Saudi Arabia recorded SAR82.7 billion in tourism expenditure during the first quarter of 2026, as total visitor numbers reached 37.2 million, up 8 per cent on the same period last year, according to new research from Cavendish Maxwell released at the Future Hospitality Summit Saudi Arabia in Riyadh.
The headline growth masked a split between domestic and international travellers. Domestic tourists rose 16 per cent to nearly 29 million, accounting for 78 per cent of all arrivals. Inbound visitors, by contrast, fell 13 per cent to 8.3 million.
Despite representing just a fifth of all visitors, overseas travellers generated nearly 60 per cent of total spend: SAR48 billion against SAR34.7 billion from the domestic market. Their total expenditure was down 7 per cent, a smaller decline than the 13 per cent drop in arrivals, suggesting average spend per inbound visitor increased year-on-year.
Hotel occupancy nationally opened the year at close to 75 per cent in January before settling at 63 per cent year-to-date by May, down 1.3 per cent on 2025. Makkah outperformed the national average, reaching nearly 84 per cent in January and 73 per cent year-to-date by May, a 12 per cent increase on the prior year. Madinah opened at almost 85 per cent in January, with a cumulative rate of 76 per cent by May, though that was 3 per cent below 2025 levels.
The average daily rate nationally stood at SAR662 in January, up almost 5 per cent on January 2025, climbing to SAR825 year-to-date by May, 12 per cent higher than the prior year. City-level performance diverged: Makkah’s ADR grew 24 per cent to SAR918, Madinah’s rose 5.7 per cent to SAR878, while Riyadh fell around 6 per cent to SAR771 and Jeddah dropped 7 per cent to SAR635.
“Religious tourism is a key demand driver for Saudi Arabia, with Makkah and Madinah continuing to outperform other destinations. The positive impact of the Hajj season is clear in Makkah’s higher occupancy and ADR levels during May. When June’s figures are available, we expect to see strong figures for Madinah, where many pilgrims head after Hajj. Meanwhile, ongoing investments in pilgrimage infrastructure, combined with significant hotel expansion, should support long-term growth across both cities,” Kevin Duffield, Director of Built Asset Consulting at Cavendish Maxwell said in a statement.
Saudi Arabia currently has just over 176,000 hotel rooms in total, with Makkah holding the largest share at 64,330, followed by Riyadh at 28,000 and Madinah at 22,115. Higher-end properties account for two-thirds of the national supply, rising to 73% in Riyadh and 70% in Madinah.
The country is set to add 105,500 new rooms across 382 hotels by 2030. Around 18,150 rooms across 82 hotels are due this year alone, with Makkah and Madinah accounting for roughly 40 per cent of those new keys. Riyadh will receive more than 2,780 new rooms across 15 hotels in 2026, Jeddah nearly 2,750 across 18 hotels, and Al Khobar 760 rooms across 5 properties.
The longer-term target is 150 million annual visitors by 2030, with Riyadh Expo 2030 and the FIFA World Cup 2034 together expected to draw more than 42 million visitors.
Duffield noted that geopolitical pressure had weighed on inbound figures but that domestic travel had largely compensated. “While uncertainty and lower international travel demand may continue to influence market performance in the short term,” he said, “the combination of growing domestic tourism, sustained pilgrimage activity, and continued investment in tourism infrastructure positions the sector well for recovery and longer-term development.”
