Saudi tourism facilities continued to expand during the second quarter of 2026. The number of licensed hospitality facilities reached 6,278 during the period. That figure represents a 17.9 percent increase from 5,326 facilities a year earlier. The growth shows continued expansion across the Kingdom’s accommodation sector.
Serviced apartments and other hospitality facilities made up the largest share. They accounted for 3,258 establishments during the quarter. Hotels represented the remaining 3,020 licensed facilities. Together, the figures show a broader range of accommodation options across the Kingdom.
Meanwhile, licensed room supply also recorded strong growth during the quarter. The number of hotel rooms increased by 13.2 percent from the previous year. Rooms in serviced apartments and other facilities grew by 19.7 percent. Therefore, accommodation capacity continues to increase alongside the wider hospitality sector.
The expansion supports Saudi Arabia’s broader tourism development strategy. Tourism remains an important part of the Kingdom’s economic diversification plans. The country has continued investing in destinations, accommodation and visitor services. These efforts also support the goals of Vision 2030.
Saudi Arabia exceeded its earlier tourism target ahead of schedule. The Kingdom reached more than 100 million annual tourists in 2023. Authorities later increased the target to 150 million domestic and international tourists by 2030. As a result, the hospitality sector faces growing demand for additional capacity.
Employment also increased across tourism-related activities during the quarter. Tourism establishments with employees reached 179,507. That figure represents an 8.7 percent increase from the previous year. The sector employed about 1.07 million people during the period.
Saudi workers accounted for 258,043 tourism employees. They represented 24.1 percent of total tourism employment. Non-Saudi employees reached 811,077 workers. They represented the remaining 75.9 percent of the sector’s workforce.
However, stronger accommodation supply came alongside softer occupancy levels. Hotel room occupancy reached 51 percent during the second quarter. The rate declined from 53.2 percent during the same period last year. Therefore, the expanding supply has also increased competition among hospitality operators.
Serviced apartments and other facilities recorded a similar trend. Their occupancy rate reached 46.5 percent during the quarter. The rate stood at 50.2 percent one year earlier. This represents a decline of 3.7 percentage points.
Room prices also moved lower during the second quarter. The average hotel daily rate reached about SR563. That figure fell 12.4 percent from SR643 a year earlier. Serviced apartments recorded an average daily rate of SR197. Their average rate declined slightly from SR201 during the previous year.
Despite lower occupancy and room rates, visitor stays showed some improvement. Hotel guests stayed for an average of five nights. That figure increased from about 4.8 nights a year earlier. The longer stays could support spending across hotels and related tourism businesses.
Serviced apartment guests recorded an average stay of about two nights. That figure remained almost unchanged from the same quarter last year. Still, stable stays can provide operators with a more consistent demand base. They can also support planning for future accommodation needs.
Saudi tourism growth continues to reshape the Kingdom’s hospitality market. New facilities are increasing the available accommodation supply. At the same time, operators face changing occupancy and pricing conditions. This combination could encourage businesses to focus more strongly on service quality and visitor experiences.
The continued growth also creates opportunities for investors and hospitality companies. New accommodation projects can serve developing tourism destinations across the Kingdom. Furthermore, expanding room supply can support major tourism developments and local economies. These projects can create jobs while strengthening supporting services.
Saudi authorities continue to develop the tourism sector through long-term investment. The expansion of licensed facilities reflects that ongoing effort. Meanwhile, employment growth shows the sector’s increasing role in the wider economy. These trends can support further diversification as the Kingdom develops its tourism industry.
Saudi tourism facilities are therefore entering a period of continued expansion. Supply is growing across hotels, serviced apartments and other accommodation types. However, occupancy and room rates remain important measures for the sector. Future performance will depend on how effectively demand keeps pace with new capacity.
