In the first quarter of 2024, the Kingdom of Saudi Arabia saw a 22.9 percent increase in inbound visitor spending compared to the same period in 2023. The total spending by inbound visitors exceeded SAR45 billion ($12 billion). Additionally, the Kingdom recorded a travel account surplus of SAR24 billion ($6.39 billion), a growth of over 46 percent year-over-year.
Outbound traveler spending
During this period, outbound travelers from the Kingdom spent an estimated SAR21 billion ($5.59 billion), as per preliminary data from the Saudi Ministry of Tourism.
The Kingdom reached another achievement in inbound visitor spending during the first quarter of 2024. According to the travel account data from the balance of payments, visitors to the kingdom spent +45 billion riyals, leading to 46% growth in the surplus of the travel account… pic.twitter.com/Q5tq1yU1vu
— وزارة السياحة (@Saudi_MT) July 2, 2024
Global tourism leadership
The growth in inbound visitor spending is part of the continuous successes achieved by the Kingdom’s tourism sector. In 2023, Saudi Arabia ranked first globally in terms of the growth rate of international tourists and tourism revenues compared to 2019, according to the United Nations tourism list.
Driving sector growth
This achievement reflects the effective efforts made by the tourism system in Saudi Arabia to drive global leadership in the sector. This includes applying best practices in tourism development and improving tourism services and products, as well as ongoing collaboration with government entities to support the growth of the tourism industry.
Contribution to national economy
The progress in the tourism sector not only enhances the industry itself but also significantly contributes to the growth of the national economy, as part of the National Tourism Strategy framework.
Hospitality sector poised for strong growth
According to new data, Saudi Arabia’s hospitality revenue is expected to see a compound annual growth rate of 7.5 percent from 2023 to 2028, driven by government-led initiatives,
This growth, in line with the Gulf Cooperation Council (GCC) average, is supported by various projects under the Kingdom’s Vision 2030 plan, as stated by the investment banking advisory firm Alpen Capital‘s latest report.
Saudi Arabia announces $800 billion tourism investment
Sameena Ahmed, managing director at Alpen Capital, commented on Saudi Arabia’s hospitality industry, stating: “Growth of the sector is expected to be spurred by economic recovery, thriving tourism and concerted efforts of the governments to reduce reliance on hydrocarbon revenues.”
In May 2024, Ahmed Al Khateeb, Saudi minister of Tourism and chairman of the executive council of the UN Tourism, announced that Saudi Arabia is investing $800 billion to establish tourism projects and destinations.
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