Foreign tourists visiting Saudi Arabia spent a record SAR 45bn ($12bn) on hospitality facilities in 2023, accounting for 32% of total tourist expenditure, the Saudi Ministry of Tourism reported on August 14.

Saudi Arabia's tourism sector has been experiencing unprecedented growth as the kingdom continues its efforts to diversify income sources beyond oil and traditional religious tourism of the Hajj and Umrah pilgrimages. The country is also investing heavily in new technologies to show off its ability to diversify away from regular tourism-led transport systems. 

The ministry disclosed that foreign visitors' total spending reached SAR141bn last year, with SAR25.5bn (18%) allocated to shopping.

Transportation and travel expenses amounted to SAR21.5bn (15.2%), while food and beverage spending totalled SAR19.4bn. Expenditure on other purposes exceeded SAR25.5bn, and entertainment spending reached SAR4bn.

According to the Al Eqtesadieh, the travel component of Saudi Arabia's balance of payments recorded its largest historical surplus of SAR48bn in 2023, driven by the significant increase in inbound tourism.

The upward trend continued into the first half of 2024, with the number of tourists reaching 60 million and spending approaching SAR150bn.

This growth aligns with government initiatives to develop the sector as part of Saudi Arabia's broader economic diversification strategy in its Vision 2030.

The tourism boom comes as the kingdom seeks to establish itself as a global travel destination, launching ambitious projects and easing visa restrictions to attract international visitors.

Industry observers note that these figures reflect the success of Saudi Arabia's efforts to boost its tourism sector, which is a key pillar of its Vision 2030 plan to reduce dependence on oil revenues.

Saudi Arabia has outpaced its Vision 2030 tourism goals by seven years, attracting 106mn visitors and surpassing its target of 100 million tourists, according to Anita Mendiratta, Special Advisor to the Secretary General of the United Nations World Tourism Organization, speaking previously with Bloomberg.

"Saudi Arabia has achieved this both materially through transportation links and immaterially through its hospitable reception of the world," Arabic language media quoted her as saying.

In 2019, Saudi Arabia launched an e-visa system for tourists from 66 countries, allowing them to explore the kingdom's vast tourism potential and participate in various events.

Since the launch of Vision 2030, Riyadh has invested in software and human capital development, aiming to offer visitors global standards with a Saudi flair.

Aviation is also a key part of Saudi Arabia's strategy to attract tourists, leveraging the country's central geographical location between East and West. The recently announced "Riyadh Air" aims to draw 100 million visitors by 2030.

Earlier in May, Saudi Arabia unveiled its latest uber-luxurious resort destination called Nujuma, local blog Nemnna reported.

The Ritz-Carlton Reserve has opened on a remote island in the Red Sea, with nightly rates starting at SAR9,900 (around $2,630), effectively making it one of the most expensive and exclusive destinations on the planet giving resorts like Dubai a run for their money.

The high prices are directly targeted at the wealthy Gulf vacationers and wealthy East Asians, who are open to the country’s new resorts being dry locations, as alcohol is still banned even offshore currently.