SAUDI ARABIA – The Ministry of Tourism (formerly the Saudi Commission for Tourism & National Heritage, SCTNH) has revealed five-star hotel occupancy rates in Riyadh peaked at 97% in the recent mid-year school break and overall occupancy averaged above 90% in H1 2024.
In the first half of 2024, Riyadh hosted 8.8 million domestic and 1.3 million international tourists, according to the ministry.
This growth in tourism was largely driven by the Saudi Winter events calendar, Riyadh Season, and several high-profile international conferences, as reported by SPA.
To further enhance the tourism sector, the ministry announced efforts to simplify the licensing of hospitality establishments, aiming to elevate the quality of services for both domestic and international visitors.
Saudi Arabia’s tourism and hospitality sector has experienced significant growth, bolstered by strategic policies under the Vision 2030 framework.
Key initiatives such as the introduction of tourist visas in 2019, investments in luxury projects like Neom and the Red Sea Project, and a focus on diversified tourism offerings have transformed the sector.
These measures have positively influenced hotel performance indicators, including occupancy rates, average daily rates (ADR), and tourist expenditures, which reiterate the growth potential of the sector.
The Kingdom welcomed 109.3 million visitors in 2023, driven by religious tourism and growing leisure tourism.
This surge contributed to a 5.9% year-on-year increase in hotel occupancy rates up to September 2023. ADR also rose by 18.4%, leading to a 31.2% improvement in revenue per available room (RevPAR) across the hospitality sector.
Cities such as Riyadh and Madinah saw notable growth; for example, Madinah recorded a 38.1% increase in ADR and a 60.8% rise in RevPAR during the same period, reflecting heightened demand for premium accommodations and religious events according to CBRE and JLL reports.
The expansion of infrastructure and aviation networks, including Riyadh Air’s new routes, has enhanced accessibility for international tourists.
Strategic partnerships with markets such as China and initiatives simplifying visa processes have further driven visitor numbers. Additionally, mega-events and sports activities have boosted tourism spending, with significant contributions from entertainment, leisure, and cultural experiences.
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