Saudi Arabia Is Building a Tourism Economy—But Success Depends on Execution
Saudi Arabia is working quickly to make tourism a major part of its economy. From luxury islands to modern smart cities, the country is investing heavily in new tourism projects. It is also changing visa rules and expanding its airline network to attract more visitors. These steps are helping Saudi Arabia improve its global image. However, while progress is clear, the real challenge is delivering these projects successfully as the country tries to reduce its dependence on oil.
Tourism as a Growing Economic Sector
Tourism is becoming more important to Saudi Arabia’s economy. Tourism Minister Ahmed Al-Khateeb recently said the sector is expected to contribute 10% of the country’s GDP by 2030. This is a big rise from 5% in 2025 and just 3% in 2019.
Today, tourism adds about $80 billion to the economy. The government aims to double this to $160 billion by 2030. Jobs in tourism have also increased. The sector now employs more than one million people, compared to around 750,000 before. Many private companies are also hiring more Saudi workers.
International visitor numbers have grown quickly. In 2019, Saudi Arabia welcomed only five million international tourists. By 2025, that number has risen to more than 30 million. The goal is to reach 50 million international visitors each year by 2030, which would place Saudi Arabia among the top five tourist destinations in the world. Overall tourist numbers, including domestic travel, are expected to reach 100 million by 2030.
Strong Growth in Domestic Tourism
Domestic tourism has played a key role in this growth. Many Saudis are now choosing to travel within their own country. Experts say that local tourism has grown very fast, partly because it started from a low base. In fact, Saudi Arabia has already passed its earlier target of 80 million total visitors set for 2030.
International tourism is also growing, but it may take more time to reach full momentum. In the past, Saudi Arabia mainly attracted visitors for religious reasons, such as Hajj and Umrah. Now, the country is opening up to leisure, cultural, and entertainment tourism. However, many of the new tourism options are still focused on the luxury market. Over time, more affordable options are expected, which will help attract a wider range of visitors.
Mega-Projects Transform the Tourism Map
Large projects are central to Saudi Arabia’s tourism strategy, especially along the Red Sea coast.
One major project is Red Sea Project. This massive development covers more than 28,000 square kilometres along the northwest coast. It includes luxury resorts built across more than 90 islands. The first phase is estimated to cost between $7.5 billion and $7.7 billion. The project focuses on eco-tourism and will operate entirely on renewable energy.
Another key development is NEOM, a futuristic city in northwest Saudi Arabia. Within NEOM, projects such as THE LINE aim to house up to nine million people in a high-tech urban space where services are within walking distance. Other parts include Oxagon and Trojena, which will offer outdoor activities, including skiing.
In addition, Sindalah Island has opened as a high-end marine destination. These projects are helping Saudi Arabia position itself as a modern and unique travel destination.
Visa Reforms Support Growth
Visa changes have also boosted tourism. Saudi Arabia has expanded its e-visa programme to more than 60 countries. It has introduced five-year multiple-entry tourist visas and made it easier for foreign investors to participate in tourism projects. These steps have reduced travel barriers and encouraged hotel development and private investment.
There are also discussions about a unified GCC visa, which would allow easier travel between Gulf countries. If introduced, it could further increase visitor numbers.
Challenges Remain
Despite strong progress, challenges remain. Saudi Arabia must train more workers to meet international hospitality standards. The country also faces extreme summer heat, which may limit tourism during some months. Additionally, many people still see Saudi Arabia mainly as a religious destination.
Competition is another factor. Countries like United Arab Emirates, Oman, and Qatar already have strong tourism industries.
For Saudi Arabia to succeed, it must focus on strong execution. Infrastructure, service quality, and workforce training must match the country’s high ambitions. The transformation has started, but the coming years will decide whether tourism can truly become as important to Saudi Arabia’s economy as oil.
Published: 19th February 2026
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