Business

Foreign Tourist Spending in Saudi Arabia Reach $13.2 Billion in Q1-25

Saudi Arabia’s Ministry of Tourism said that the Kingdom has witnessed a sharp rise in inbound visitor spending in the first quarter of 2025, with international tourists spending $13.2 billion, up 9.7% from the same period last year.

Driven by a surge in tourism activity and government-led initiatives to diversify the economy beyond oil, the Kingdom also posted a surplus of $7.14 billion in its travel account balance, marking an 11.7% y-o-y increase, underlining the sector’s growing contribution to the country’s non-oil economy, according to the data released by the Saudi Central Bank SAMA’s balance of payments for May.

It also indicated the success of Saudi Arabia’s broader tourism strategy under Vision 2030, which aims to position the Kingdom as a global travel destination.

Saudi Arabia’s Tourism Minister Ahmed Al-Khateeb, commenting on the sector’s performance following the release of the Ministry of Tourism’s 2024 Annual Statistical Report in June, said that the document showcased the sector’s remarkable growth and its role in enabling Saudi Vision 2030, a record performance achieved with the support and guidance of the Kingdom’s visionary leadership.

According to media reports, the rapid growth highlights the effectiveness of reforms across the tourism ecosystem, including improved services, upgraded infrastructure, and enhanced collaboration between public and private stakeholders to meet Vision 2030 targets.

E-visas Widen Access

Market watchers said that the government initiatives launched in recent years have started yielding results, as evidenced by rising international arrivals and spending.

Speaking to Arabic daily Asharq Al-Awsat, tourism investor and businessman Majed Al-Hokair said that Saudi Arabia’s recent achievements underscore its growing appeal to international visitors.

He credited the introduction of e-visas for travellers from across the globe significantly boosted the arrivals, allowing visitors to explore the country’s diverse offerings — from historical and cultural sites to leisure and beach destinations.

Al-Hokair added that Saudi Arabia’s tourism appeal spans all seasons, drawing visitors for entertainment, heritage, business travel, and conferences, all of which have generated new job opportunities for Saudis in the sector.

Legal Reforms Boost Tourism

Nasser Al-Ghilan, founder and CEO of Amla Tourism Investment, said that the regulatory changes have also played a key role in attracting foreign tourists and driving up domestic tourism spending in the first quarter of this year.

He said that several new tourism and entertainment projects launched under Vision 2030 helped the Kingdom surpass its goal of 100 million visitors in 2023, with new targets now set at 150 million annual visitors by the end of the decade.

The SAMA report also said that in 2024, Saudi Arabia posted a record $13.3 billion surplus in its travel account, a 7.8% increase over 2023, driven by a 13.8% jump in international visitor spending. Inbound tourism spending rose to $40.9 billion in 2024, compared with $36 billion the previous year, reflecting the Kingdom’s growing status as a global travel hub.

Global Business Magazine

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