Saudi Arabia is rapidly transforming its economy, and tourism has become a central pillar in this transition. As part of its Vision 2030 initiative, the kingdom is positioning itself as a global tourism and investment hub. According to Al-Eqtisadiah, foreign tourist spending reached an all-time high in 2024, signaling both growing international interest and the effectiveness of recent policy reforms.
Record Tourist Spending Fuels Sector Growth
In 2024, international visitors spent a total of 153.6 billion riyals (approximately $41 billion) in Saudi Arabia. This represents a 14% increase compared to the previous year, with particularly strong performance in the second half of the year. From July to December alone, foreign spending rose by 23%, contributing an additional 61 billion riyals to the annual total.
This growth reflects a range of structural changes and strategic investments. Over the past two years, Saudi Arabia has expanded access to electronic visas, introduced extensive promotional campaigns abroad, and launched high-profile tourism projects. These efforts have significantly enhanced the kingdom’s attractiveness to international travelers, including those from markets previously underrepresented in Saudi Arabia’s inbound tourism figures.
Strategic Projects and Global Marketing Drive Demand
The kingdom’s focus on tourism is supported by a massive financial commitment. Minister of Tourism Ahmed Al-Khatib has confirmed that over $500 billion is being invested into developing new tourism destinations across the country. Among the flagship initiatives are the Red Sea Project and the transformation of the country’s western coastline into a luxury tourism corridor.
In parallel, Saudi Arabia has increased its participation in global travel exhibitions and events, showcasing its cultural heritage, natural landscapes, and modern infrastructure. These efforts aim to reposition the kingdom as a leading destination not only in the Middle East, but also on the global stage.
Government-led events, international festivals, and sporting competitions have further contributed to this momentum. By integrating tourism with entertainment, culture, and sports, Saudi Arabia is diversifying its appeal and targeting a wide range of visitor segments.
Employment and Domestic Economic Impact
The growth of the tourism sector is also having a measurable impact on the domestic economy. Tourism-related industries—including retail, hospitality, restaurants, and leisure—grew by 8% in 2024, adjusted for inflation. These sectors now account for a significant share of national employment.
According to available data, over 2.5 million people are employed in these industries, which represent approximately 20% of the total workforce in the country. Notably, 22% of these jobs are held by Saudi nationals, underscoring the sector’s contribution to local employment and workforce development.
This employment dynamic aligns with the goals of Vision 2030, which aims to create job opportunities for Saudi citizens in sectors beyond oil and government services. The tourism industry, with its high labor intensity and potential for service-sector growth, is playing a central role in this transition.
Improvement in the Travel Account Balance
The rise in foreign tourist spending has also had a positive impact on Saudi Arabia’s external financial position. For the first time in years, the travel account within the balance of payments posted a significant surplus in 2024.
In the third quarter alone, the travel balance recorded a surplus of nearly 50 billion riyals, reflecting an 8% increase over the same period in 2023. This occurred despite a 17% increase in outbound travel spending by Saudi citizens, highlighting the net improvement in tourism-related trade flows.
This marks a reversal of the trend seen before 2018, when outbound tourism consistently outweighed inbound flows, leading to a negative travel balance. The recent surplus indicates a structural shift driven by both rising foreign visitor numbers and higher spending per visitor.
Long-Term Projections and Strategic Goals
Looking ahead, the outlook for Saudi Arabia’s tourism sector remains highly optimistic. According to estimates from the World Travel and Tourism Council (WTTC), the sector is expected to contribute 500 billion riyals to national GDP by the end of 2024. In addition, more than 158,000 new jobs are projected to be created within the same year.
By 2034, the sector’s GDP contribution is forecast to reach 840 billion riyals, equivalent to 16% of the national economy. These projections are in line with Vision 2030’s target of attracting 150 million visitors annually by the end of the decade.
Such long-term forecasts underscore the importance of continued investment and institutional reform. Saudi Arabia is not only building tourism infrastructure but also creating a comprehensive regulatory framework to support sustainable sector growth. This includes workforce training, environmental protection, and digital services for travelers.
Tourism as a Catalyst for Broader Transformation
Saudi Arabia’s focus on tourism illustrates how strategic planning and financial commitment can drive rapid economic transformation. The sector is becoming a model for other non-oil industries seeking to diversify revenue sources and create employment.
Tourism is also playing a role in shaping the country’s international image, with more open visa policies, cultural diplomacy, and soft power initiatives. As Saudi Arabia continues to host international events and attract global attention, tourism is likely to remain a key driver of both economic and social change.
The rapid expansion of the tourism sector demonstrates the potential of Vision 2030 to produce concrete results across multiple economic dimensions. If current trends continue, Saudi Arabia is set to become not just a regional leader, but a major global player in the travel and tourism industry.
