As per IMARC Group, a leading global market research and management consulting firm, has published its latest market intelligence report on the Saudi Arabia leisure travel market size increased from USD 8.92 Billion in 2025 to USD 9.48 Billion in 2026. It is projected to reach USD 15.39 Billion by 2034, exhibiting a CAGR of 6.25% during 2026-2034. The market is experiencing robust expansion, driven by the Kingdom's Vision 2030 diversification agenda, large-scale investment in tourism infrastructure, the relaxation of visa and entry regulations, and rising domestic and inbound demand for cultural, entertainment, adventure, and wellness travel experiences across the country.
The leisure travel sector in Saudi Arabia is undergoing a structural transformation as the government positions tourism as a core pillar of non-oil economic growth. Giga-projects such as NEOM, the Red Sea Project, Qiddiya, AMAALA, and Diriyah Gate are reshaping the Kingdom's destination profile, attracting both international travelers and a growing base of Saudi nationals seeking domestic leisure alternatives to outbound travel. The introduction of the electronic tourist visa system has significantly simplified entry for travelers from dozens of countries, directly supporting inbound visitor growth and positioning Saudi Arabia as an increasingly accessible leisure destination in the Middle East.
How AI is Reshaping the Future of Saudi Arabia Leisure Travel Market?
AI-Powered Personalized Travel Planning and Booking: Saudi tourism platforms and online travel agencies are deploying AI-driven recommendation engines that analyze traveler preferences, past booking behavior, and real-time availability to curate personalized itineraries, hotel packages, and experience bundles, improving conversion rates and enhancing traveler satisfaction across both domestic and inbound leisure segments.
Smart Destination Management and Visitor Flow Optimization: Giga-projects including NEOM and the Red Sea Project are integrating AI-based visitor management systems that analyze foot traffic, seasonal demand patterns, and resort occupancy data to optimize staffing, manage crowd distribution, and maintain premium guest experiences at large-scale tourism developments designed to attract high-value international leisure travelers.
AI-Driven Marketing and Consumer Sentiment Analysis: Saudi tourism authorities and private operators are using AI-powered social media and sentiment analytics to track traveler interest across key source markets, enabling targeted digital campaigns that promote destinations such as AlUla, the Red Sea coast, and Riyadh's entertainment districts to international audiences with greater precision and lower customer acquisition costs.
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Saudi Arabia Leisure Travel Market Trends and Drivers
Saudi Arabia's leisure travel market is being propelled by an unprecedented scale of government-led tourism investment under the Saudi Tourism Strategy, which targets significant growth in the sector's contribution to national GDP and aims to position the Kingdom among the world's leading tourism destinations. The Saudi Tourism Authority has continued to expand its global marketing footprint, opening representative offices in key international source markets and running high-profile destination campaigns to build awareness of Saudi Arabia as a leisure travel option beyond religious tourism to Makkah and Madinah.
Entertainment and events tourism has become a major demand driver, with Riyadh Season and similar large-scale entertainment programs drawing millions of domestic and international visitors annually through concerts, sporting events, theme parks, and cultural exhibitions. These events have created a recurring calendar of leisure attractions that extend average visitor stays and increase per-visitor spending across hospitality, retail, and food and beverage sectors. The General Entertainment Authority continues to license new venues and events across major cities, broadening the range of leisure activities available to both residents and tourists.
Domestic tourism is also playing a significant role in market growth, as Saudi nationals increasingly opt for staycations and domestic leisure trips to destinations such as AlUla, Taif, and the Red Sea coast, supported by improved domestic flight connectivity and new resort openings. The Saudi Ministry of Tourism has actively promoted domestic travel campaigns encouraging citizens to explore heritage and natural attractions within the Kingdom, reducing outbound leisure spending and retaining tourism revenue domestically.
Saudi Arabia Leisure Travel Industry Segmentation
The report has segmented the market into the following categories:
Breakup By Traveler Type
Domestic Travelers
Inbound International Travelers
Domestic travelers account for a substantial share of the market, supported by government-led campaigns encouraging local tourism, improved domestic flight and road connectivity, and the rapid expansion of leisure attractions and resorts across the Kingdom that offer Saudi nationals alternatives to outbound travel.
Breakup By Type of Travel
Individual Leisure Travel
Group Package Tours
Family Vacations
Family vacations represent a significant segment, driven by the development of family-oriented entertainment destinations, theme parks, and resort offerings across cities such as Riyadh, Jeddah, and AlUla that cater specifically to multi-generational domestic and inbound travelers.
Breakup By Booking Mode
Online Travel Agencies
Direct Booking
Offline Travel Agents
Online travel agencies hold a growing share of bookings, supported by rising smartphone and internet penetration across Saudi Arabia and the increasing digitization of hotel and experience bookings through both international and homegrown travel platforms.
Breakup By Region
Riyadh
Makkah
Madinah
Eastern Province
AlUla and Tabuk
Others
Riyadh commands a leading share of the market, driven by its position as the country's entertainment and events capital through programs such as Riyadh Season, alongside continued investment in hotels, retail, and cultural venues that attract both domestic and international leisure travelers.
Competitive Landscape
The report provides a comprehensive analysis of the competitive landscape in the Saudi Arabia leisure travel market with detailed profiles of major companies, including:
Saudia
flynas
Red Sea Global
Rotana Hotel Management Corporation
AlUla Development Company
Seera Group
Almosafer
Marriott International (Saudi Arabia operations)
AccorHotels (Saudi Arabia operations)
Riyadh Season (General Entertainment Authority)
Recent News and Developments in Saudi Arabia Leisure Travel Market
May 2025: Red Sea Global announced the opening of additional resort properties along the Red Sea coast, expanding luxury accommodation capacity as part of the broader Red Sea Project aimed at establishing the region as a premier international leisure destination.
October 2025: The Saudi Tourism Authority launched a new global marketing campaign highlighting AlUla and the Red Sea coast, targeting key source markets in Europe and Asia to boost inbound leisure visitor numbers ahead of the peak winter tourism season.
January 2026: Riyadh Season announced its latest edition featuring an expanded lineup of international entertainment, concerts, and family attractions, reinforcing Riyadh's position as a leading events-driven leisure tourism hub in the Middle East.
March 2026: flynas and Saudia both announced route expansions connecting Riyadh and Jeddah to additional international cities, aimed at improving inbound accessibility for leisure travelers from Europe, Asia, and Africa.
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