Saudi Arabia’s tourism sector puts sustainability front and center as it eyes new growth
The tourism industry in Saudi Arabia is currently undergoing one of the most ambitious transformations in the region. The Kingdom is working to scale and become a global leader, according to a new study from Strategic Gears.
Tourism is rapidly becoming a central pillar in the Saudi effort to further diversify the national economy into more non-oil sector. The 2019 National Tourism Strategy – part of the broader Vision 2030 goals – established sustainability as a fundamental principle, ensuring that growth in the sector aligns with environmental protection, social inclusion, and responsible investment, building upon the commitments.
Now, Saudi Arabia is shifting into a phase of implementation and performance measurement, focusing on ESG principles across the sector. That will mean further showcasing natural and cultural heritage sites and using more clean energy, among other initiatives.
The rise of Saudi tourism
The Saudi tourism sector has already shown significant growth in recent years. According to Strategic Gears, tourism contributed 12.4% of Saudi Arabia’s GDP in 2024, a share that nearly doubled its size in 2020 and surpassed the average among the GCC nations. It has been a fundamental part of shifting away from an overreliance on oil and gas.
The Kingdom hosted 116 million visitors in 2024 and generated 284 billion Saudi Riyals in spending. Domestic travel remains the backbone of demand, accounting for 86.2 million trips in 2024. Inbound arrivals are accelerating due to eased visa rules and improved air connectivity, with international tourism surpassing 2019 levels by approximately 70%.
Spending growth is notably outpacing visitor volumes; total tourism expenditure increased by 83% between 2019 and 2024, outpacing the 77% growth in tourist arrivals. The main goal for 2030 is to welcome 150 million visitors, increase the sector’s contribution to national GDP to 10%, and create 1.6 million jobs.
Saudi leadership has taken an active role in creating more jobs in tourism. In a bid to increase Saudi participation in skilled tourism roles, the Ministry of Human Resources and Social Development (MHRSD) – in coordination with the Ministry of Tourism – introduced a localization plan covering 41 professions in the tourism sector.
A more sustainable tourism sector
Environmental stewardship is integrated directly into development plans. Saudi leadership has been attempting to combine conservation, clean-energy infrastructure, and heritage preservation while maintaining growth.
The Kingdom’s approach to minimizing ecological impact involves mitigating emissions at the source, building adaptive systems for waste management, and actively restoring ecosystems.
For example, under the Saudi Green Initiative, the government committed to protecting 30% of the Kingdom’s land and marine territory by 2030. The development of sustainable mobility is also an essential initiative. This includes the implementation of large public transit systems such as the Riyadh Metro and the Haramain High-Speed Rail, the expansion of electric vehicle charging networks, and pilots of alternative low-carbon fuels like hydrogen for transportation.
Heritage and the private sector
Another main focus of Saudi Arabia’s future tourism agenda is the transformation of heritage assets into productive tourism resources. For example, Diriyah, the capital of the first Saudi state and a UNESCO World Heritage Site, is a model for heritage development: Authorities are working to preserve historic assets and transform them into cultural and economic hubs to support local identity and create job opportunities.
Overall, these efforts are underpinned by a strong governance structure that ensures institutional coordination and private-sector accountability. Regulatory clarity is provided through the Tourism Law and an expanding electronic visa system to facilitate international arrivals.
The Saudi government is encouraging the private sector to adopt global ESG standards. Companies are encouraged to report material sustainability factors and maintain transparency on the impact of their investments.
As the Kingdom prepares to host major international events such as Expo 2030 in Riyadh and the World Cup in 2034, the next set of challenges will be ensuring these high sustainability standards are applied across the broader tourism ecosystem, including small and medium enterprises and secondary destinations. The coming years will be a decisive test for translating these ambitious policy frameworks into measurable, long-term community benefits.
