Riyadh, Jeddah, AlUla and the Red Sea are witnessing a remarkable tourism transformation as Saudi Arabia records a sharp increase in licensed hospitality facilities during the first quarter of 2026. The Kingdom’s tourism sector continues to expand rapidly, supported by new accommodation developments, rising visitor demand and significant tourism investment aimed at strengthening its position as a leading global travel destination.
Saudi Arabia’s tourism story is no longer just about ambitious plans and mega-projects. Fresh figures released by the General Authority for Statistics (GASTAT) show that the country is steadily expanding its ability to welcome growing numbers of domestic and international travellers through a larger and more diverse accommodation network.
The latest data reveals that Saudi Arabia operated 6,122 licensed hospitality establishments during the first quarter of 2026, representing a 22.7 per cent increase compared with the same period in 2025. The growth reflects ongoing efforts to build tourism infrastructure capable of supporting increasing visitor arrivals across the Kingdom.
Hospitality Expansion Supports Growing Tourism Demand
Accommodation remains one of the most important foundations of any successful tourism destination, and Saudi Arabia is investing heavily in expanding its hospitality capacity.
The increase in licensed facilities demonstrates how tourism infrastructure is developing alongside new attractions, cultural experiences, entertainment projects and business travel opportunities.
As destinations across the Kingdom continue attracting more visitors, accommodation providers are responding by increasing capacity and offering a wider range of lodging options.
The growing inventory of hotels, serviced apartments and hospitality establishments is helping ensure travellers have greater flexibility when choosing where to stay, whether visiting for leisure, business or religious purposes.
Serviced Apartments Lead Saudi Arabia’s Accommodation Market
One of the most significant trends emerging from the latest figures is the continued popularity of serviced apartments and hospitality accommodation facilities.
According to GASTAT, Saudi Arabia operated 3,159 serviced apartments and similar hospitality establishments during the first quarter of 2026. These properties accounted for 51.6 per cent of all licensed accommodation facilities nationwide.
Serviced apartments continue to attract a broad range of travellers, including families, long-stay visitors, business travellers and guests seeking flexible accommodation options.
The popularity of these properties reflects changing travel preferences as visitors increasingly seek larger spaces, extended-stay facilities and home-style amenities during their trips.
Riyadh Strengthens Its Position as a Tourism and Business Hub
Saudi Arabia’s capital city remains one of the country’s fastest-growing tourism and business destinations.
Riyadh continues attracting domestic and international visitors through a combination of cultural attractions, entertainment events, conferences and business activities. The city has benefited from extensive tourism investment, new hospitality developments and improved visitor infrastructure.
As tourism demand grows, accommodation providers are expanding their presence across the city to serve both leisure and corporate travellers.
The continued growth of Riyadh’s tourism sector reflects the broader transformation taking place across Saudi Arabia’s visitor economy.
Jeddah and the Red Sea Attract International Travellers
Jeddah remains one of Saudi Arabia’s most important tourism gateways, connecting visitors to the Kingdom’s western region and serving as a major arrival point for international travellers.
The city’s waterfront developments, cultural attractions and strategic location continue to support tourism growth.
Meanwhile, the Red Sea region is emerging as one of the country’s most closely watched tourism destinations. New luxury resorts, coastal experiences and tourism projects are helping position the area as a major leisure travel destination within the Middle East.
Improved accommodation capacity is playing a vital role in supporting visitor growth across both destinations.
AlUla Continues Expanding Its Tourism Appeal
AlUla remains one of Saudi Arabia’s flagship tourism destinations, attracting visitors interested in heritage, archaeology, culture and nature.
The destination’s unique landscapes and historical significance continue to generate international attention, while tourism infrastructure development supports growing visitor numbers.
Accommodation growth across AlUla is helping improve access to the destination and support its long-term tourism development goals.
As tourism demand increases, hospitality providers are continuing to expand lodging options to serve different traveller segments.
Tourism Employment and Investment Continue to Rise
The growth of accommodation facilities is also contributing to wider economic activity across the tourism sector.
New hospitality developments create employment opportunities across hotel operations, food services, visitor experiences and tourism support industries.
At the same time, continued investment in tourism projects, accommodation infrastructure and destination development is helping strengthen Saudi Arabia’s position within the global travel market.
The expansion aligns with the Kingdom’s broader efforts to diversify its economy and increase tourism’s contribution to national growth.
Key Stats
| Indicator | Figure |
|---|---|
| Licensed hospitality establishments Q1 2026 | 6,122 |
| Year-on-year growth | 22.7% |
| Serviced apartments and hospitality facilities | 3,159 |
| Share of total accommodation facilities | 51.6% |
| Reporting Authority | GASTAT |
| Reporting Period | Q1 2026 |
Timeline and Events
Q1 2025 – Baseline period for year-on-year hospitality growth comparison.
Q1 2026 – Saudi Arabia records 6,122 licensed hospitality establishments.
Q1 2026 – Serviced apartments remain the largest accommodation category nationwide.
FAQ
How much did Saudi Arabia’s hospitality sector grow in Q1 2026?
Licensed hospitality establishments increased by 22.7 per cent compared with the first quarter of 2025.
Which accommodation type dominates Saudi Arabia’s tourism market?
Serviced apartments and hospitality accommodation facilities accounted for 51.6 per cent of all licensed establishments.
Which destinations are benefiting from tourism growth?
Riyadh, Jeddah, AlUla and the Red Sea region are among the destinations experiencing significant tourism and accommodation expansion.
Conclusion
Saudi Arabia’s tourism sector continued its rapid expansion during the first quarter of 2026, supported by a substantial increase in licensed hospitality facilities and ongoing tourism investment. With 6,122 licensed accommodation establishments operating across the Kingdom and serviced apartments accounting for more than half of the market, the country is significantly expanding its capacity to welcome visitors. As Riyadh, Jeddah, AlUla and the Red Sea continue attracting growing numbers of travellers, Saudi Arabia is strengthening its tourism infrastructure and reinforcing its position as one of the world’s fastest-growing travel destinations.
