OECD Tourism Trends and Policies 2024

Saudi Arabia

Tourism in the economy and outlook 

Tourism is one of Saudi Arabia’s fastest growing sectors and is seen as essential in the country’s economic diversification, employment, and sustainable development. In 2022, tourism was estimated to have directly contributed 3.4% to the country’s GDP, almost matching the 3.6% share recorded in 2019. Preliminary estimates for 2023 indicate this share to be between 4.0% and 4.4%, exceeding 2019 levels. The number of direct tourism jobs reached 925 000 in 2023, comprising 5.8% of total employees in the Saudi economy, up 62% from 2019 levels.

In 2023, inbound tourism reached a peak of 27.4 million international tourist arrivals, a 65% rise compared to 2022, and a 56% increase compared to 2019. This surge resulted in inbound tourism receipts amounting to SAR 141.2 billion, reflecting a corresponding 44% increase from 2022 and 37% from 2019. Leisure tourism emerged as one of the primary drivers of inbound tourism growth, witnessing a substantial increase from 1.1 million tourists in 2019 to 2.5 million in 2022, and further escalating to 6.2 million tourists in 2023.

Domestic tourism also demonstrated significant growth, recording 81.9 million overnight domestic tourists in 2023, representing a 5% increase over 2022 and 71% over 2019. This surge in domestic tourism generated revenues totalling SAR 114.4 billion, surpassing figures from 2022 and 2019, by 7% and 87% respectively.

Saudi Arabia welcomed more than 100 million inbound and domestic tourists in 2023, seven years ahead of the initial timeline set by Saudi Vision 2030, representing significant growth compared to pre pandemic levels. This has spurred Saudi Arabia to adjust its earlier goal with a more ambitious target of hosting 150 million tourists by 2030.

Tourism governance 

The Ministry of Tourism is responsible for defining tourism policy and regulating the tourism sector in Saudi Arabia, and focuses on strategy, regulations, destination development, human capital development, and investment attraction.

The Ministry co-ordinates with other government entities on tourism policy development through several mechanisms, including memorandums of understanding, joint committees and regular meetings with other ministries. The Ministry also engages with the private sector on tourism policy development through several mechanisms, including public-private partnerships, tourism councils and industry surveys. 

The Ministry is supported by the Saudi Tourism Authority, in charge of branding, marketing and promotional efforts with different travel agencies and tour operators. The Tourism Development Fund is in charge of funding iconic projects and supporting the private sector to develop offerings and accommodations. The General Commission for Tourism and National Heritage is responsible for developing and preserving Saudi Arabia's cultural heritage.

The tourism policy ecosystem works closely with all the relevant government entities, such as the Ministry of Foreign Affairs, Ministry of Interior, Ministry of Transport, Ministry of Electricity, Water and Agriculture, through a government body called the Tourism Development Committee, where major cross-governmental initiatives are discussed and monitored.

Governance has also been put in place to manage the development of the tourism sector through the Regional Tourism Development Committee, which gathers provincial administration, regional development entities, the different entities in charge of developing sites and destinations, and professional associations.

Regional development authorities play a crucial role in developing and promoting tourism destinations. They are responsible for ensuring that the necessary infrastructure and services are in place to support the industry. The Royal Commission for Al-Ula is tasked with developing the Al-Ula region as a world-class tourist destination, while the Madinah Development Authority launched a project to enhance the tourism experience for visitors by redesigning and upgrading major streets and public realm areas of the city.

Saudi Arabia: Organisational chart of tourism bodies

Source: OECD, adapted from Ministry of Tourism, 2024.

Tourism policies and programmes

Since the Vision 2030 strategy was launched, the Kingdom of Saudi Arabia has taken a wide range of steps to strengthen the role of the tourism sector as a driver of local economic growth. In 2019, the government announced the National Tourism Strategy, under the banner of Vision 2030. Tourism contributes to three of the key Vision 2030 objectives:

• Strengthen Islamic and national identity by facilitating hosting of more than 37 million Hajj and Umrah visitors and enrich their experience.

