Saudi Arabia’s hospitality sector thrived in 2023, with record growth driven by corporate tourism and Vision 2030 initiatives. Occupancy rates, ADR, and RevPAR surged, exceeding even pre-pandemic levels. Mega-projects and major events are attracting significant international investment and tourism, ensuring continued growth in the coming years.
Saudi Arabia’s ambitious Vision 2030 strategy has propelled it to the 3rd position in the global tourism rankings, surpassing UAE, Qatar, Oman, and Bahrain. This unprecedented growth is fueled by massive investments, mega-projects, and a multi-regional approach to tourism development, encompassing luxury resorts, eco-tourism, and cultural heritage.
The Middle East is experiencing a tourism boom, with Saudi Arabia, Qatar, the UAE, and Bahrain setting new records in visitor numbers, air connectivity, and hotel occupancy. Driven by economic diversification strategies and strategic investments, these Gulf nations are becoming global tourism powerhouses.
The Middle East’s tourism sector is experiencing explosive growth, with the UAE and Saudi Arabia emerging as leading destinations. Driven by ambitious initiatives and a focus on personalized experiences, the region is attracting record numbers of visitors and shaping the future of travel.
Saudi Arabia’s Ministry of Tourism highlighted the Kingdom’s growing tourism potential at the 46th Annual NYU International Hospitality Investment Conference. The event showcased Saudi Arabia’s commitment to diversifying its economy and creating a global tourism hub. Keynote speaker Mahmoud Abdulhadi outlined the Kingdom’s plans for new destination development and infrastructure, while representatives from the Ministry of Tourism and Ministry of Investment discussed the benefits of the Tourism Investment Enablers Program (TIEP). The conference also featured a fireside chat with Gloria Guevara Manzo, who shared insights on emerging trends in global tourism.
In 2023, Saudi Arabia’s travel sector has exceeded expectations, leading to a revised target of 150 million visitors by 2030. The Kingdom has witnessed significant growth in tourist arrivals, domestic and international, bolstered by regulatory changes such as the new ‘Visiting Investor’ visa. As part of its economic diversification strategy, Saudi Arabia aims to make tourism its second largest revenue source by 2030. The launch of Riyadh Air and the Air Connectivity Program are key initiatives driving industry growth.
The Korea Tourism Organization (KTO) has established its first representative office in Riyadh, Saudi Arabia, as part of its strategy to strengthen relationships with Gulf Cooperation Council (GCC) countries and boost tourism from the region. The Riyadh office, managed by Aviareps, will focus on promoting South Korea as an ideal travel destination, increasing visitor numbers, boosting tourist spending, and encouraging longer stays. This strategic initiative comes at an opportune time as foreign tourism to South Korea rebounds, and is expected to positively impact the tourism sector by attracting Saudi travelers with South Korea’s unique blend of cultural, culinary, and shopping experiences.
Radisson Hotel Group celebrates its latest addition to Saudi Arabia’s hospitality scene, the Radisson Hotel & Residence Riyadh Olaya. Situated in the vibrant capital city of Riyadh, this new establishment marks the group’s 28th property in the kingdom and the 9th in Riyadh. Designed with a modern urban aesthetic, the hotel offers 201 guest rooms and suites, catering to the needs of both business and leisure travelers. Facilities include a full-service restaurant, a cozy lobby lounge, state-of-the-art meeting and event spaces, and recreational amenities such as fitness centers, a swimming pool, a spa, and a kids club. This opening aligns with Saudi Arabia’s Vision 2030, which aims to bolster the country’s tourism and hospitality sectors.
Cruise Saudi, a subsidiary of the Public Investment Fund (PIF), has officially launched its new cruise line, AROYA Cruises, marking the commercial debut of the first Arabian cruise line. AROYA Cruises aims to offer a unique blend of authentic Arabian hospitality and luxurious experiences both at sea and on land, becoming a pioneer in the Arabian cruise market. The cruise line emphasizes Arabian generosity and Saudi hospitality, ensuring that guests receive exceptional service focused on comfort and luxury. The initial tourist trips for AROYA Cruises are scheduled to begin in December 2024, with itineraries including destinations along the Red Sea and visits to AROYA Cruise’s private island as well as ports in Egypt and Jordan.
The Saudi Tourism Authority and Quintessentially, a global leader in luxury lifestyle management, have formed a strategic partnership to enhance tourism offerings in Saudi Arabia. The partnership will leverage Quintessentially’s extensive network and services to provide premium experiences for tourists and business partners, further strengthening the Kingdom’s position as a desirable destination.
