Saudi Arabia Hospitality Market Size to Hit USD 115.8 Billion by 2034 | With a 9.03% CAGR

Saudi Arabia Hospitality Market Overview

Market Size in 2025: USD 53.2 Billion

Market Size in 2034: USD 115.8 Billion

Market Growth Rate 2026-2034: 9.03%

According to IMARC Group's latest research publication, "Saudi Arabia Hospitality Market: Industry Trends, Share, Size, Growth, Opportunity and Forecast 2026-2034", The Saudi Arabia hospitality market size was valued at USD 53.2 Billion in 2025. Looking forward, IMARC Group estimates the market to reach USD 115.8 Billion by 2034, exhibiting a CAGR of 9.03% during 2026-2034.

How AI is Reshaping the Future of Saudi Arabia Hospitality Market

• AI-powered chatbots and virtual concierges streamline guest services in Saudi hotels, providing instant multilingual support and personalized recommendations, enhancing visitor experiences across diverse international traveler segments.
• Smart room technologies utilize AI to customize temperature, lighting, and entertainment preferences automatically, optimizing energy efficiency while delivering personalized comfort aligned with Saudi Arabia's sustainability goals under Vision 2030.
• AI-driven revenue management systems analyze booking patterns and market demand in real-time, enabling Saudi hotels to optimize pricing strategies dynamically and maximize occupancy rates during peak tourism and pilgrimage seasons.
• Predictive maintenance platforms leverage AI to monitor hotel infrastructure and equipment performance, reducing downtime and operational disruptions across Saudi Arabia's rapidly expanding hospitality portfolio.
• AI analytics platforms process guest feedback and behavior data to identify service improvement opportunities, helping Saudi hospitality operators deliver exceptional experiences tailored to diverse cultural expectations and preferences.

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How Vision 2030 is Transforming Saudi Arabia Hospitality Industry

Saudi Arabia’s Vision 2030 is rapidly transforming the hospitality industry by making tourism a central pillar of economic diversification. Massive investments in luxury hotels, resorts, and entertainment hubs across megaprojects like NEOM, Red Sea Project, and AMAALA are creating world-class, sustainable destinations. Heritage sites such as Diriyah and AlUla are being opened to global tourists, boosting demand for boutique and culturally rich accommodations. Visa reforms, improved air connectivity, and partnerships with global hospitality brands are elevating service quality and expanding tourism beyond pilgrimage to leisure, business, and adventure travel. With targets of 150 million visitors by 2030, Saudi Arabia is accelerating hotel development, digital transformation, and workforce training, positioning the Kingdom as a competitive, sustainable, and culturally authentic global tourism leader.

Saudi Arabia Hospitality Market Trends & Drivers:

The Saudi Arabia hospitality market is experiencing remarkable expansion driven by the increasing arrival of international tourists, promoted through the Kingdom's ambitious Vision 2030 economic diversification agenda and substantial infrastructure investments. The market benefits from growing global recognition as evidenced by a significant increase in European arrivals and visitors from East Asia and the Pacific, reflecting enhanced international connectivity and successful destination marketing efforts. Religious tourism continues as a foundational pillar, with millions of pilgrims visiting Makkah and Madinah annually, many extending their stays to explore additional Saudi destinations and combining spiritual journeys with leisure experiences. The government's strategic investments in luxury resorts, environmentally sustainable accommodations, and heritage site restoration are elevating the Kingdom's hospitality standards and broadening its appeal to diverse traveler segments seeking premium experiences.

The acceleration of cultural and sporting events including Riyadh Season, Formula E races, and major international conferences is creating sustained demand for hotel accommodations and establishing Saudi Arabia as a premier events destination. Modern entertainment complexes, racing circuits like Qiddiya Speed Park, and mega-project developments are attracting both regional and international visitors while generating significant economic activity. Rising disposable incomes among Saudi residents and shifting consumer preferences toward experiential travel are fueling domestic tourism growth, with locals increasingly exploring the Kingdom's heritage sites, natural landscapes, coastal resorts, and urban entertainment districts. The hospitality sector is diversifying through innovative mixed-use developments, wellness centers, adventure tourism offerings, and boutique properties that cater to specialized market niches and elevated guest expectations.

Saudi Arabia Hospitality Market Industry Segmentation:

The report has segmented the market into the following categories:

Type Insights:

• Chain Hotels
• Independent Hotels

Segment Insights:

• Service Apartments
• Budget and Economy Hotels
• Mid and Upper Mid-scale Hotels
• Luxury Hotels

Breakup by Region:

• Northern and Central Region
• Western Region
• Eastern Region
• Southern Region

Competitive Landscape:

The competitive landscape of the industry has also been examined along with the profiles of the key players.

Access the Latest 2026 Data & Forecasts: https://www.imarcgroup.com/checkout?id=16899&method=1315

Recent News and Developments in Saudi Arabia Hospitality Market

• February 2025: A leading hospitality management company announced strategic expansion plans across Saudi Arabia, introducing innovative business-leisure concepts designed to meet the growing demands of corporate travelers and tourists, supporting the Kingdom's Vision 2030 objectives through enhanced accommodation offerings in key business districts and emerging tourism destinations.
• March 2025: Red Sea Global revealed plans for the opening of multiple luxury resorts throughout the year, including world-class properties at Shura Island and the AMAALA wellness destination, featuring championship golf courses, private island experiences, and cutting-edge sustainable tourism infrastructure that positions Saudi Arabia as a premier regenerative tourism hub.
• April 2025: International hotel chains announced significant portfolio expansions in Saudi Arabia, with dozens of new properties planned across luxury, midscale, and economy segments in cities including Riyadh, Jeddah, AlUla, and Dammam, reflecting strong investor confidence in the Kingdom's rapidly growing hospitality sector and its potential to attract millions of additional visitors annually.
• May 2025: Major hospitality developers unveiled ambitious mixed-use projects combining hotels, residences, and entertainment facilities in strategic locations including Diriyah, NEOM, and the Red Sea coast, showcasing innovative architectural designs that blend contemporary luxury with Saudi cultural heritage while incorporating advanced sustainability features and smart building technologies.

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