Saudi Arabia’s Tourism Expansion: Makkah, Madinah, and Riyadh Prepare for Luxury Hotel Growth with Increased Visitor Numbers from Russia, UK, Germany, Japan, US, and China

Saudi Arabia’s tourism landscape is undergoing a significant transformation, driven by a surge in hotel developments and a growing influx of both domestic and international visitors. As part of its ambitious Vision 2030 plan, the Kingdom is set to build over 362,000 hotel rooms by 2030 to accommodate a projected increase in tourist arrivals. A large portion of this new capacity, specifically 78%, will be in the luxury, upscale, and upper-upscale hotel segments. With a projected 150 million visitors expected to flock to the Kingdom, the hospitality industry is preparing to handle this massive demand.

As of early 2025, Saudi Arabia’s hotel stock stands at 167,500 keys, with 61% of these rooms classified as luxury or upscale. The planned new additions will elevate the country’s appeal as a top destination for high-end travelers, positioning it as a key player on the global tourism map. This transformation is already evident, with international hospitality giants like Hilton, Marriott, and IHG leading the charge in expanding their footprint across the country.

The Rise of High-End Accommodation and Growing Visitor Numbers

Saudi Arabia’s focus on high-end hotel development reflects its growing international reputation as a luxury travel destination. The Kingdom’s efforts to enhance its tourism infrastructure have resulted in substantial increases in international tourist spending, which hit a record SAR 153.61 billion (approx. US$ 40.9 billion) in 2024, marking a 13.82% increase from the previous year. Despite this luxury-focused trend, there is also a recognized need for more affordable accommodation options to cater to a wider range of tourists, including those from the domestic market.

A critical aspect of the Kingdom’s tourism growth is the MICE (Meetings, Incentives, Conferences, and Exhibitions) sector, which has been gaining traction as part of the larger push to diversify Saudi Arabia’s tourism base. The development of key events such as the Asian Games 2029, Expo 2030, and FIFA World Cup 2034 are expected to draw millions of visitors, contributing heavily to the overall economic boost.

Domestic and International Growth in Tourism

As of 2024, Saudi Arabia’s tourism numbers show a significant shift. The country welcomed 127 million visitors, with 30 million of them coming from international markets, marking a 9.5% increase from 2023. This growth is partly fueled by the eVisa platform, which has made it easier for tourists from countries such as Russia, the UK, Germany, Japan, the US, and China to visit the Kingdom. The platform offers a one-year multiple-entry visa, allowing tourists to stay for up to 90 days per visit for leisure, business, or family visits, adding to the attractiveness of Saudi Arabia as a destination.

While religious tourism remains a major driver of Saudi Arabia’s visitor numbers, non-religious tourism is steadily increasing. In 2024, 30% of all arrivals were leisure travelers, 24% visited friends or family, and business and educational travel made up the remainder. The diversity in traveler profiles reflects the Kingdom’s increasing global appeal beyond its religious significance.

Key Developments in Makkah and Madinah

The religious tourism sector, particularly in the holy cities of Makkah and Madinah, continues to be a critical component of Saudi Arabia’s hospitality strategy. Major hotel developments are underway to support Hajj and Umrah pilgrims. In 2024, the country hosted 1.8 million Hajj pilgrims and more than 35.7 million Umrah pilgrims, a significant increase from previous years. In fact, 16.9 million international Umrah pilgrims visited the Kingdom in 2024, marking a 25% increase from the previous year.

The holy cities are seeing a reshaping of their landscapes with massive hotel projects, such as Rua Al Haram and Masar Makkah, which will add tens of thousands of luxury rooms. In total, over 252,000 hotel rooms are planned for these cities, with the majority being 4- and 5-star accommodations. This is part of a broader effort to position Saudi Arabia as a top global religious and luxury travel destination.

Giga Projects and International Investments

Saudi Arabia is also opening up its religious tourism hubs to international investment, especially in Makkah and Madinah, where several large-scale projects are transforming the area. The Kingdom’s decision to allow international investment in publicly listed real estate firms operating in these cities is expected to bring significant capital into the sector. This is part of the Kingdom’s broader efforts to modernize and grow its iconic tourism hubs.

With the hosting of the Expo 2030 alone expected to bring in 40 million visitors, Saudi Arabia’s hospitality and tourism industry is set for a monumental expansion. This will not only cater to the growing numbers of religious pilgrims but also attract a diverse range of global travelers.

Travel Tips and What Visitors Should Expect

Travelers to Saudi Arabia should be prepared for an evolving tourism scene with world-class hospitality and modern infrastructure. With the ongoing development in both luxury and affordable accommodation, visitors will have a broad range of choices. Those planning to visit for business events, leisure, or religious tourism can expect easy access to popular destinations through the eVisa platform, which simplifies travel logistics.

Final Thoughts

Saudi Arabia’s hospitality sector is undergoing a significant transformation, with an expanding network of high-end hotels, new tourism developments, and international events boosting the Kingdom’s appeal. The influx of international visitors, combined with the continued growth of the luxury hotel market, ensures that Saudi Arabia is on track to meet its ambitious tourism targets for 2030. As the Kingdom invests heavily in its tourism infrastructure, it is setting the stage for a future of even greater global recognition as a premium travel destination.

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