Saudi Arabia's licensed tourism hospitality facilities increased by 22.7 percent year-on-year to 6,122 in the first quarter of 2026, according to data released by the General Authority for Statistics (GASTAT). This growth reflects the Kingdom's ongoing efforts to expand accommodation capacity to support its burgeoning tourism sector.
Breakdown of Licensed Establishments
Serviced apartments and other hospitality facilities accounted for 3,159 licensed establishments, representing 51.6 percent of the total. Hotels numbered 2,963, making up 48.4 percent. The data underscores a shift towards diverse accommodation options catering to different traveler preferences.
Alignment with Vision 2030
Strengthening the hospitality sector is a cornerstone of Saudi Arabia's Vision 2030, which aims to transform the Kingdom into a global tourism hub by the end of this decade as part of its economic diversification strategy. Having already surpassed the 100 million visitor target, the National Tourism Strategy now aims to attract 150 million visitors by 2030.
Employment Growth in Tourism
GASTAT reported that the number of tourism establishments with employees stood at approximately 177,031 in Q1 2026, marking a 9 percent increase compared with 162,473 in the same quarter of 2025. Employment in tourism activities grew by 6.5 percent, reaching about 1,047,313 people, up from 983,253 a year earlier. Saudi nationals made up 250,094 of these employees, while non-Saudi workers accounted for 797,219.
Guest Stay Patterns
The average length of stay for hotel guests was 4.2 nights in Q1 2026, a 2 percent increase from 4.1 nights a year earlier. Guests in serviced apartments and other facilities stayed an average of 2.2 nights, representing a 1.2 percent increase compared with the same period in 2025.
Occupancy Rates
Hotel room occupancy stood at 60.8 percent in the first quarter, a decline of 2.1 percentage points from 63 percent in Q1 2025. In contrast, occupancy for serviced apartments and other hospitality facilities improved to 51.6 percent, up 1.0 percentage point from 50.7 percent.
Average Daily Room Rates
Average daily room rates moderated in the first quarter. Hotels recorded an average daily rate of approximately SR423 ($112.63), down 11.4 percent from the year-earlier period. Serviced apartments and other facilities averaged SR206, marking a modest 1.2 percent year-on-year decline.