• Support the diversification efforts of the economy by increasing the contribution of the private sector and attracting Foreign Direct Investment, to reach 2030 targets of 10% contribution to GDP and creating 1.6 million jobs.

• Enhance government effectiveness through unlocking the potential of the non-oil sector.

To measure progress, three-year action plans have been implemented. The first three-year action plan ran from 2019-22 to address the complex and dynamic development of the tourism sector and identify key gaps. Over the years, the tourism sector has matured, and the National Tourism Strategy has become a platform for regulation and policy reforms to set up the tourism sector in the Kingdom of Saudi Arabia.

Phase 2 of the Strategy will be implemented from 2024-26, aiming to strengthen the Kingdom of Saudi Arabia's position as a leading tourism destination. While Phase 2 is under development, a number of policy and programmes have been continued or implemented, including:

• Regulating the use of technology in the Saudi tourism sector. This includes regulating the use of online travel platforms, and ensuring that tourists have access to accurate and reliable information about tourism products and services. 

• Promoting tourism investment through developing new investment incentives, and making it easier for foreign investors to do business in Saudi Arabia. 

• Developing tourism giga projects, including Neom, Red Sea, Qiddiya and Diriyah.

• Protecting the environment and cultural heritage through developing new regulations to govern tourism activities in sensitive areas, and supporting the restoration and preservation of cultural heritage sites. 

• Establishing the Tourism Development Fund in 2020 to provide financial support for tourism projects. With a SAR 160 billion (USD 43 billion) budget over a ten-year period, the fund finances projects that have an important economic impact and focus on long-term sustainability. 

• Establishing the Sustainable Tourism Global Centre (STGC) which focuses on renewable energy alternatives and developing innovative methods to curtail food and water waste.

The Ministry of Tourism issued the Tourism Law, which provides a comprehensive framework for the development and regulation of the tourism sector. The law covers a wide range of topics, including tourism licensing, tourism products and services, and the rights and obligations of tourists (see box below).

A new tourism law in Saudi Arabia

In 2022, the Ministry of Tourism implemented a new policy reform to regulate all tourism activities, including Online Travel Agencies and tour guides. This reform aims to ensure that all tourism activities have regulatory coverage and enhance the management and oversight of the tourism industry.  

The new tourism law is a key driver for achieving Vision 2030’s goals. It aims to better organise the tourism sector and improve the quality of services in the country. The new tourism law contains provisions to address the current situation such as licensing provisions, financial fees, licensee obligations, inspection details and the sanctions. In addition, the law also ensures that any tourism activities that may develop in the future are included through a partnership with The Sandbox. 

The new tourism law has been developed to be more flexible, in line with international best practices, attracting local and foreign investment in the tourism sector to Saudi Arabia. The new law includes penalties for anyone who violates its provisions.

Statistical Profile

Saudi Arabia: Domestic, inbound and outbound tourism

	2018	2019	2020	2021	2022
TOURISM FLOWS, THOUSAND
Domestic tourism
Total domestic trips	46 512	53 074	48 399	108 129	125 817
Overnight visitors (tourists)	43 255	47 805	42 107	63 834	77 837
Same-day visitors (excursionists)	3 256	5 269	6 292	44 295	47 980
Nights in all types of accommodation	232 122	268 751	228 538	353 331	369 606
Hotels and similar establishments	140 452	155 540	121 909	161 334	205 161
Other collective establishments	9 034	7 874	4 900	6 057	5 022
Private accommodation	82 637	105 337	101 730	185 940	159 424
Inbound tourism
Total international arrivals	17 570	20 292	4 882	3 869	18 256
Overnight visitors (tourists)	15 334	17 526	4 138	3 477	16 638
Same-day visitors (excursionists)	2 236	2 767	744	392	1 618
Top markets
Bahrain	574	511	100	240	2 178
Kuwait	1 993	2 132	629	623	1 948
Egypt	800	1 100	432	308	1 463
Pakistan	2 177	2 211	483	258	1 407
Indonesia	1 375	1 429	293	11	1 228
Nights in all types of accommodation	173 929	189 036	37 824	31 771	270 728
Hotels and similar establishments	153 005	164 526	30 447	16 081	153 744
Other collective establishments	5 298	1 011	119	210	8 043
Private accommodation	15 626	23 499	7 258	15 480	108 941
Outbound tourism
Total international departures	27 425	27 196	6 657	10 682	24 264
Overnight visitors (tourists)	19 751	19 010	4 839	8 415	16 882
Same-day visitors (excursionists)	7 674	8 186	1 819	2 266	7 381
Top destinations
Bahrain	3 957	3 907	588	1 282	2 931
UAE	3 262	3 125	792	1 189	2 644
Egypt	2 459	2 352	751	1 366	2 076
Kuwait	2 498	2 447	567	887	1 952
Jordan	1 462	1 417	336	713	1 579
TOURISM RECEIPTS AND EXPENDITURE, MILLION USD
Inbound tourism
Total international receipts	16 974	19 849	4 646	4 639	26 517
International travel receipts	13 790	16 431	4 036	3 817	23 475
International passenger transport receipts	3 184	3 418	610	822	3 042
Outbound tourism
Total international expenditure	17 939	16 415	9 379	13 130	18 662
International travel expenditure	16 651	15 140	8 843	12 176	15 914
International passenger transport expenditure	1 288	1 275	536	954	2 748

