Saudi Arabia is radically transforming religious tourism into a year-round growth engine for a post-oil economy.

In 2016, Saudi Arabia launched Vision 2030, a sweeping reform agenda to diversify its economy away from oil. Tourism was declared one of its key pillars. Nearly a decade later, the Kingdom has outpaced its own benchmarks. In late 2023, the Ministry of Tourism announced that Saudi Arabia https://carnegieendowment.org/research/2025/03/vision-2030-in-the-home-stretch-clear-achievements-yet-limited-accountability?lang=en had already achieved its original goal of 100 million annual visitors—seven years ahead of schedule. 

A new target has since been set: 150 million total visitors by 2030, with 70 million expected from overseas. Religious tourism has been central to this surge. In 2024, more than 18.5 million pilgrims entered the Kingdom—16.9 million for Umrah and 1.61 million for Hajj. The goal is to accommodate 30 million Umrah pilgrims annually by 2030. According to Astrolabs Insights, religious tourism contributes roughly $12 billion annually to the Saudi GDP, accounting for 20% of the non-oil economy and 7% of total GDP.

The Numbers Behind the Faith

Hajj 2025 welcomed 1.67 million pilgrims from 171 countries. Almost 90% of international arrivals entered via air, land, or sea. Though total numbers dropped 8.5% from the previous year, Hajj remains the world’s largest annual coordinated religious gathering. Meanwhile, Umrah operates year-round and continues to post strong growth—6.5 million international visitors performed Umrah in Q1 2025 alone, up 11% from the same period in 2024.

According to Visa’s Travel Pulse Index, spending during Ramadan 2025 in Makkah rose 162% year-on-year. In Madinah, it was up 64%. Food and beverage led transaction categories, followed by accommodation and transport. The average pilgrim spends USD 1,300 to USD 4,000, depending on the package. In 2023, religious tourism supported over 936,000 jobs. With new infrastructure, capacity targets, and expanded offerings, employment figures are expected to hit

1.6 million by 2030.

A City Rebuilt for Pilgrimage

To accommodate this influx, Saudi Arabia is undertaking vast infrastructure projects to scale capacity and quality. The Rua Al Madinah redevelopment spans 1.5 million square metres, with 47,000 new hotel rooms and facilities to host 149,000 visitors. It’s expected to create 93,000 jobs and https://www.travelandtourworld.com/news/article/medina-leads-the-way-in-saudi-arabias-tourism-boom-surpassing-eighteen-million-visitors-in-2024-and-establishing-itself-as-a-must-visit-destination-for-pilgrims-and-tourists/contribute $37 billion to GDP.

The $26.6 billion Masar Destination in Makkah will add 24,000 hotel rooms and house up to

158,000 pilgrims annually. On the rail front, the Haramain High-Speed Railway moves 70% of

Umrah pilgrims between Makkah, Jeddah, and Madinah in under 2.5 hours. The Mashair Metro moves 72,000 passengers per hour between ritual sites during Hajj. King Salman International Airport in Riyadh is also expanding to handle 120 million passengers annually by 2030. The aim is clear: build a pilgrim metropolis that doubles room capacity, reduces price volatility, and ensures seamless transit.

Smart Hajj: A Digital Leap Forward

These physical upgrades are matched by digital innovations. Saudi Arabia’s Smart Hajj initiative includes AI-powered surveillance, RFID-enabled ID cards, and real-time data analytics to monitor crowds and emergencies. The Nusuk app has over 12 million downloads and offers e-visas, itinerary planning, transport booking, and emergency assistance in 14 languages. Pilgrims, especially elderly and first-time attendees, also benefit from VR-based orientation modules. Train dispatchers are now adjusted based on live crowd data, easing congestion during peak rituals.

Beyond Ritual: Umrah Plus and Extended Travel

Saudi Arabia’s next tourism frontier lies in encouraging pilgrims to stay longer and explore more.

The Umrah Plus program links pilgrimage with visits to cultural sites like Jeddah’s Al-Balad, Taif’s rose farms, and the Red Sea coast. The goal is to boost the average stay from five to nine nights and lift per capita spending above $1,000.

This is supported by regulatory changes. E-visas now cover 63 countries. The country also introduced a 96-hour stopover visa with free hotel stays, encouraging transit passengers to explore. The Red Sea Project, with 50 planned resorts, aims to capture this spillover with luxury eco-tourism.

