Saudi Arabia’s domestic tourism sectors records strong growth in first quarter

 

Destinations such as AlUla and King Abdullah Economic City saw strong engagement

Saudi Arabia’s domestic tourism witnesses increase of 16% compared to last year 

Saudi Arabia’s domestic tourism sector recorded strong growth in the first quarter of 2026, with preliminary data from the Ministry of Tourism showing a significant rise in both visitor numbers and spending. Domestic trips reached approximately 28.9 million, marking a 16% increase compared to Q1 2025, while total spending climbed to SAR 34.7 billion, up 8% year-on-year.

These figures underscore the growing importance of local travel in supporting the Kingdom’s tourism economy. The Ministry attributed the performance to robust domestic demand and an expanding range of tourism offerings, with hospitality establishments reporting an average occupancy rate of 59% during the quarter.

Holiday Seasons Drive Travel Surge

A key driver behind this growth was the alignment of Q1 with major religious and cultural events, particularly Ramadan and Eid al-Fitr. These occasions prompted a surge in domestic travel, with around 10 million trips recorded during the holiday period alone—an increase of roughly 14% compared to the previous year.

 

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Tourism spending during this peak period reached SAR 10.2 billion, reflecting a 5% year-on-year rise. This momentum was further supported by promotional efforts from the Saudi Tourism Authority, including the “Eid is Blessed with You” campaign. The initiative featured curated travel packages developed in partnership with private sector operators, targeting destinations such as AlUla, the Red Sea Project, and cultural hubs like Jeddah.

Hospitality Performance Across Key Destinations

The increase in domestic travel translated into strong demand for accommodation across the Kingdom. While the national average occupancy rate stood at 59%, several key destinations significantly outperformed this benchmark:

  • Madinah led with an occupancy rate of 82%, driven by religious tourism during the holy month.
  • Makkah followed at 60%, with hotels near the Grand Mosque nearing full occupancy during the final days of Ramadan.
  • Jeddah maintained steady performance at 59%, benefiting from its dual role as a pilgrimage gateway and a family leisure destination.

Digital booking trends also continued to evolve. Data from Wego showed that 76% of domestic bookings were made via mobile apps, highlighting a growing preference for convenience, real-time availability, and digital payment solutions among Saudi travelers.

Strong Domestic Market Amid Regional Uncertainty

The sector’s performance is particularly notable against a backdrop of regional fluctuations impacting international travel. The domestic tourism market has increasingly acted as a stabilizing force, offering resilience for the hospitality industry.

By expanding its tourism portfolio—from the mountainous landscapes of Tabuk to the luxury developments of the Red Sea—Saudi Arabia has successfully encouraged residents to explore destinations within the Kingdom rather than travel abroad.

 

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Destinations such as AlUla and King Abdullah Economic City saw strong engagement, with AlUla’s resorts reaching occupancy rates of up to 77% during peak festival periods. These figures highlight the success of efforts to promote the Kingdom’s cultural heritage and natural landscapes to domestic audiences.

Looking ahead, the Ministry of Tourism is expected to release a more detailed report later this year, offering deeper insights into traveler behavior, including average length of stay and demographic trends. Early indicators suggest that domestic tourism will continue to play a central role in strengthening the Kingdom’s tourism sector and supporting its long-term growth ambitions.

Source: https://www.traveldailymedia.com/

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