Saudi Hotels Experience Declining Rates

Saudi Arabia’s hospitality sector saw a 34.2% year-over-year increase in licensed facilities in 2025, despite average hotel room rates falling by 11.7% between Q4 2024 and Q4 2025. Tourism contributes 5% to Saudi GDP, employing over 1 million people, with a goal to reach 10% by 2030 through increased local and female workforce participation.

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