.. Not available

Source: OECD Tourism Statistics (Database).

Statlink

Saudi Arabia: Enterprises and employment in tourism

	Number of establishments1	Number of persons employed
	2022	2018	2019	2020	2021	2022
Total	..	..	..	..	..	..
Tourism industries	121 779	552 556	571 152	683 178	762 957	880 140
Accommodation services for visitors	12 451	118 941	124 676	94 660	98 492	110 095
Hotels and similar establishments	..	..	..	..	..	..
Food and beverage serving industry	88 938	298 487	306 508	455 168	520 643	608 722
Passenger transport	2 832	69 855	72 441	50 875	45 282	44 124
Air passenger transport	94	28 232	29 547	21 578	20 106	18 118
Railways passenger transport	4	1 655	1 716	2 298	282	14
Road passenger transport	2 560	39 669	40 860	26 253	23 823	24 896
Water passenger transport	174	299	319	746	1 071	1 096
Passenger transport supporting services	..	..	..	..	..	..
Transport equipment rental	968	21 084	21 868	11 897	13 447	16 030
Travel agencies and other reservation services industry	2 071	25 560	26 327	14 793	15 771	19 892
Cultural industry	406	2 256	2 339	3 029	4 710	4 699
Sports and recreation industry	1 515	13 359	13 843	8 544	10 046	11 323
Retail trade of country-specific tourism characteristic goods	11 170	..	..	36 979	43 877	52 576
Other country-specific tourism industries	1 432	3 014	3 150	7 233	10 689	12 679
Other industries	..	..	..	..	..	..

.. Not available

1. Data refer to number of enterprises.

Source: OECD Tourism Statistics (Database).

Statlink

Saudi Arabia: Internal tourism consumption

Million SAR

	2022
	Domestic tourism expenditure	Inbound tourism expenditure	Internal tourism consumption
Total	..	..	..
Consumption products	137 175	103 515	250 252
Tourism characteristic products	101 918	70 695	172 612
Accommodation services for visitors	27 230	28 323	55 554
Food and beverage serving services	40 134	18 151	58 285
Passenger transport services	23 095	17 818	40 912
Air passenger transport services	16 490	11 565	28 054
Railways passenger transport services	332	240	573
Road passenger transport services	6 229	6 013	12 243
Water passenger transport services	43	0	43
Passenger transport supporting services	..	..	0
Transport equipment rental services	3 990	120	4 110
Travel agencies and other reservation services industry	1 284	3 136	4 419
Cultural services	2 474	944	3 418
Sports and recreation services	3 711	2 203	5 914
Country-specific tourism characteristic goods	..	..
Country-specific tourism characteristic services	..	..
Other consumption products	35 257	32 820	77 640
Tourism connected products	..	..	..
Non-tourism related consumption products	..	..	..
Non-consumption products	..	..	..

.. Not available

Source: OECD Tourism Statistics (Database).

Statlink