Saudi Arabia’s tourism sector contributed $178bn (SAR667.50bn) to gross domestic product in 2025 and accounted for 46% of the region’s total tourism economy, the World Travel & Tourism Council (WTTC) said in its 2025 Economic Impact Report cited by the Saudi Tourism Authority on May 6.
Travel and tourism made up 7.4% of Saudi GDP in 2025, with the sector growing at nearly twice the global average rate of 4.1% and ahead of the regional average of 5.3%, the WTTC said. The figures reflect the sector’s full economic impact, including direct, indirect and induced contributions.
The Saudi Tourism Authority said in a press release that the WTTC findings positioned the Kingdom as the largest and fastest-growing travel and tourism market in the region.
Domestic visitors hit 28.9mn in Q1
Domestic tourism continued to drive momentum in the first quarter of 2026, with 28.9mn domestic visitors recorded across the Kingdom, a 16% year-on-year increase. Tourism spending reached SAR34.7bn ($9.25bn) over the same period, according to figures from the Ministry of Tourism.
Saudi tourism is expanding at nearly twice the global average growth rate, outperforming regional peers and reinforcing the Kingdom’s position as the fastest-growing tourism market in the region.
Giga-project destinations driving momentum
The performance comes as Saudi Arabia accelerates the rollout of giga-project destinations under Vision 2030. AlUla is positioning itself as a cultural hub combining heritage with contemporary arts and creative programming. The Red Sea destination is advancing regenerative tourism through resort openings on Shura Island and across the wider archipelago. Qiddiya is being developed as the country’s flagship entertainment destination with large-scale attractions aimed at family and international audiences.
Investment in infrastructure, improved air connectivity and visa facilitation continue to support the sector’s trajectory. The rise in leisure travel reflects the impact of these measures in broadening the Kingdom’s global appeal beyond traditional religious and business segments, the Saudi Tourism Authority said.
Vision 2030 target of 150mn visitors
Saudi Arabia’s tourism push forms a central pillar of its economic diversification strategy, with Vision 2030 targeting 150mn visitors annually by 2030 and a tourism contribution of 10% to GDP. The Kingdom welcomed a record number of international visitors in 2024 and has consistently ranked among the top-performing tourism economies on UN Tourism rankings since reopening to leisure visitors in 2019.
Saudi tourism growth has come alongside a wave of international hotel signings, with global operators including Marriott, Hilton, Accor, IHG and Hyatt expanding their Kingdom pipelines. Air capacity has risen sharply through fleet expansion at flag carrier Saudia, the launch of Riyadh Air and the opening of Red Sea International Airport.
Regional resilience amid Iran war
The sector’s momentum has continued despite regional headwinds linked to the Iran war, with Saudi authorities and operators reporting that domestic and intra-regional demand has cushioned international booking softness seen in some neighbouring markets.
Mixed-use developments combining hospitality, residential, retail and entertainment components are dominating new project pipelines in major cities, with Riyadh and Jeddah accounting for the bulk of new branded hotel rooms under construction.
The WTTC, the global trade body representing the private sector in travel and tourism, releases its Economic Impact Report annually in partnership with research firm Oxford Economics.