Fueling Leisure Tourism: From Pilgrimage to Pleasure

And it’s not just the religious subset that’s being affected by the overhaul. However, the ripple effects of Saudi Arabia’s tourism transformation extend well beyond the religious sector. The massive infrastructure upgrades and expanded visitor base developed for Hajj and Umrah are now laying the groundwork for a flourishing leisure tourism industry. According to the UN Tourism Barometer, international tourism receipts in Q1 2025 surged by 102% compared to the same period in 2019, more than doubling the Middle East average of 44% and far surpassing the global average of 3%. 

This extraordinary growth points to the steady rise in pilgrim numbers and the Kingdom’s expanding appeal as a destination for cultural, ecological, and high-end leisure travel. A series of ambitious mega-projects are at the heart of this shift. Along the country’s unspoiled western coastline, the Red Sea Project and Amaala are redefining the luxury travel experience. By 2030, the region will feature 50 hotels spread across 22 islands and inland deserts, including the ultra-exclusive Sheybarah Island, where futuristic overwater villas sit above crystal-clear waters.

Further north, in the emerging city of NEOM, Sindalah Island is poised to become a playground for the elite. This boutique destination will cater to up to 2,400 visitors daily, offering high-end resorts, yacht marinas, and immersive wellness experiences in a setting designed for privacy and opulence.

In the cooler highlands of the Asir region, Soudah Peaks is taking shape as the Middle East’s first alpine-style resort. With a price tag of $7.7 billion, the project aims to attract two million visitors annually and contribute $7.8 billion to the national GDP by 2033. Elevated at 3,000 meters above sea level, it contrasts with the desert landscapes more commonly associated with the region.

Together, these developments are positioning Saudi Arabia as a serious contender in global tourism. From coral-fringed islands and mountain escapes to futuristic cities, the Kingdom is not just catching up with traditional Gulf tourism leaders like the UAE—it’s aiming to surpass them by offering experiences that are unique, ambitious, and deeply rooted in the country’s diverse natural and cultural heritage.

Foreign Direct Investment: Capitalizing on a Tourism Boom

Tourism’s explosive growth is transforming Saudi Arabia into one of the most attractive frontiers for foreign investors and international hospitality brands. In 2024 alone, inbound tourism spending soared to SAR 153.6 billion (approximately $41 billion), marking a 13.8% year-on-year increase. This momentum helped push the Kingdom’s travel balance surplus to an impressive SAR 49.8 billion, underscoring the sector’s rising economic significance.

Global hotel chains have responded swiftly to this opportunity. Marriott and Six Senses are expanding their footprints in key cultural hubs such as Al-Ula and Madinah, drawn by the growing demand for premium accommodation among religious pilgrims and leisure travelers. At the same time, unconventional players are entering the scene. Jim Balsillie, co-founder of BlackBerry, is leading efforts to develop a network of luxury golf resorts across the country, with plans to open between seven and ten courses by 2027—an investment that aligns with Saudi Arabia’s vision to diversify its tourism appeal.

Meanwhile, the Kingdom is charting new waters. Recent Saudi Red Sea Authority regulations aim to turn the Red Sea into a high-end cruise destination, inviting global cruise operators to establish new routes and experiences along the country’s pristine coastline. In a major policy shift, the Saudi Capital Market Authority has also approved foreign ownership of up to 49% of real estate firms in Makkah and Madinah. While land ownership remains restricted, this opening has unlocked billions in foreign direct investment, particularly in hospitality and retail. Projects like Rua Al Madinah, a vast redevelopment initiative featuring tens of thousands of hotel rooms, directly benefit from this reform, exemplifying how tourism is reshaping both the urban landscape and the investment climate of Saudi Arabia’s holy cities.

Geopolitics and Regional Positioning

Tourism in Saudi Arabia is more than an economic lever—it’s a geopolitical instrument. For centuries, Mecca and Medina have served as spiritual anchors for the Islamic world, giving the Kingdom an unmatched religious influence. Today, that influence is being recalibrated through what many analysts describe as “religious diplomacy”, a strategy that blends pilgrimage with humanitarian outreach, cultural soft power, and regional mediation.

As the Middle East grapples with persistent geopolitical challenges, Saudi Arabia is positioning itself as a stabilizing force that is modern, moderate, and open for business. Remarkably, the MENA tourism sector was among the few to fully bounce back from the pandemic, and Saudi Arabia is leading that resurgence. By marrying religious heritage with high-end leisure offerings, the Kingdom is reshaping old narratives and presenting a new face to the world—one that’s increasingly cosmopolitan and inclusive.

