Saudi Arabia sees 333% surge in private hospitality licenses amid tourism boom

17/04/2025 01:07 AST

Saudi Arabia issued 8,357 licenses for private hospitality facilities in 2024, marking a 333 percent year-on-year surge as the Kingdom ramps up efforts to build a globally competitive tourism sector.

The latest data, released by the Ministry of Tourism, reflects soaring investor interest in the hospitality segment and the government's push to expand capacity across accommodation types, particularly individually owned, furnished units licensed to serve paying guests, the Saudi Press Agency reported.

This surge in permits aligns with a nearly fourfold increase in tourism license applications since Saudi Arabia secured the hosting rights for the 2034 FIFA World Cup, according to Vice Minister of Tourism Princess Haifa bint Mohammed Al-Saud, who made the remarks during an event earlier this month.

As part of Vision 2030, Saudi Arabia aims to draw 150 million annual visitors by the end of the decade and is investing heavily in mega-tourism and hospitality projects such as NEOM, the Red Sea destination, and Diriyah Gate.

Mohammed Al-Rasasmah, the official spokesman for the Ministry of Tourism, said that "the increasing growth in the number of licenses issued for private tourism hospitality facilities confirms the ministry's keenness to enable individual investors in the hospitality sector to obtain the necessary ministry license to operate, within the framework of the ministry's keenness to ensure the improvement of services provided," the SPA reported.

"He pointed out that these efforts come within the framework of the "Our Guests Are a Priority" campaign; which aims to enhance hospitality facilities' commitment to licensing and classification standards, and ensure their compliance with the requirements and requirements set by the Tourism System and its regulations," it added.

Earlier this month, the ministry reported an 89 percent increase in licensed hospitality facilities across Saudi Arabia, reaching 4,425 units by the end 2024. The rise reflects mounting demand from domestic and international travelers as the Kingdom accelerates tourism development under Vision 2030.

Makkah accounted for 1,030 of these licensed facilities - an 80 percent annual jump - making it the leading region for the number of certified accommodations and rooms. The ministry said the uptick supports its commitment to improving the visitor experience, especially for Umrah pilgrims.

In a post on X at the time, Al-Rasasimah described the surge as "remarkable," adding that it reflects efforts "to support the sector's growth and enhance its investment attractiveness."

The ministry emphasized that the regulation of private hospitality providers is not only intended to enhance competitiveness but also to protect guest rights and uphold service standards, particularly in high-demand areas like Makkah and Madinah.

Arab News