Saudi Hospitality Sector to Grow by 7.5% Annually Until 2028
Saudi Arabia's hospitality sector is poised to grow by 7.5% annually from 2023 to 2028 due to government initiatives and tourism boosts under Vision 2030. The broader GCC hospitality market will see similar growth, driven by major cultural and sporting events, and infrastructure enhancements. Despite challenges, significant investments in technology and sustainable practices are expected to attract more tourists.
Saudi Arabia's hospitality sector is expected to grow at a compound annual rate of 7.5% from 2023 to 2028, driven by government initiatives under Vision 2030.
Notable projects include infrastructure upgrades and easier tourist visa rules.
Alpen Capital’s report reveals that the broader Gulf Cooperation Council (GCC) hospitality market will also see similar growth, with UAE's sector projected to grow at a CAGR of 6.9%.
Other GCC countries like Qatar, Kuwait, Oman, and Bahrain are set for even higher growth rates.
The region is focusing on hosting major cultural and sporting events, enhancing infrastructure, and adopting digitalization and eco-friendly practices to attract more tourists.
Despite potential challenges like global economic uncertainties and a skilled labor shortage, the sector is investing in technology and sustainable tourism.
Knight Frank predicts that Saudi Arabia will add 320,000 new hotel rooms by 2030, mainly in upscale and luxury categories, to cater to an anticipated 150 million tourists by that year.
Notable projects include infrastructure upgrades and easier tourist visa rules.
Alpen Capital’s report reveals that the broader Gulf Cooperation Council (GCC) hospitality market will also see similar growth, with UAE's sector projected to grow at a CAGR of 6.9%.
Other GCC countries like Qatar, Kuwait, Oman, and Bahrain are set for even higher growth rates.
The region is focusing on hosting major cultural and sporting events, enhancing infrastructure, and adopting digitalization and eco-friendly practices to attract more tourists.
Despite potential challenges like global economic uncertainties and a skilled labor shortage, the sector is investing in technology and sustainable tourism.
Knight Frank predicts that Saudi Arabia will add 320,000 new hotel rooms by 2030, mainly in upscale and luxury categories, to cater to an anticipated 150 million tourists by that year.
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