Foreign tourists visiting Saudi Arabia spent a record SAR 45 billion ($12 billion) on hospitality facilities in 2023.
This accounted for 32% of total tourist spending, the Saudi Ministry of Tourism reported on 14 August.
Saudi Arabia’s tourism sector is experiencing unprecedented growth as the kingdom continues its efforts to diversify its revenue sources beyond oil and the traditional religious Hajj and Umrah pilgrimage tourism. The country is also investing heavily in new technologies to demonstrate its ability to shift away from traditional tourism-led transport systems.
The ministry reported that total spending by foreign visitors last year reached SAR 141 billion, of which SAR 25.5 billion (18%) was spent on shopping.
The tourism component of Saudi Arabia’s balance of payments recorded the largest historical surplus of SAR 48 billion in 2023, driven by strong growth in inbound tourism. The upward trend continued in the first half of 2024, with the number of tourists reaching 60 million and expenditure approaching SAR 150 billion.
Vision 2030
The growth is in line with government initiatives to develop the sector as part of Saudi Arabia’s broader economic diversification strategy in its Vision 2030. The tourism boom comes as the kingdom seeks to establish itself as a global tourist destination by launching ambitious projects and easing visa restrictions to attract international visitors.
According to Anita Mendiratta, Special Advisor to the Secretary General of the United Nations World Tourism Organisation, Saudi Arabia is seven years ahead of its Vision 2030 tourism goals, attracting 106 million visitors and surpassing its target of 100 million tourists.
Saudi Arabia has achieved this both materially through transportation links and immaterially through its hospitable reception of the world.
In 2019, Saudi Arabia launched an e-visa system for travellers from 66 countries, allowing them to explore the kingdom’s vast tourism potential and take part in various activities.
The high prices are aimed squarely at wealthy holidaymakers from the Gulf and wealthy East Asians, who don’t mind that the country’s new resorts are dry locations, as alcohol is currently banned even offshore.
