Riyadh: Saudi Arabia is accelerating its tourism expansion plans with the addition of approximately 94,500 new hotel rooms currently under construction or in advanced planning stages, as the Kingdom witnesses a significant surge in travel demand.
This large-scale hospitality expansion is part of Saudi Arabia’s ambitious Vision 2030 strategy, which aims to diversify the economy and position the country as a leading global tourism destination. With record-breaking visitor numbers and rising international interest, the demand for accommodation has grown rapidly across major cities and emerging destinations.
Industry reports indicate that Saudi Arabia welcomed over 122 million domestic and international tourists in 2025, reflecting strong growth momentum and putting the Kingdom firmly on track to achieve its target of 150 million visitors annually by 2030.
The expansion is being driven by both public and private sector investments, including giga-projects such as the Red Sea Project, NEOM, and AlUla, alongside increased development of urban hotels in cities like Riyadh, Jeddah, Makkah, and Madinah. These developments are not only enhancing capacity but also elevating the overall quality and diversity of hospitality offerings.
Luxury tourism continues to be a key focus, but Saudi Arabia is also strategically expanding mid-scale and affordable accommodation to cater to a broader segment of travellers. This shift reflects the Kingdom’s evolving tourism strategy, which aims to attract leisure tourists, business travellers, and religious pilgrims alike.
In addition to infrastructure growth, Saudi Arabia is investing heavily in tourism experiences, including cultural, heritage, entertainment, and wellness tourism. Recent initiatives highlight a strong emphasis on sustainability, digital transformation, and personalised travel experiences—key trends shaping the global travel industry.
Experts believe that the rapid expansion of hotel inventory will play a critical role in supporting Saudi Arabia’s tourism ambitions, enabling the country to accommodate rising visitor volumes while maintaining high service standards.
However, industry stakeholders also highlight the importance of balanced development, workforce readiness, and sustainable practices to ensure long-term success.
As Saudi Arabia continues its transformation journey, the hospitality sector is emerging as a cornerstone of its tourism economy—creating new opportunities for global investors, operators, and travel trade partners.
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