Published on
August 23, 2025
Saudi Arabia’s tourism sector has grown rapidly, emerging as a cornerstone of the nation’s broader strategy to move the economy beyond oil. Its progress is a key factor in the non-oil GDP’s strong performance, which has consistently outstripped total economic growth. Under the Vision 2030 framework, the Kingdom is building an economy centred on visitors that strengthens current prosperity while laying the foundation for sustainable progress. Attraction offerings are widening, from cultural sites to large-scale international events, solidifying tourism’s contribution to national prosperity and reducing future dependence on oil revenue.
The IMF Report: Highlighting Saudi Arabia’s Economic Resilience
The Article IV Consultation Report for 2025 by the International Monetary Fund applauded the Kingdom for maintaining robust economic performance for all its external headwinds. Although both the fiscal balance and the current account still register deficits, the Fund highlighted the expanding non-oil economy especially tourism as the main anchor for continuing growth. For 2024, the non-oil real GDP posted a solid 4.5% increase, fuelled mainly by retail, hospitality, and construction. Rising visitor arrivals and increased spending align neatly with broader diversification plans, delivering both immediate revenues and longer-term resilience to the economy.
Growth of Tourism Sector
Tourism is fast becoming a cornerstone of Saudi Arabia’s non-oil economy. The remarkable uptick in 2024 proves that Vision 2030 is moving to plan and that the Kingdom is maturing into a global tourism magnet. Almost 30 million overseas travellers chose Saudi Arabia last year, an 8% leap over 2023. This inflow more than compensated for some of the outbound travel and was a decisive factor in narrowing the current account deficit for the year.
At the same time, international tourism receipts climbed to SAR 169 billion, a vigorous 19% rise over the previous figure. The twin shifts in visitor numbers and the spend per visitor show that Saudi Arabia is drawing attention not just for leisure but for business and cultural travel, adding both depth and durability to the expansion.
Tourism and the Vision 2030 Goals
The latest IMF evaluation highlights how tourism dovetails neatly with the aspirations laid out in Saudi Arabia’s Vision 2030, the blueprint aimed at diversifying the economy and reducing dependence on crude exports. Embedded within Vision 2030 is the ambition to nurture a lively, multifaceted economy where tourism is earmarked as a pivotal engine. By luring millions of overseas visitors, the industry now serves as a cornerstone in achieving the larger aim of stable, long-term growth.
The steady rise in both visitor numbers and spending underscores the Kingdom’s commitment to showcasing its deep-rooted culture, cutting-edge infrastructure, and fresh tourism projects. Signature events such as the Saudi Cup, Formula E races, and a series of grand festivals now pull crowds from every corner of the globe. This surge in tourism neatly fits the Kingdom’s goal of widening the non-oil revenue base, furnishing a revenue stream that is more robust in the face of oil-price volatility.
Economic Outlook: Tourism as a Pillar of Stability
Even with global economic headwinds, Saudi Arabia’s economic prospects are bright, thanks mainly to its tourism industry. The IMF sees real GDP growth quickening to 3.9% by 2026, a trend driven by the expansion of non-oil domains, tourism chief among them. Ongoing government initiatives and the steady rollout of Vision 2030 are lifting domestic demand for goods and services, which in turn fuels growth regardless of external strain.
Tourism, along with other non-oil sources, is on track for sustained gains. A steady surge of international arrivals, matched by rising per-visitor spending, should help cushion the economy from sluggish oil markets and other external shocks. As the kingdom upgrades its tourism rail and hospitality assets while broadening its attractions, the industry is set to remain a cornerstone of national economic dynamism.
The Role of Tourism in Reducing Deficits
Saudi Arabia is seeing its current account swing from a 2023 surplus of 2.9% of GDP to an expected 0.5% deficit this year. The primary drivers are slipping oil export receipts alongside a rise in machinery, equipment, and remittance imports. The expanding tourism sector, however, is acting as a dampener on this shift, absorbing some of the pressures that otherwise stem from oil price turbulence.
Tourism’s resilience has reinforced national financial stability, allowing the Kingdom to absorb external borrowing and trim foreign asset growth without courting financial stress. The Saudi Central Bank’s foreign reserves continue to provide a solid cushion, holding steady at $415 billion, which fortifies the economy against the uncertainty of global oil markets.
The Path Ahead: Ensuring Sustainable Growth
Looking ahead, Saudi Arabia’s ongoing tourism sector expansion is a cornerstone for enduring economic stability. The Fund’s recent analysis underscores the need for a counter cyclical fiscal policy, given the rising global uncertainties and possible softening of oil demand. Prudently reinforced fiscal frameworks, alongside proactive management of credit exposures, will be instrumental in steering the sector’s momentum while safeguarding the financial system from excessive vulnerability.
In parallel, advancing regulatory, labor, and infrastructure frameworks will be decisive for the tourism sector’s durability. Such structural enhancements will do more than support a vibrant tourism market; they will help distribute economic dividends widely, generating employment, spurring regional growth, and enriching the daily lives of residents across the Kingdom.
Enhancing the Tourism Experience
Saudi Arabia’s continuing growth in tourism infrastructure forms a vital part of the Kingdom’s plan to broaden the economy away from oil dependence. A multi-billion-riyal pipeline of spending is going into top-tier resorts, authentic heritage attractions, and the associated logistical backbone. Landmark projects like the Red Sea Project, along with new focal points including the AlUla heritage region, are set to entice millions of additional travellers within the next decade.
To embed tourism firmly within the economic structure, continual teamwork between ministries and private investors is essential. Widening the range of attractions, upgrading edge-to-edge transport corridors, and perfecting the guest journey at every touch point will together create a resilient, income-generating pillar that taps markets around the globe.
Conclusion: Tourism’s Transformative Role in Saudi Arabia’s Economy
Saudi Arabia’s tourism industry is driving major change in the Kingdom’s efforts to diversify its economy beyond oil. Record numbers of international visitors and rising spending patterns clearly show how the sector is now translating into meaningful contributions to the non-oil GDP. Under Vision 2030’s ongoing reforms, tourism will keep a central role in shaping a more resilient and varied economic future.
As the Kingdom earns recognition as a compelling global travel destination, it can build upon the combination of its ancient cultural treasures and cutting-edge infrastructure to raise its profile even higher. The outlook for tourism is decidedly positive, and sustained performance in this sector will be a key pillar for Saudi Arabia’s long-lasting economic security.
