Saudi Arabia Travel & Tourism Market By Product/Service Offering (Ticket Reservation, Hotel Booking, Holiday/Tour Packages, Travel Insurance, Others), By Type (Domestic, Inbound, Outbound), By Purpose of Visit (Business, Leisure & Recreation, Education, Medical, Social Activity, Others), By Tourist Profile (Saudians, Foreign Nationals),By Region, Competition, Forecast & Opportunities, 2020-2030F
Market Overview
Saudi Arabia Travel & Tourism market was valued at USD 53.87 Billion in 2024 and is expected to grow to USD 100.23 Billion by 2030 with a CAGR of 10.90%. The Saudi Arabia Travel & Tourism market is experiencing steady growth, driven by driven by the Kingdom’s Vision 2030 initiative, which aims to diversify the economy and reduce dependency on oil. Major investments in infrastructure, including airports, hotels, entertainment venues, and transportation networks, are enhancing the country’s appeal to both domestic and international tourists. Religious tourism remains a key driver, with millions visiting Mecca and Medina annually for Hajj and Umrah. Also, the promotion of cultural heritage, entertainment, and adventure tourism is attracting a wider demographic. Strategic partnerships, relaxed visa regulations, and global marketing campaigns are further boosting tourist inflow. As the government prioritizes tourism as a pillar of economic development, the sector is poised for sustained expansion and increased contribution to GDP.
Key Market Drivers
Rising Foreign Visit Across the Region
Saudi Arabia's Travel & Tourism sector is witnessing unprecedented growth, significantly driven by a surge in foreign visitors. As a part of this, according to a recent study as of 2024, the Kingdom welcomed a record 30 million international tourists, up from 27.5 million in 2023, marking a substantial increase in global interest. This momentum is part of the broader Vision 2030 strategy, which aims to diversify the economy beyond oil by investing nearly $1 trillion into tourism projects. Key initiatives include the development of luxury resorts, entertainment hubs, and cultural landmarks, enhancing the country's appeal to a diverse range of travelers. The introduction of streamlined visa processes and the expansion of international flight routes have further facilitated this influx. As a result, tourism's contribution to the GDP has seen a notable rise, underscoring its growing significance in the national economy. With continued efforts to enhance infrastructure and promote cultural heritage, Saudi Arabia is poised to solidify its position as a leading global tourist destination.
Key Market Challenges
Extreme Climate Conditions
Extreme climate conditions present a significant challenge to Saudi Arabia's burgeoning Travel & Tourism sector. The Kingdom's arid climate, characterized by soaring temperatures, has been exacerbated by climate change, leading to more frequent and intense heatwaves. For instance, during the 2024 Hajj pilgrimage, temperatures in Mecca soared above 50°C, resulting in over 1,300 deaths, predominantly among unregistered pilgrims lacking access to cooling facilities. Such extreme heat not only endangers the health and safety of tourists but also strains infrastructure and increases operational costs due to heightened demand for cooling and water resources. Also, the necessity to shift tourism activities to cooler months may lead to seasonal imbalances, affecting the sustainability of tourism-dependent businesses. To mitigate these challenges, Saudi Arabia must invest in climate-resilient infrastructure, implement effective heat management strategies, and promote sustainable tourism practices to ensure the sector's long-term viability.
Key Market Trends
Rising Adoption of Flexible Payment Option
The adoption of flexible payment options is rapidly transforming Saudi Arabia's Travel & Tourism sector, aligning with the Kingdom's Vision 2030 goal to achieve 70% non-cash transactions by 2025. A significant contributor to this shift is the Buy Now, Pay Later (BNPL) model, which has gained substantial traction among consumers seeking interest-free installment plans. Local fintech platforms like Tamara and Tabby have partnered with major retailers and e-commerce platforms, facilitating seamless travel bookings and purchases. As a result, the BNPL market in Saudi Arabia is projected to grow from $1.48 billion in 2025 to $2.36 billion by 2030, with a compound annual growth rate (CAGR) of 9.7%. Simultaneously, digital wallets such as STC Pay, Mada Pay, and Apple Pay are experiencing widespread adoption. In March 2025, e-commerce sales via Mada cards surged by 73.4% year-on-year, reaching a record SR27.55 billion ($7.34 billion). This growth is supported by the Saudi Central Bank's initiatives to integrate digital wallets with global platforms like Google Pay, enhancing accessibility and convenience for travelers. These developments indicate a significant shift towards a cashless economy, with consumers increasingly favoring flexible, secure, and convenient payment methods for their travel and tourism expenditures.
Key Market Players
In this report, the Saudi Arabia Travel & Tourism Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:
Company Profiles: Detailed analysis of the major companies presents in the Saudi Arabia Travel & Tourism Market.
