Saudi Arabia Tourism Industry Expansion "Hospitality Sector White Paper”

The Hospitality Investor White Paper document outlines ambitious investment opportunities, regulatory reforms, and infrastructure developments designed to attract private-sector participation and diversify the economy.

Saudi Arabia’s tourism sector is expanding rapidly, creating potential opportunities for U.S. businesses, driven by unprecedented economic growth and government support. The country achieved over 100 million tourist arrivals in 2023, with combined domestic and international tourism spending reaching US$68 billion. The government aims to increase tourism’s direct GDP contribution from 4.4% to 10% by 2030. International arrivals grew by 56% compared to 2019, leading G20 destinations in growth. The Saudi government is actively encouraging participation in the tourism sector through initiatives such as the Tourism Investment Enabler Program (TIEP) launched in March 2024, which streamlines the licensing process for operating tourism-related businesses to just 5 days. Additional support includes the cancellation of municipality licensing fees and the Tourism Development Fund, which has provided over US$2 billion in support. The e-visa program, now covering 66 countries, has significantly improved access for visitors in turn contributing greater opportunity for new business.

This momentum is supported by substantial infrastructure development, including 275 projects with 67,614 rooms currently in the construction pipeline and plans to expand total hotel capacity to 500,000 rooms by 2030. The sector shows strong growth potential, with international brand share in hotels projected to increase from 47% to 65%. Major global hotel chains are expanding their presence, with giga-projects representing 73% of the hotel supply pipeline. The new King Salman International Airport development, set to handle 120 million passengers annually, along with giga-projects like NEOM, Red Sea Project, and AlUla, further strengthen the investment landscape.

Saudi Arabia’s rapidly expanding tourism sector offers U.S. businesses significant opportunities in hotel development, management, and related services. For more information, please contact Shariq Iqbal, Commercial Specialist at Shariq.Iqbal@trade.gov