Travel, Tourism & Hospitality
Saudi hospitality sector posts solid growth in 2024, says report
Saudi hospitality industry has recorded solid growth in 2024 with the sector contributing 5% of the kingdom’s GDP, according to an industry expert. The kingdom recorded close to 30 million bound tourists in 2024, up from 27.4 million the year before.
Saudi Arabia's hospitality industry has recorded solid growth in 2024 with the kingdom recording close to 30 million bound tourists in 2024, up from 27.4 million in 2023, according to CBRE Middle East, the global leader in commercial real estate.
This has helped the sector contribute close to 5% of the country’s total GDP and put it on track to reach a targeted 10% contribution by the end of 2030, stated the report.
Over the same period, Saudi Arabia is targeting a significant increase in inbound tourism, aiming to attract 70 million visitors and a total of 170 million tourists annually, it added.
Saudi Minister of Tourism Ahmed Al Khateeb said this ambitious goal is being supported by the country's strategic investment initiatives, designed to broaden and deepen the visitor profile.
The kingdom is also leveraging its major global sporting events, including the 2034 FIFA World Cup, to further enhance its appeal to international visitors, he stated.
According to CBRE, key business and MICE markets such as Riyadh saw more positive movements across all performance metrics, including strong growth in ADRs and RevPAR, and a more marginal increase in average occupancy rates.
Similarly, markets like Dammam and Madinah, also saw positive dynamics prevail, it stated.
While the long-term prospects for Saudi's tourism industry are promising, the recent surge in new hotel supply has led to a slight decline in occupancy rates, down 1.7% year-on-year in December, said the report.
Average daily rates (ADRs) increased 2.1% during the same period, resulting in a relatively stable revenue per available room (RevPAR) compared to the full year, stated CBRE.
With room growth expected to accelerate in the coming 12-24 months, hotels are likely to experience heightened competition, particularly in markets like Jeddah and Makkah where a significant volume of new keys are expected to complete, it added.-TradeArabia News Service