Available Customizations:
Saudi Arabia Travel & Tourism Market report with the given market data, TechSci Research offers customizations according to a company's specific needs. The following customization options are available for the report:
Company Information
Saudi Arabia Travel & Tourism market was valued at USD 53.87 Billion in 2024 and is expected to grow to USD 100.23 Billion by 2030 with a CAGR of 10.90%. The Saudi Arabia Travel & Tourism market is experiencing steady growth, driven by driven by the Kingdom’s Vision 2030 initiative, which aims to diversify the economy and reduce dependency on oil. Major investments in infrastructure, including airports, hotels, entertainment venues, and transportation networks, are enhancing the country’s appeal to both domestic and international tourists. Religious tourism remains a key driver, with millions visiting Mecca and Medina annually for Hajj and Umrah. Also, the promotion of cultural heritage, entertainment, and adventure tourism is attracting a wider demographic. Strategic partnerships, relaxed visa regulations, and global marketing campaigns are further boosting tourist inflow. As the government prioritizes tourism as a pillar of economic development, the sector is poised for sustained expansion and increased contribution to GDP.
Key Market Drivers
Rising Foreign Visit Across the Region
Saudi Arabia's Travel & Tourism sector is witnessing unprecedented growth, significantly driven by a surge in foreign visitors. As a part of this, according to a recent study as of 2024, the Kingdom welcomed a record 30 million international tourists, up from 27.5 million in 2023, marking a substantial increase in global interest. This momentum is part of the broader Vision 2030 strategy, which aims to diversify the economy beyond oil by investing nearly $1 trillion into tourism projects. Key initiatives include the development of luxury resorts, entertainment hubs, and cultural landmarks, enhancing the country's appeal to a diverse range of travelers. The introduction of streamlined visa processes and the expansion of international flight routes have further facilitated this influx. As a result, tourism's contribution to the GDP has seen a notable rise, underscoring its growing significance in the national economy. With continued efforts to enhance infrastructure and promote cultural heritage, Saudi Arabia is poised to solidify its position as a leading global tourist destination.
Key Market Challenges
Extreme Climate Conditions
Extreme climate conditions present a significant challenge to Saudi Arabia's burgeoning Travel & Tourism sector. The Kingdom's arid climate, characterized by soaring temperatures, has been exacerbated by climate change, leading to more frequent and intense heatwaves. For instance, during the 2024 Hajj pilgrimage, temperatures in Mecca soared above 50°C, resulting in over 1,300 deaths, predominantly among unregistered pilgrims lacking access to cooling facilities. Such extreme heat not only endangers the health and safety of tourists but also strains infrastructure and increases operational costs due to heightened demand for cooling and water resources. Also, the necessity to shift tourism activities to cooler months may lead to seasonal imbalances, affecting the sustainability of tourism-dependent businesses. To mitigate these challenges, Saudi Arabia must invest in climate-resilient infrastructure, implement effective heat management strategies, and promote sustainable tourism practices to ensure the sector's long-term viability.
Key Market Trends
Rising Adoption of Flexible Payment Option
The adoption of flexible payment options is rapidly transforming Saudi Arabia's Travel & Tourism sector, aligning with the Kingdom's Vision 2030 goal to achieve 70% non-cash transactions by 2025. A significant contributor to this shift is the Buy Now, Pay Later (BNPL) model, which has gained substantial traction among consumers seeking interest-free installment plans. Local fintech platforms like Tamara and Tabby have partnered with major retailers and e-commerce platforms, facilitating seamless travel bookings and purchases. As a result, the BNPL market in Saudi Arabia is projected to grow from $1.48 billion in 2025 to $2.36 billion by 2030, with a compound annual growth rate (CAGR) of 9.7%. Simultaneously, digital wallets such as STC Pay, Mada Pay, and Apple Pay are experiencing widespread adoption. In March 2025, e-commerce sales via Mada cards surged by 73.4% year-on-year, reaching a record SR27.55 billion ($7.34 billion). This growth is supported by the Saudi Central Bank's initiatives to integrate digital wallets with global platforms like Google Pay, enhancing accessibility and convenience for travelers. These developments indicate a significant shift towards a cashless economy, with consumers increasingly favoring flexible, secure, and convenient payment methods for their travel and tourism expenditures.
