Saudi Arabia has announced its intention to increase the number of hotel rooms by 320,000 by 2030 to accommodate the growing tourism industry, aligning with its Vision 2030 goals.
Meeting this target will require a total investment of $104 billion, with $70 billion allocated towards constructing 221,000 hotel rooms in the Holy Cities of Makkah and Madinah to cater to the increasing number of religious tourists.
The expansion plan primarily focuses on enhancing the quality of hospitality with a particular emphasis on the luxury and upscale categories, as the country expects to welcome approximately 150 million visitors by 2030.
Saudi Arabia's Growing Hospitality Industry
A report by global property consultancy Knight Frank reveals Saudi Arabia's ambitious tourism growth plan. This extensive expansion aims to cater to the projected surge in domestic and international tourists, expected to reach 150 million by 2030.
The Kingdom's hospitality sector has already demonstrated impressive growth. By the end of 2023, it welcomed nearly 100 million tourists, contributing to almost 6% of the GDP. This trend indicates that the sector is on track to achieve the government's target of contributing 10% to the economy by 2030.
Rising Demand for Luxury Accommodation
The report also shows that 66% of new hotel room supply will fall into the 'luxury,' 'upper upscale,' and 'upscale' categories. This suggests that Saudi Arabia focuses on elevating the hospitality landscape by offering high-end accommodations to its tourists.
By 2030, the market segment for luxury accommodation is expected to expand further, encompassing 251,500 hotel rooms. This growth is consistent with the government's goal to attract international travelers and enhance the country's global standing as a top tourism destination.
The Investment Required for Expansion
To meet the increasing demand for hotel accommodations, significant investments are required. Knight Frank's report estimates that approximately $104 billion will be needed to execute the expansion plan.
A substantial part of this cost - $70 billion - will be allocated to construct 221,000 hotel rooms in the Holy Cities of Makkah and Madinah. These cities are the country's major religious tourism hubs, attracting millions of pilgrims annually.
The Holy Cities: A Religious Tourism Destination
The Holy Cities of Makkah and Medinah hold a special place in the heart of the Muslim community worldwide. Under the Vision 2030 strategy, an estimated 221,000 new hotel rooms are planned across these two cities.
This initiative caters to the expected surge in religious tourism. The government anticipates that 30 million religious tourists will visit the holy cities annually by 2025, projected to rise to 50 million visitors by 2030.
Upcoming Planned Hotel Projects in Holy Cities
Rua Al Madinah
Crown Prince Mohammed bin Salman launched the Rua Al Madinah project in August 2022. It covers 1.5 million square meters and dedicates 63 percent of its space to open and green areas.
This ambitious project will provide 47,000 hotel rooms and is projected to contribute SAR140 million ($37.3 million) to the Kingdom's gross domestic product upon completion.
Additionally, it is expected to generate 93,000 job opportunities directly and indirectly from the construction and development phase until 2030.
The project's goal is to redefine the standards of hospitality, offering luxurious hotels, the best restaurants in Madinah, and various entertainment options. This project will set a new benchmark for excellence in the industry.
Planned Hotels in Rua Al Madinah
Accor Hotels
The world's leading hospitality company, Accor, has revealed that it will open three properties in the latest project by Rua Al Madinah Holding Company in Madinah, Saudi Arabia. The properties include:
- 142-key Fairmont hotel
- 120-key Fairmont Branded Residences
- 466-key Swissôtel and a 328-key Novotel
- Marriott Hotels
Rua Al Madinah Holding and Marriott International have partnered to oversee 8 hotels within the master plan.
This joint venture is projected to increase the number of rooms by approximately 4,400 and generate 4,100 employment opportunities in Rua Al Madinah, the second holiest city in the Islamic world.
The eight planned properties include:
- The Ritz-Carlton, Rua Al Madinah with 151 keys
- JW Marriott Rua Al Madinah with 252 keys
- Madinah Marriott Hotel Rua Al Madinah with 450 keys
- Le Méridien Rua Al Madinah with 533 keys
- The Westin Rua Al Madinah with 361 keys
- Four Points by Sheraton Rua Al Madinah with 777 key
- Aloft Rua Al Madinah and Courtyard by Marriott Rua Al Madinah with a combined 1,810 keys.
Masar Makkah
Masar Destination, situated in the heart of Makkah, is a modern integrated investment ecosystem that offers various flexible opportunities.
Its strategic location, only 550 meters from the Holy Mosque and 100 meters from the Haramain Station, makes it a prime development with a total of 24,000 rooms.
These hotels have the capacity to accommodate a large number of visitors, catering to the constantly growing tourism industry in the city.
The main attraction of this project is the Residential Towers, which exemplify the ambitious vision of Masar Destination. In September 2023, Umm Al-Qura announced a partnership with Scope Properties to build Residential Towers in Makkah, with a projected cost of $240 million (SAR 900 million).
