Saudi Arabia’s tourism sector has continued its rapid growth, driving record demand for hotels and hospitality services and creating new jobs across the Kingdom.
The Saudi General Authority for Statistics (GASTAT) reported that hotel occupancy rose 2.1% year-on-year in the first quarter of 2025, reaching nearly 63%. In contrast, serviced apartments saw occupancy dip to about 50.7%, reflecting shifting visitor preferences and price dynamics.
Talal Al-Muhaideb, General Manager of Al-Sarh Travel and Tourism, said his company recorded a 28% jump in bookings, including hotels, flights, and tours, compared with the same period last year. He attributed the surge to Saudi Arabia’s rising profile as a destination, improved infrastructure, and more sophisticated tourism offerings.
He noted that Gulf and Asian travelers drove much of the demand, with bookings concentrated in hotels rather than serviced apartments. “Visitors are coming for leisure, cultural experiences, business, and major events,” he underlined.
Al-Muhaideb added that Saudis now make up 48% of management roles at the company, with plans underway to increase local hiring in line with Vision 2030 targets. “We have an ambitious strategy to expand recruitment and empower Saudi talent across all departments,” he explained.
Tourism specialist Abdullah Al-Suqabi stressed the importance of training partnerships with institutes specializing in hospitality and hotel management to further develop Saudi staff. “Skill development is essential to strengthening the sector and boosting local employment,” he said.
Technology is also reshaping the industry. Faisal Al-Otaibi, an investor in the Jathir Inn rental platform, noted that the app has seen rising demand thanks to secure payment systems and transparent pricing. “Bookings have climbed significantly, and the growth has directly increased my revenues,” he said, adding that travelers now arrive year-round from across the country.
Average daily hotel rates slipped to 477 riyals ($127), down 3.4%, while serviced apartment rates rose 7.2% to 209 riyals ($55). The figures suggest changing demand patterns and possibly a more diverse customer base.
Guest stays in hotels held steady at 4.1 nights, while serviced apartment stays declined to an average of 2.1 nights.
Overall, the tourism sector recorded 4.1% employment growth in the first quarter, with Saudis representing nearly 25% of the workforce - totaling 234,000 Saudi employees working across nearly a thousand tourism businesses.