Key Market Players
- Saudi Telecom Company
- Etihad Airways PJSC
- Al Riyadh Travel and Tourism Company
- Seera Group Holding Co
- Red Sea Global
- SIAD Holding Co
- Sana Tourism
- Zahid Travel Group
- Ace Travel Group
- Rezayat Group
In this report, the Saudi Arabia Travel & Tourism Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:
- Saudi Arabia Travel & Tourism Market, By Product/Service Offering:
- Ticket Reservation
- Hotel Booking
- Holiday/Tour Packages
- Travel Insurance
- Others
- Saudi Arabia Travel & Tourism Market, By Type:
- Domestic
- Inbound
- Outbound
- Saudi Arabia Travel & Tourism Market, By Purpose of Visit:
- Business
- Leisure & Recreation
- Education
- Medical
- Social Activity
- Others
- Saudi Arabia Travel & Tourism Market, By Tourist Profile:
- Saudians
- Foreign Nationals
- Saudi Arabia Travel & Tourism Market, By Region:
- Eastern
- Western
- Northern & Central
- Southern
Company Profiles: Detailed analysis of the major companies presents in the Saudi Arabia Travel & Tourism Market.
Available Customizations:
Saudi Arabia Travel & Tourism Market report with the given market data, TechSci Research offers customizations according to a company's specific needs. The following customization options are available for the report:
Company Information
- Detailed analysis and profiling of additional market players (up to five).
1. INTRODUCTION
1.1. Product Overview
1.2. Key Highlights of the Report
1.3. Market Coverage
1.4. Market Segments Covered
1.5. Research Tenure Considered
2. RESEARCH METHODOLOGY
2.1. Methodology Landscape
2.2. Objective of the Study
2.3. Baseline Methodology
2.4. Formulation of the Scope
2.5. Assumptions and Limitations
2.6. Sources of Research
2.7. Approach for the Market Study
2.8. Methodology Followed for Calculation of Market Size & Market Shares
2.9. Forecasting Methodology
3. EXECUTIVE SUMMARY
3.1. Overview of the Market
3.2. Overview of Key Market Segmentations
3.3. Overview of Key Market Players
3.4. Overview of Key Regions
3.5. Overview of Market Drivers, Challenges, and Trends
4. VOICE OF CUSTOMER
4.1. Brand Awareness
4.2. Factor Influencing Availing Decision
5. SAUDI ARABIA TRAVEL & TOURISM MARKET OUTLOOK
5.1. Market Size & Forecast
5.1.1. By Value
5.2. Market Share & Forecast
5.2.1. By Product/Service Offering (Ticket Reservation, Hotel Booking, Holiday/Tour Packages, Travel Insurance, Others)
5.2.2. By Type (Domestic, Inbound, Outbound)
5.2.3. By Purpose of Visit (Business, Leisure & Recreation, Education, Medical, Social Activity, Others)
5.2.4. By Tourist Profile (Saudians, Foreign Nationals)
5.2.5. By Region
5.2.6. By Company (2024)
5.3. Market Map
6. SAUDI ARABIA TICKET RESERVATION TRAVEL & TOURISM MARKET OUTLOOK
6.1. Market Size & Forecast
6.1.1. By Value
6.2. Market Share & Forecast
6.2.1. By Type
6.2.2. By Purpose of Visit
6.2.3. By Tourist Profile
7. SAUDI ARABIA HOTEL BOOKING TRAVEL & TOURISM MARKET OUTLOOK
7.1. Market Size & Forecast
7.1.1. By Value
7.2. Market Share & Forecast
7.2.1. By Type
7.2.2. By Purpose of Visit
7.2.3. By Tourist Profile
8. SAUDI ARABIA HOLIDAY/TOUR PACKAGES TRAVEL & TOURISM MARKET OUTLOOK
8.1. Market Size & Forecast
8.1.1. By Value
8.2. Market Share & Forecast
8.2.1. By Type
8.2.2. By Purpose of Visit
8.2.3. By Tourist Profile
9. SAUDI ARABIA TRAVEL INSURANCE TRAVEL & TOURISM MARKET OUTLOOK
9.1. Market Size & Forecast
9.1.1. By Value
9.2. Market Share & Forecast
9.2.1. By Type
9.2.2. By Purpose of Visit
9.2.3. By Tourist Profile
10. MARKET DYNAMICS
10.1. Drivers
10.2. Challenges
11. MARKET TRENDS & DEVELOPMENTS
11.1. Merger & Acquisition (If Any)
11.2. Product Launches (If Any)
11.3. Recent Developments
12. PORTERS FIVE FORCES ANALYSIS
12.1. Competition in the Industry
12.2. Potential of New Entrants
12.3. Power of Suppliers
12.4. Power of Customers
12.5. Threat of Substitute Products
