Katching Up on the Expansion of the Hospitality and Tourism Industry in Saudi Arabia

1st March, 2025 | Digital, Food and Beverage, Hospitality

by - Beth Laverty

Backed by the government’s Vision 2030 initiative, Saudi Arabia’s hospitality industry is set to welcome 100 million visitors per year over the next decade with growing demands for bleisure, hyper-personalisation, digitalisation, sustainability, health, and wellness

From the bustling streets of Riyadh to the idyllic beaches of Jeddah, Saudi Arabia’s hospitality industry is undergoing a dramatic makeover welcoming a new generation of dynamic guests both local and international. The modern traveller brings with them a unique set of preferences, which the industry is readily adapting to, including a growing demand for personalised experiences and eco-conscious properties. What’s more, in accordance with the booming hospitality industry, the restaurant scene is about to reach new heights to accommodate the new influx of hungry tourists.

Backed by government-led initiatives such as Vision 2030, the Kingdom plans to invest over USD 550 billion in new travel destinations in the coming six years, making it the world’s largest investor in tourism in its efforts to grow its tourist and hospitality sectors. As the fastest-growing travel destination in the world according to G20, the hospitality sector is gearing up to welcome millions of visitors with a whopping eighty hotel projects anticipated to be finished by the end of the year, including properties by Rotana Hotels and Resorts, Anantara Resorts, Banyan Tree Hotels and Resorts, and so much more.

Bleisure Boom: Merging Work and Play in Saudi Arabia

One of the most recent trends in the Saudi hospitality market is the concept of ‘bleisure’, a combination of business and leisure. In light of the recent pandemic, the lines between work and play have been blurred with many workers choosing to continue working remotely giving rise to the newest craze. Professionals now seek ways to merge their business obligations with leisure experiences making the most of their time by incorporating moments of relaxation and exploration to their business trips.

Wellness Stays: The New Travel Trend

Another industry development is the growing demand for health and wellness-centred stays which reflects global trends. Nowadays, guests are looking for more than just a pleasant stay, they want to leave the chaos of everyday life behind and step into a world of total relaxation and rejuvenation. This is a welcomed transformation with international wellness tourists spending 35% more on average compared to traditional leisure tourists.

Tech-Savvy Stays: The Future of Saudi Hospitality

Hyper-personalised guest experiences are more popular than ever with an emphasis on digital and contactless services including online check-ins, voice control, and even biometrics. Saudi Arabia’s latest developments in the hospitality industry reflect the contemporary guest’s need for a seamless tech-powered experience that caters to their individual needs. Robots are also expected to become more common in the industry with YOTEL’s ROBO Hotel set to open its doors in Oxagon in 2025, featuring everything from smart beds to a robotic concierge.

Sustainable Stays: Eco-Friendly Travel Takes Off

Another crucial aspect of the modern guest experience is the importance of eco-friendly properties, with Booking.com revealing that over 53% of travellers want to travel more sustainably in the future. The recent boom of environmentally conscious travellers aligns perfectly with Saudi Arabia’s sustainable vision including that of the giga-project NEOM, worth USD 500 billion, which will run on 100% renewable energy.

Tasty Trends: Saudi Arabia’s Dining Revolution

Naturally, the Kingdom’s rapidly expanding hospitality and tourism industry is set to have a knock-on effect on the food and beverage industry with the food service market predicted to more than double from $14.16 billion in 2022 to $30.47 billion in 2029. Restaurants will welcome the tourist boom by offering a diverse range of dining options and experiences to satisfy an international customer base and of course, all the classics.

As the sands of Saudi Arabia’s hospitality industry shift and settle, it’s evident that a new era of travel is dawning. With rapid developments in sustainability, technology, and a new demographic of dynamic visitors combined with its rich tapestry of vibrant culture, the possibilities of the Kingdom’s hospitality and tourism industry are limitless and there’s no telling what the future will hold.

For more related updates and to Katch us covering similar topics, watch this space!

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