Saudi hotel occupancy rises to 63% in Q1 2025
The occupancy rate for serviced apartments and other hospitality facilities fell to 50.7 percent during the same period, marking a decline of 3.8 percentage points compared to the first quarter of 2024, according to recent data from the General Authority for Statistics.
GASTAT's tourism establishments statistics also showed that the average daily room rate in hotels stood at SR477 ($127.2), reflecting a year-on-year decrease of 3.4 percent. Meanwhile, the average daily rate in serviced apartments and other hospitality facilities increased by 7.2 percent to SR209 during the same period.
The Kingdom has set ambitious tourism targets under its Vision 2030 agenda, aiming to attract 150 million visitors annually by the end of the decade.
#GASTAT publishes Tourism Establishment Statistics for Q1 2025
— الهيئة العامة للإحصاء (@Stats_Saudi) July 3, 2025
Tourism is central to the nation's broader strategy to diversify its economy beyond oil and is positioned as a vital contributor to the gross domestic product. To drive this transformation, Saudi Arabia plans to invest over $1 trillion in new attractions and infrastructure projects, including the Red Sea initiative and NEOM, a $500 billion megacity.
According to GASTAT, the average length of stay for hotel guests was approximately 4.1 nights during the first quarter of 2025, consistent with the same period in 2024.
'On the other hand, the average length of stay for guests in serviced apartments and other hospitality facilities was approximately 2.1 nights during Q1 of 2025, reflecting a decrease of 4.5 percent compared to the corresponding quarter of 2024, which was 2.2 nights,' the analysis added.
Regarding employment in the tourism sector, GASTAT reported notable growth, with the total number of workers in tourism-related activities reaching 983,253 during the first quarter of 2025, up 4.1 percent from the same period last year.
'The number of Saudi employees reached 243,369, with a participation rate of 24.8 percent. Meanwhile, the number of non-Saudi employees reached 739,884, representing a participation rate of 75.2 percent of the total employees in tourism activities,' the report said.
The study further indicated that, in terms of gender distribution, male employees in tourism activities totaled 853,852, accounting for 86.8 percent of the workforce, while female employees numbered 129,401, representing 13.2 percent during the first quarter of 2025.
It also revealed that workers in the tourism sector constituted 5.4 percent of total national employment, marking a decline of 0.3 percentage points compared to the first quarter of 2024. Within the private sector, tourism accounted for 8.1 percent of jobs, a decrease of 0.6 percentage points from 8.7 percent in the same quarter of the previous year.
Highlighting its calculation methodology, GASTAT said the tourism establishments statistics for Q1 2025 are compiled from multiple sources to provide comprehensive insights into tourism activities in Saudi Arabia. These sources include administrative records, statistical surveys, and secondary data.
The Kingdom's tourism sector continued to demonstrate strong performance in the first quarter of 2025, reflecting the country's accelerating efforts under its Vision 2030 agenda to diversify the economy and reduce reliance on oil revenues.
As the nation expands its hospitality infrastructure and boosts its global appeal, recent data reveals promising trends in visitor spending, hotel occupancy, and employment within the tourism industry.
In the first three months of 2025, international tourists spent SR49.37 billion in the Kingdom, a 10 percent increase compared to the same period last year, according to figures released by the Saudi Central Bank, also known as SAMA.
This rise contributed to boosting the travel account surplus to SR26.78 billion, marking an 11.7 percent year-on-year increase and underscoring tourism's growing contribution to the non-oil economy.
Saudi Arabia's hotel sector recorded a solid performance in the first quarter of 2025, supported by a steady rise in both domestic and international tourism, according to the latest report by global real estate consultancy JLL.
The report showed that the Kingdom welcomed approximately 21.6 million international tourists in the first nine months of 2024, while domestic travel surged to 63.9 million, with leisure being the primary motivator for trips.
It added that religious pilgrimage continued to drive international arrivals, reinforcing the country's unique position as a spiritual destination.
The JLL study said that while the nationwide hotel market saw growth in key performance metrics, such as a 10.8 percent increase in average daily rates and a 1.3 percentage point rise in occupancy, performance diverged across cities.
JLL noted that Makkah and Madinah posted robust gains, while Riyadh experienced declines in both occupancy and room rates. Jeddah, meanwhile, showed mixed results.
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