Saudi Plans for 320,000 New Hotel Rooms by 2030 To Meet Surging Tourism Demand
Saudi Arabia plans to expand its hospitality sector by building 320,000 new hotel rooms to cater to surging tourism demand by 2030, a new report by property consultancy Knight Frank revealed.
Currently, 66 percent of existing hotel supply in the kingdom falls into the “luxury, upper upscale, and upscale” categories, the firm said. However, this market segment will expand even further to make up 72 percent – equivalent to 251,500 hotel rooms.
“With a target of welcoming 150 million visitors by 2030—a 50 percent increase from its previous goal—the government is actively exploring various strategies to attract international travellers,” said Turab Saleem, Partner and Head of Hospitality, Tourism, and Leisure Advisory, MEA, at Knight Frank.
These strategies include various cultural and entertainment offerings across the country that complement existing attractions such as the Jeddah F1 Grand Prix, Entertainment Seasons, and several theme parks, she added.
Tourism spending during the first half of 2023 rose 132 percent to SAR87 billion compared to 2022. Concurrently, international visitor numbers increased to 14.6 million arrivals (142 percent increase).
Key to this growth has been a massive influx of visitors from Muslim-majority countries. The kingdom welcomed 2.2 million visitors from Bahrain, 1.9 million from Kuwait, and 1.5 million from Egypt.
Hosting the 2030 World Expo is anticipated to deliver a major financial increase of more than $94 billion to Saudi Arabia’s economy, as Riyadh will welcome an expected 40 million visitors across the six-month showcase event.