Jabal Omar Development
The Jabal Omar Development Project,an 8 Billion SAR project, is a one-of-a-kind project that aims to revitalize the city's urban landscape by providing luxurious accommodations and easier access to religious and commercial facilities for both visitors and residents of the holy city of Makkah Al-Mukarramah.
By 2030, Jabal Omar Development Company aims to operate 15 hotels covering 230,000 square meters, all offering a direct view of the Al Masjid Al Haram. This ensures guests have both convenience and a spiritually enriching experience.
Jumeirah Jabal Omar Hotel
The Jumeirah Jabal Omar Hotel, the first hotel in Saudi Arabia from the Dubai-based Jumeirah Hotel group, has been officially announced open in the Holy City of Makkah.
Situated in the second phase of the Jabal Omar development, the hotel is centrally located near the Grand Mosque, Al Masjid Al Haram.
With over 1000 rooms and suites, some with direct views of the haram, the hotel aims to provide exceptional experiences for pilgrims during their Hajj and Umrah pilgrimages.
Address Hotel Jabal Omar’s Sky Musallah
The Address Jabal Omar Makkah, a 5-star hotel, provides a luxurious stay and a variety of amenities in the center of Makkah.
Located only 1640 feet from Masjid Al Haram, guests can enjoy a fitness center, private parking, a shared lounge, and a restaurant during their stay at Address Jabal Omar Makkah,
The Address Hotel in Jabal Omar Makkah has also unveiled its Sky Musallah, the highest prayer room in the world, on a sky bridge.
This impressive prayer room stands at a remarkable 483 meters above sea level and has been recognized by the Guinness World Records. The Sky Musallah provides breathtaking panoramic views of Al Masjid Al Haram, The Holy Kaaba, and Makkah City.
This sky bridge links the two twin towers of The Address Jabal Omar Hotel, stretching from the 36th to 38th floors, and has a maximum capacity of 520 people. It is an extraordinary observation point for guests staying at this iconic and conveniently located hotel in Makkah.
Renowned Hotels in Jabal Omar Makkah
- Jabal Omar Hyatt Regency Makkah Hotel
- Hilton Suites Makkah Hotel
- Conrad Makkah
- Hilton Makkah Convention Hotel
- DoubleTree by Hilton Makkah Jabal Omar Hotel
- Jabal Omar Marriott Hotel Makkah
Voco Makkah
In order to cater to the requirements of religious pilgrims during the Hajj and Umrah periods, IHG Hotels & Resorts has introduced its luxurious Voco brand in the city of Makkah. Voco Makkah is the third Voco hotel in Saudi Arabia and the largest one worldwide, comprising 4,321 rooms.
Thakker Makkah City
The $7 billion Thakher project has assembled a team of highly skilled urban planners and designers to transform the Holy City's rugged hills into a welcoming and diverse destination that can accommodate 30 million Umrah performers and six million pilgrims by 2030.
Spanning 320,000 square meters and located only 1km from Masjid al-Haram in Makkah, the completed Thakher Makkah will feature roughly 100 land plots designated for various purposes such as hotels, residences, commercial spaces, and service-related establishments.
The development of Thakher Makkah will include a variety of top-rated international hotels, including the Radisson Hotel, Park Inn by Radisson, and the Novotel Hotel. The project will also provide 10,000 car parking spaces and a mosque with a capacity of 5,000 for prayers.
Luxury Hotels in NEOM and Red Sea Giga Projects
Saudi Arabia's NEOM and Red Sea Giga Project are paving the way for new upcoming luxury hotels, promising unparalleled hospitality in the region.
New planned NEOM hotels includes:
- The Luxury Collection Sindalah Island
- The Autograph Collection Sindalah Island
- Four Seasons Sindalah Island
- W Hotel Trojena
- JW Marriott Hotel Trojena
- Anantara Resort Trojena
- 25-Hours Trojena
- Morgans Originals Trojena
- The Chedi Trojena
- Raffles Trojena
- YOTEL Oxagon
- Hotel Indigo Oxagon
- Kerten Hospitality
New Red Sea hotels announced includes:
The newly opened Six Senses Southern Dunes
The newly opened St. Regis Red Sea Resort
- The newly opened Nujuma, a Ritz-Carlton Reserve
- Sheybarah Resort
- Shebara Hotel Red Sea
- Desert Rock Resort
- Miraval The Red Sea
- Rosewood Red Sea
- Fairmont The Red Sea
- Grand Hyatt The Red Sea
- InterContinental Resort Red Sea
- Jumeirah The Red Sea
- The Red Sea Edition
- Faena The Red Sea
- SLS The Red Sea
- Four Seasons at AMAALA Triple Bay
- Rosewood Amaala
- Clinique La Prairie Health Resort
- Jayasom Wellness Resort
- Six Senses Amaala
Equinox Resort Amaala
New Luxury Hotels Planned for Diriyah
Diriyah, a $63 Billion Giga project, located outside Riyadh, will feature 38 hotels upon completion, transforming it into the city's premier luxury hospitality destination and a cherished heritage site.