This transformation also carries regional implications. Saudi Arabia is no longer just complementing its Gulf neighbours in tourism, competing directly with them. With the launch of Riyadh Air, the rollout of next-generation infrastructure, and the integration of pilgrimage with luxury and eco-tourism, Saudi Arabia is now going head-to-head with established tourism giants like the UAE.

Beyond rivalry, the Kingdom is setting the pace for a broader shift across the region. As oil-dependent economies seek sustainable alternatives, tourism is becoming the cornerstone of diversification. With its scale, ambition, and strategic vision, Saudi Arabia is charting a path https://www.thedailystar.net/opinion/geopolitical-insights/news/trumps-saudi-visit-can-it-be-game-over-netanyahu-3893766 that others are beginning to follow.

Infrastructure and Innovation

At the heart of Saudi Arabia’s tourism transformation lies a colossal investment in physical and digital infrastructure designed to cope with rising demand and redefine the global standard for integrated travel experiences.

In Madinah, the Rua Al Madinah project is turning vision into scale. Spanning 1.5 million square meters, the redevelopment will add 47,000 hotel rooms and accommodate nearly 150,000 visitors at a time. Once complete, it is expected to generate over 93,000 jobs across hospitality, retail, and transport.

In Makkah, the Masar Destination project is reshaping the landscape around King Abdulaziz Road. This $26.6 billion mixed-use development will include 24,000 hotel rooms and house up to 

158,000 pilgrims annually, while also improving urban mobility and access to the Grand Mosque.

Efficient transit is crucial to any pilgrimage experience, and Saudi Arabia is leading in this space.

The Haramain High-Speed Railway now connects Jeddah, Makkah, and Madinah, moving nearly

70% of Umrah pilgrims between cities in less than two and a half hours. Meanwhile, the Mashair Metro, designed specifically for the Hajj season, shuttles up to 72,000 passengers per hour between key ritual sites like Mina, Arafat, and Muzdalifah. Air connectivity is scaling just as rapidly. The King Salman International Airport in Riyadh is undergoing a major expansion to handle up to 120 million passengers annually by 2030, with long-term plans to increase capacity to 185 million by 2050.

But these massive physical upgrades are only half the story. Saudi Arabia’s Smart Hajj initiative firmly brings the pilgrimage experience into the digital age. Pilgrims now carry RFID-enabled smart cards that store personal, medical, and logistical information. AI-powered cameras, drones, and data analytics monitor crowd flow and support emergency response in real time. The Nusuk app, available in 14 languages and downloaded by more than 12 million users, offers e-visa applications, travel itineraries, digital payments, and instant access to support services. Together, these innovations are helping Saudi Arabia build infrastructure and intelligence. The Kingdom is crafting a tourism ecosystem where tradition meets technology and the spiritual journey is supported by one of the world’s most advanced mobility and services networks.

The Road Ahead

Tourism is no longer a sideshow in Saudi Arabia’s economy. According to the World Travel & Tourism Council (WTTC), the sector is expected to contribute 17% of GDP by 2032, growing at over 11% annually. In Q1 2025, Saudi Arabia recorded the highest international tourism receipts of any G20 country. BlackRock, one of the world’s largest asset managers, committed $5 billion from the Public Investment Fund (PIF) to tourism infrastructure. Wyndham and Radisson are expanding mid-market and luxury offerings. Foreign ownership of up to 49% in real estate firms in Makkah and Madinah has been approved, unlocking new streams of foreign direct investment.

Saudi Arabia is using its historic and spiritual heritage as a launchpad to attract global visitors, from pilgrims to leisure seekers. Through a combination of mega-projects, regulatory openness, and a savvy blend of tradition and innovation, it is not only reducing its dependence on oil—it’s redefining what the region stands for on the world stage. For decades, the Middle East was seen as a region beset by volatility. However, Saudi Arabia’s tourism push is changing perceptions. According to the World Bank, Gulf tourism outperformed global benchmarks in 2023 despite broader regional instability. Luxury spending in the GCC hit $12.8 billion in 2024, with tourism accounting for 50–60% of purchases. Saudi Arabia is using its historic and spiritual heritage as a launchpad to attract global visitors, from pilgrims to leisure seekers. Through a combination of mega-projects, regulatory openness, and a savvy blend of tradition and innovation, it is not only reducing its dependence on oil—it’s redefining what the region stands for on the world stage.