Saudi tourism facilities expand 18% as hospitality supply grows

05/10/2026 04:09 AST

Saudi Arabia's licensed tourism hospitality facilities rose 17.9 percent in the second quarter as the Kingdom continued to expand accommodation capacity, even as hotel occupancy and room rates declined.

The number of licensed facilities reached 6,278 in the quarter, up from 5,326 a year earlier, according to the General Authority for Statistics. Serviced apartments and other hospitality facilities accounted for 3,258 establishments, or 51.9 percent of the total, while hotels numbered 3,020.

Strengthening the hospitality sector is a key part of Saudi Arabia's Vision 2030 economic diversification drive as the Kingdom develops its tourism industry. The Kingdom surpassed its original target of 100 million annual tourists in 2023, seven years ahead of schedule, and has since raised its 2030 target to 150 million domestic and inbound tourists.

In its latest report, GASTAT stated: "The supply of licensed rooms continued to expand significantly, with the number of licensed hotel rooms increasing by 13.2 percent, while the number of rooms in serviced apartments and other hospitality facilities increased by 19.7 percent, compared to the same period in 2025."

The number of tourism establishments with employees reached 179,507 in the second quarter, an 8.7 percent increase from 165,167 a year earlier, according to GASTAT.

Employment in tourism activities rose 7.2 percent to about 1.07 million. Saudi employees numbered 258,043, or 24.1 percent of the total, while non-Saudi employees reached 811,077, or 75.9 percent.

Occupancy eases
Saudi Arabia's hotel room occupancy rate stood at 51 percent in the second quarter, down 2.2 percentage points from 53.2 percent a year earlier.

Occupancy in serviced apartments and other hospitality facilities fell to 46.5 percent, down 3.7 percentage points from 50.2 percent in the second quarter of 2025.

The average daily room rate at hotels was about SR563 ($150.40), down 12.4 percent from SR643 in the same quarter of 2025. The rate for serviced apartments and other hospitality facilities was SR197, down 2.1 percent from SR201.

The average length of stay for hotel guests was about 5 nights, up 3.3 percent from 4.8 nights a year earlier. In serviced apartments and other hospitality facilities, the average stay was about 2 nights, nearly unchanged from the corresponding quarter of 2025.

Arab News