Saudi Arabia announces 99 percent growth in tourism hospitality licenses, 107 percent growth in rooms

Saudi Arabia’s Ministry of Tourism has announced that the number of licensed tourism hospitality establishments across the Kingdom has surpassed 3,950 by the end of the third quarter (Q3) of 2024, achieving a remarkable growth rate of 99 percent compared to the same timeframe in 2023. 

According to the ministry, the total number of licensed rooms has exceeded 443,000 by the end of Q3 2024, marking a significant increase of 107 percent from the previous year, when there were over 214,000 rooms. In Q3 2023, the count of licensed hospitality facilities stood at approximately 2,000.

Efforts by the Ministry of Tourism

This substantial increase in tourism hospitality licenses can be attributed to the dedicated efforts made by the Ministry of Tourism to support operators and investors within the sector in obtaining their licenses. These initiatives included reducing operating fees by as much as 22 percent. Additionally, the ministry has implemented a decision to exempt hospitality facilities from municipal fees, reflecting its commitment to enhancing the quality of services offered to both international and domestic tourists.

“Our Guests Are Our Priority” campaign

As part of its “Our Guests Are Our Priority” campaign, the Ministry of Tourism has encouraged all users of hospitality services to voice their inquiries and feedback regarding the services they receive by contacting the unified tourism center at 930.

Read more: SRSA, ICOMIA sign MoU to advance coastal tourism in the Red Sea 

Global promotional campaign launch

In October 2024, Saudi Arabia’s Minister of Tourism and Chairman of the Board of Directors of the Saudi Tourism Authority (STA), Ahmed Al-Khateeb, launched a global promotional campaign in Beijing, China, which included the inauguration of the Saudi Travel Expo at Tiantan Park. The minister led a delegation of senior officials and key partners from Saudi Arabia’s tourism sector, aiming to enhance the nation’s standing on the global tourism stage by showcasing the readiness of its tourism destinations to welcome Chinese visitors. The delegation held a series of meetings and signed multiple memoranda of understanding with prominent Chinese companies.

Tourism spending in 2023

Moreover, the Saudi Ministry of Tourism reported that tourism spending in the Kingdom reached SAR141 billion ($37.57 billion) in 2023. The ministry’s annual tourism statistics report, released in August 2024, revealed that the highest expenditure was on accommodation, totaling SAR45 billion, followed by shopping at over SAR25.5 billion. Transportation and travel expenses exceeded SAR21.5 billion, while spending on food and beverages reached SAR19.4 billion. Additional expenses accounted for over SAR25.5 billion, and entertainment spending was approximately SAR4 billion.

Record high for inbound tourists

In 2023, Saudi Arabia welcomed a record 27.4 million inbound tourists, reflecting a 65 percent increase over the previous year, with total spending rising by 44 percent. Notably, the tourism sector attracted 8.6 million visitors from the Gulf Cooperation Council (GCC) countries, contributing over SAR15 billion ($4 billion) to the economy. The report highlighted Bahrain as the leading source market, sending 3.4 million tourists, followed closely by Egypt and Pakistan, with 2.6 million and 2.5 million, respectively.

Continued growth in 2024

During the first half of 2024, tourism spending in Saudi Arabia reached around SAR150 billion ($40 billion), indicating a 10 percent annual increase in both the number of travelers and their expenditures, as revealed by Minister Ahmed Al-Khateeb in July 2024. At a conference focused on the 2024 summer tourism program, Al-Khateeb announced plans to introduce a tourist visa the following month to attract more international visitors and further drive growth in the sector. This initiative aligns with the Kingdom’s ambitious goal of welcoming 150 million tourists annually by 2030, emphasizing its commitment to establishing itself as a premier global tourism destination.

Surge in passenger air traffic

The expansion of the tourism sector has been bolstered by a 17 percent increase in passenger air traffic, reaching 62 million in the first half of 2024, compared to 53 million during the same period the previous year. This growth was further supported by a 12 percent rise in the number of flights, totaling 446,000 as opposed to 399,000 in the first half of 2023.

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