourism
• Business Tourism
• Others

By Travel Type

• Solo
• Group

By Booking Mode

• Physical Booking
• Online Booking

By Travel Days

• Less than 7 Days
• 7 to 15 Days
• More than 15 Days

By Age Group

• Below 30 years
• 30 to 41 years
• 42 to 49 years
• 50 years & above

Competitive Landscape

The competitive landscape of Saudi Arabia’s tourism market is rapidly transforming, driven by a mix of domestic and international players. The government’s Vision 2030 initiative is driving large investments in infrastructure, hospitality, and entertainment, attracting both local and global companies. While regional competitors in the Middle East also target similar tourist segments, Saudi Arabia comes out with its unique cultural, religious, and adventure offerings. 

The competition revolves around providing diverse experiences, luxury services, and seamless travel, making the Kingdom a key player in the growing global tourism market, aiming to attract a broad range of travelers.

Some of the prominent players in the Kingdom of Saudi Arabia (KSA) Tourism are

• Marriott International
• Accor
• Hyatt Hotels Corporation
• Attar Travel
• Almosafer
• Zahid Travels
• Riyadh AIr
• Four Seasons Hotels & Resorts
• Six Senses
• Flynas
• Other Key Players

Recent Developments

• In November 2024, Saudi Arabia’s Ministry of Tourism is helping private sector growth by launching Ramlah Co. for Tourist Trips and Resorts, a new initiative to attract visitors to the Hail region, which is part of the broader Saudi Winter Season campaign, which offers distinctive experiences in its key destinations.
• In November 2024, The Saudi Tourism Authority (STA) launched an AI travel buddy called Sara, showcased in beta mode at London's World Travel Market. Billed as the first digital hyper-realistic human travel companion created for a national tourism board, Sara goes beyond conventional chatbots by providing visitors with a lifelike interactive experience. Further, it features contextual understanding and learning capabilities, remembering past conversations to provide personalized travel recommendations and real-time assistance.
• In November 2024, Saudi Arabia is providing refunds on value-added tax for eligible purchases made by tourists starting in 2025, which were open for public consultation through the Istitlaa platform until Sept. The proposed amendments cover the definition of eligible goods, the refund process, and the role of authorized service providers in handling claims.
• In November 2024, Saudi Tourism Ministry announced support for 17 unique tourism initiatives in Al Ahsa region of the kingdom, valued at more than 931 million, that, on completion, will add 1,800 more hotel rooms to the kingdom, reported SPA, which is focused on boosting the Saudi tourism sector, using Al Ahsa's exceptional features that qualify it to become a major tourist destination in the kingdom and the region.