- Ritz-Carlton hotel
- Marriott’s The Luxury Collection
- Anantara
- Corinthia
- EDITION
- Faena
- The Chedi
- Hyatt Place
- Montage Hotels & Resorts
- Moxy
- 1 Hotels
- Pendry Hotels & Resorts
- Radisson RED
- Taj
- The Langham
- Treehouse Hotels
- Waldorf Astoria
- Well Health Retreat
- Armani Hotel
- Four Seasons
- Park Hyatt
- Raffles
- Address Hotels + Resorts
- Baccarat Hotels & Resorts
- Campbell Gray Hotels and Resorts
- Orient Express
- Rosewood
- Oberoi
- Six Senses
Entertainment and Events to Boost Tourism
In addition to expanding hospitality, Saudi Arabia is also developing cultural and entertainment offerings nationwide.
The Kingdom's winning bid to host World Expo 2030 in Riyadh is expected to draw 40 million visitors during the six-month event, injecting $94.6 billion into the Saudi economy.
In line with this strategy, there are various entertainment events, including the First UFC Event, the 5 Vs 5 Riyadh Season Bout, the World's First WWE Experience in Boulevard City, and many other Entertainment Seasons.
Noteworthy additions include theme parks such as Dragon Balls Theme Park in Qiddiya, which will join two dozen other parks licensed by the Saudi General Entertainment Authority over the past year.
This rapid expansion in the hospitality sector underscores the need to provide adequate accommodation for hotel staff.
More Planned Entertainment Projects in Saudi Arabia
The Qiddiya City Project
Qiddiya City has been awarded contracts worth over $2.6 billion for its development. Qiddiya City project aims to establish a Global Entertainment and Sports Hub in Saudi Arabia.
Situated on the outskirts of Riyadh, Qiddiya City is anticipated to comprise 60,000 structures, such as golf courses, stadiums, and the Six Flags Qiddiya Theme Park.
Its objective is to draw 40 million tourists annually and contribute $36 billion to the country's GDP. The city aims to attract approximately 48 million visitors annually, with a dedicated gaming and e-sports district that will serve as a major global competition hub.
Dragon Balls Theme Park
Saudi Arabia has announced plans to construct a groundbreaking Dragon Balls Themed Park in the Qiddiya Entertainment City.
The park, spanning 500,000 square meters, will feature seven distinct zones and an array of 30 themed attractions, including a towering 70-meter dragon roller coaster as its main focal point.
Guests can also anticipate Dragon Ball-inspired hotels and restaurants, paying homage to the beloved Japanese anime franchise.
This project, situated only 40 km from Riyadh, is a key component of the overall development at Qiddiya City, with the goal of establishing Saudi Arabia as a premier international hub for entertainment.
Qiddiya Speed Park Track
The Qiddiyah Investment Company has recently announced the addition of a new attraction, the Speed Park Track, to their upcoming project, Qiddiya City.
This new venue is set to become the main hub for Motorsport in Saudi Arabia and a renowned destination for Motorsport enthusiasts worldwide.
The design of the racetrack has been collaborated on by professional race drivers, with the expertise of former Austrian Formula One driver Alex Wurz. \
The track will consist of 21 turns and boasts an incredible elevation of 108 meters per lap, taking advantage of Qiddiya's scenic mountain terrain.
In addition to this, drivers will also have the opportunity to race alongside the tallest rollercoaster in the world at the neighboring Six Flags Qiddiya City, as well as a water theme park.
THE RIG
Saudi Arabia has announced the establishment of THE RIG, a revolutionary amusement park inspired by oil rigs.
The park will be situated 40 kilometers away from the eastern shoreline of Saudi Arabia.
Taking inspiration from the nation's abundant oil and gas history, the theme park is set to include 3 hotels, 11 restaurants, helipads, a diving center, and an extreme sports adventure park.
The Oil Park Development Company is leading the development of this project, which is being financed by the Public Development Fund with an estimated cost of $5 billion.
Seven’s Entertainment Destination
Saudi Entertainment Ventures Seven announced its plans to construct an entertainment complex in Al Madinah worth 1.3 Billion Riyals.
This upcoming development aims to be a center for enjoyment, excitement, and high-quality attractions to improve the quality of life for the residents.
The project will span over 100,000 square meters, with a built-up area of 84,000 square meters. The park will also include picturesque walkways that seamlessly connect with the planned open paths and gardens within the destination.
A Global Tourism Hub
Saudi Arabia's ambitious plan to add 320,000 new hotel rooms by 2030 highlights the nation's commitment to becoming a global tourism hub.
The extensive expansion in the hospitality sector, coupled with the development of entertainment and cultural offerings, is set to attract millions of tourists from across the globe.
The nation is poised to establish itself as a leading destination for regional and international tourists, contributing significantly to its economy and achieving its Vision 2030 goals.
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