Tourist spending in Saudi Arabia Up 23% to $12 Billion

Saudi Arabia has experienced a significant increase in tourist spending in the first quarter of 2024.

Inbound visitor spending went up by 22.9 percent to SAR 45 billion (USD 12 billion). This was according to a media release by the Saudi Press Agency. This increase refers to the spending of foreign tourists visiting the country.

On top of the increased tourist spending, there was also a surplus in the travel category amounting to SAR 24 billion. This exhibited an increase of 46 percent versus the same period in 2023.

The Saudi Central Bank (SAMA) also reported that in Q1, outbound travelers from Saudi Arabia spent approximately SAR 21 billion. This was based on the central bank’s travel account in its balance of payments.

Increased tourist spending, growth in revenue

The success of the Saudi Ministry of Tourism is the main driving force behind this spike in tourist spending.

Saudi Arabia ranked first on the United Nations’ list of countries with growth in the number of international tourists. This list also considered the growth in tourism revenue in 2023 versus that in 2019.

In 2024, the United Nations recognized Saudi Arabia for surpassing its 2030 target of 100 million visitors in 2023 alone. This was seven years ahead of schedule.

The kingdom has since increased its 2030 target to 150 million annual visitors by 2030. This was following the Saudi Minister of Tourism Ahmed Al-Khateeb’s announcement at the 2023 Future Investment Initiative event.

The increase in Saudi tourist spending also recognizes the Saudi tourism sector’s efforts in enhancing services and products for tourists, made possible by working hand-in-hand with concerned government agencies.

The “Visiting Investor” electronic visa is one such new offering approved by the Ministry of Investment and Foreign Affairs. The visiting investor e-visa aims to attract foreign investors to push the Saudi economy. It is valid for one year and permits multiple entries for visa holders. In June 2023, Saudi Arabia also announced the issuance of its new instant e-visa for eligible nationalities. This includes an e-visa for tourists, those visiting family or friends, pr those on official business.

All these achievements and offerings in the tourism sector support the overall growth of Saudi Arabia’s economy as outlined by Saudi’s National Tourism Strategy.

Global tourism recovery

The increase in Saudi Arabia’s tourist spending is only the beginning of the global shift in tourism.

According to World Economic Forum (WEF) research released in May 2024, the number of inbound international tourists and the global travel sector’s contribution to the world’s global domestic product are expected to go back to pre-pandemic levels.

The Middle East leads the world’s region in terms of tourism recovery efforts, with Saudi Arabia having displayed the greatest improvement. According to the WEF’s Travel & Tourism Development Index 2024, the kingdom went up from its ranking of 50^th place in 2019 to 41^st place in 2024.

This is primarily driven by a growth in travel demand, boosted further by increased flights worldwide and investments in cultural and tourist attractions.

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