Saudi Domestic Tourism Spending Soars 18% in Q3: What’s Driving the Growth?
A powerful shift is unfolding within Saudi Arabia’s tourism landscape. New figures reveal that domestic tourism spending soared to SR105 billion ($28 billion) by the end of the third quarter of 2025, an impressive 18% increase compared to the same period last year. This growth underscores a vibrant movement of exploration within the Kingdom, where citizens and residents are increasingly discovering the diverse experiences in their own backyard.
Deputy Minister of Tourism Princess Haifa bint Mohammed highlighted this milestone during the recent Budget Forum 2026, affirming that tourism remains a cornerstone of the nation’s economic diversification strategy. While international arrivals are also rising—with notable increases from Europe and Asia-Pacific—the sustained vigor of domestic travel provides a stable, long-term foundation for the sector’s expansion.
A Landscape Transformed: Accessibility and Variety
Several key factors are fueling this domestic boom. Perhaps most striking is the explosive growth in private accommodation options. The number of licensed rural lodges and private hospitality homes has surged by an astonishing 1,250% year-on-year, with over 31,000 licenses now issued. This proliferation offers travelers authentic, localized stays beyond traditional hotels, catering to a growing desire for unique and culturally immersive experiences across the Kingdom’s regions.
Empowering Private Sector Growth
The government’s focused empowerment of the private sector is clearly yielding results. More than 5,700 new tourism licenses have been issued this year, reflecting 40% growth and strong investor confidence. Strategic initiatives, such as the launch of a unified data platform, provide transparent, real-time market insights, enabling smarter investment and development. Streamlined digital services further ensure that establishing and operating tourism businesses is faster and more efficient than ever.
Building on a Record-Breaking Momentum
This domestic surge builds upon an already historic year for Saudi tourism. The Kingdom welcomed nearly 30 million international visitors in 2024, an 8% annual increase, who spent SR168.5 billion. Combined with robust domestic expenditure, total tourism spending has reached SR275 billion, illustrating the sector’s substantial and growing contribution to the national economy.
Looking Ahead: Sustaining the Momentum
Princess Haifa emphasized that these achievements mark a progression, not an endpoint. The consistent year-on-year growth targets reflect a long-term, strategic vision. As infrastructure expands, unique destinations are developed, and travel culture deepens among residents, the domestic tourism market is poised for continued strength.
Ultimately, this 18% surge is more than a statistic—it is a testament to a nation rediscovering its own heritage, natural beauty, and modern attractions. It signals the successful cultivation of a resilient tourism economy, powered significantly by the curiosity and spending of its own people, ensuring sustainable growth for years to come.
Also Read:
The Yearly Inflation Rate in Dubai Declines to its Lowest Level in 14 Months
COP16: Saudi Arabia Calls on the Private Sector to Close the Funding Gap For Land Restoration