13. SAUDI ARABIA ECONOMIC PROFILE
14. POLICY & REGULATORY LANDSCAPE
15. COMPETITIVE LANDSCAPE
15.1. Company Profiles
15.1.1. Saudi Telecom Company
15.1.1.1. Business Overview
15.1.1.2. Company Snapshot
15.1.1.3. Products & Services
15.1.1.4. Financials (As Per Availability)
15.1.1.5. Key Market Focus & Geographical Presence
15.1.1.6. Recent Developments
15.1.1.7. Key Management Personnel
15.1.2. Etihad Airways PJSC
15.1.3. Al Riyadh Travel and Tourism Company
15.1.4. Seera Group Holding Co
15.1.5. Red Sea Global
15.1.6. SIAD Holding Co
15.1.7. Sana Tourism
15.1.8. Zahid Travel Group
15.1.9. Ace Travel Group
15.1.10. Rezayat Group
16. STRATEGIC RECOMMENDATIONS
17. ABOUT US & DISCLAIMER
1.1. Product Overview
1.2. Key Highlights of the Report
1.3. Market Coverage
1.4. Market Segments Covered
1.5. Research Tenure Considered
2. RESEARCH METHODOLOGY
2.1. Methodology Landscape
2.2. Objective of the Study
2.3. Baseline Methodology
2.4. Formulation of the Scope
2.5. Assumptions and Limitations
2.6. Sources of Research
2.7. Approach for the Market Study
2.8. Methodology Followed for Calculation of Market Size & Market Shares
2.9. Forecasting Methodology
3. EXECUTIVE SUMMARY
3.1. Overview of the Market
3.2. Overview of Key Market Segmentations
3.3. Overview of Key Market Players
3.4. Overview of Key Regions
3.5. Overview of Market Drivers, Challenges, and Trends
4. VOICE OF CUSTOMER
4.1. Brand Awareness
4.2. Factor Influencing Availing Decision
5. SAUDI ARABIA TRAVEL & TOURISM MARKET OUTLOOK
5.1. Market Size & Forecast
5.1.1. By Value
5.2. Market Share & Forecast
5.2.1. By Product/Service Offering (Ticket Reservation, Hotel Booking, Holiday/Tour Packages, Travel Insurance, Others)
5.2.2. By Type (Domestic, Inbound, Outbound)
5.2.3. By Purpose of Visit (Business, Leisure & Recreation, Education, Medical, Social Activity, Others)
5.2.4. By Tourist Profile (Saudians, Foreign Nationals)
5.2.5. By Region
5.2.6. By Company (2024)
5.3. Market Map
6. SAUDI ARABIA TICKET RESERVATION TRAVEL & TOURISM MARKET OUTLOOK
6.1. Market Size & Forecast
6.1.1. By Value
6.2. Market Share & Forecast
6.2.1. By Type
6.2.2. By Purpose of Visit
6.2.3. By Tourist Profile
7. SAUDI ARABIA HOTEL BOOKING TRAVEL & TOURISM MARKET OUTLOOK
7.1. Market Size & Forecast
7.1.1. By Value
7.2. Market Share & Forecast
7.2.1. By Type
7.2.2. By Purpose of Visit
7.2.3. By Tourist Profile
8. SAUDI ARABIA HOLIDAY/TOUR PACKAGES TRAVEL & TOURISM MARKET OUTLOOK
8.1. Market Size & Forecast
8.1.1. By Value
8.2. Market Share & Forecast
8.2.1. By Type
8.2.2. By Purpose of Visit
8.2.3. By Tourist Profile
9. SAUDI ARABIA TRAVEL INSURANCE TRAVEL & TOURISM MARKET OUTLOOK
9.1. Market Size & Forecast
9.1.1. By Value
9.2. Market Share & Forecast
9.2.1. By Type
9.2.2. By Purpose of Visit
9.2.3. By Tourist Profile
10. MARKET DYNAMICS
10.1. Drivers
10.2. Challenges
11. MARKET TRENDS & DEVELOPMENTS
11.1. Merger & Acquisition (If Any)
11.2. Product Launches (If Any)
11.3. Recent Developments
12. PORTERS FIVE FORCES ANALYSIS
12.1. Competition in the Industry
12.2. Potential of New Entrants
12.3. Power of Suppliers
12.4. Power of Customers
12.5. Threat of Substitute Products
13. SAUDI ARABIA ECONOMIC PROFILE
14. POLICY & REGULATORY LANDSCAPE
15. COMPETITIVE LANDSCAPE
15.1. Company Profiles
15.1.1. Saudi Telecom Company
15.1.1.1. Business Overview
15.1.1.2. Company Snapshot
15.1.1.3. Products & Services
15.1.1.4. Financials (As Per Availability)
15.1.1.5. Key Market Focus & Geographical Presence
15.1.1.6. Recent Developments
15.1.1.7. Key Management Personnel
15.1.2. Etihad Airways PJSC
15.1.3. Al Riyadh Travel and Tourism Company
15.1.4. Seera Group Holding Co
15.1.5. Red Sea Global
15.1.6. SIAD Holding Co
15.1.7. Sana Tourism
15.1.8. Zahid Travel Group
15.1.9. Ace Travel Group
15.1.10. Rezayat Group
16. STRATEGIC RECOMMENDATIONS
17. ABOUT US & DISCLAIMER
