Tourism and Entertainment

This sector hub tracks Saudi tourism and entertainment KPIs under Vision 2030: visitor targets, tourism GDP contribution, Umrah capacity, hotel rooms, giga-project openings, and live-event demand. It connects the Kingdom’s tourism and entertainment strategy to NEOM, the Red Sea destination, AlUla, Qiddiya, religious tourism, sports, culture, and hospitality investment. The section provides operating intelligence for investors and destination builders watching one of Saudi Arabia’s fastest-growing non-oil revenue streams.

Sector Overview

From Closed Kingdom to Global Destination

Perhaps no sector illustrates the ambition and velocity of Vision 2030 more dramatically than tourism and entertainment. A decade ago, Saudi Arabia did not issue tourist visas. Entertainment venues were virtually nonexistent. International perceptions of the Kingdom as a travel destination were shaped almost entirely by the annual Hajj pilgrimage. Today, Saudi Arabia has set a target of attracting 100 million visits annually and aims for tourism to contribute 10 percent of GDP – a transformation that requires building an entire hospitality ecosystem essentially from scratch.

The e-visa programme launched in September 2019 opened the Kingdom to leisure tourists from dozens of countries for the first time. Social reforms – including the opening of cinemas, mixed-gender entertainment events, concerts, sporting spectacles, and the relaxation of dress codes for visitors – removed barriers that had made tourism promotion untenable. The Saudi Tourism Authority (STA) and the Tourism Development Fund were established to coordinate sector development and channel investment.

The Giga-Project Strategy

Saudi Arabia’s approach to tourism development is anchored by a portfolio of giga-projects, each designed to create a distinct destination proposition at global scale. These projects represent collective capital investment commitments of hundreds of billions of dollars and are overwhelmingly funded through the Public Investment Fund (PIF) and its subsidiary vehicles.

NEOM

NEOM is the most ambitious and most publicised of the giga-projects. Located in the northwest Tabuk region along the Gulf of Aqaba, NEOM spans 26,500 square kilometres and is conceived as a futuristic region incorporating distinct development zones. THE LINE, a 170-kilometre linear city designed to house up to nine million residents with zero-car urban design, has attracted global attention and debate. Trojena, a mountain tourism destination planned to host the 2029 Asian Winter Games, adds a winter sports dimension unprecedented in the Gulf region. Sindalah, a luxury island resort, and Oxagon, an industrial and logistics hub, round out the initial development phases.

NEOM’s tourism proposition combines Red Sea coastal access, mountain terrain, and desert landscapes with futuristic architecture and technology integration. The project faces significant execution challenges related to its scale, technical complexity, and the pace of construction required to meet stated timelines. Nonetheless, the capital commitment and institutional backing are unambiguous.

Red Sea Global

The Red Sea destination, developed by Red Sea Global (formerly The Red Sea Development Company), targets the ultra-luxury and eco-tourism market segment. Located along the Red Sea coast between the cities of Umluj and Al Wajh, the development encompasses an archipelago of more than 90 islands, pristine coral reefs, and coastal desert terrain.

The project emphasises environmental sustainability as a core brand proposition, with commitments to achieving net-positive conservation impact, 100 percent renewable energy for operations, and strict visitor capacity limits to protect marine and terrestrial ecosystems. Phase one includes luxury resort hotels, a dedicated international airport, and marina facilities. Amaala, a second ultra-luxury destination developed by Red Sea Global further north along the coast, targets the wellness, arts, and Mediterranean-climate tourism segment.

Qiddiya

Qiddiya, located southwest of Riyadh, is positioned as the Kingdom’s capital of entertainment, sports, and the arts. Spanning approximately 367 square kilometres, the development includes a major theme park (featuring attractions developed in partnership with global entertainment companies), motorsport facilities (including a Formula One-grade circuit), a water park, performing arts venues, and residential communities.

Qiddiya’s primary market is the domestic and regional population. With Riyadh’s population exceeding eight million and the broader central region lacking major entertainment infrastructure, the demand case for Qiddiya rests on serving an underserved domestic market as much as attracting international tourists.

AlUla

AlUla, located in the Medina region, represents Saudi Arabia’s cultural and heritage tourism proposition. The region is home to Hegra (Mada’in Saleh), the Kingdom’s first UNESCO World Heritage Site, which features Nabataean rock-cut tombs comparable to those at Petra in Jordan. The Royal Commission for AlUla (RCU), established in 2017, oversees the development of the region as a global cultural destination, working with international architects, archaeologists, and hospitality operators.

Diriyah

Diriyah, the historical birthplace of the Saudi state located on the outskirts of Riyadh, is being developed into a major cultural and heritage tourism destination. The Diriyah Gate Development Authority oversees the transformation of the At-Turaif UNESCO World Heritage Site and surrounding areas into a mixed-use destination incorporating museums, cultural institutions, luxury hospitality, retail, and dining. The project positions Diriyah as a living heritage experience that connects visitors to the founding narrative of the Kingdom.

Religious Tourism: Hajj and Umrah

Religious tourism remains the largest established segment of the Saudi tourism industry. The annual Hajj pilgrimage, one of the five pillars of Islam, attracts approximately two million international visitors in a concentrated period. Umrah, which can be performed year-round, has seen visitor numbers expand significantly following visa reforms and infrastructure investments. In 2024, the Kingdom welcomed 16.92 million Umrah pilgrims, with targets set to reach 30 million per year by 2030.

The Saudi government supports this expansion through the Grand Mosque expansion in Makkah, development of the Haramain High-Speed Railway connecting Makkah, Medina, Jeddah, and King Abdullah Economic City, and construction of new hotel and hospitality capacity in the holy cities. Extending the average length of stay for Umrah visitors – through cultural, historical, and leisure attractions in the Makkah and Medina regions – is a specific policy objective designed to increase per-visitor expenditure.

Entertainment and Sporting Events

The entertainment sector has developed rapidly from a standing start since the General Entertainment Authority (GEA) began licensing activities after 2016. Cinemas, which had been banned for over three decades, were reintroduced in 2018 and have expanded into a nationwide network. International performers, from global music acts to theatrical productions, now regularly perform in Saudi venues. Riyadh Season, Jeddah Season, and other seasonal entertainment festivals have attracted millions of attendees.

Sporting events have become a central pillar of the entertainment strategy:

The Saudi Pro League’s acquisition of high-profile international football players has generated global media attention and positioned Saudi football as a destination league. The 2034 FIFA World Cup hosting rights represent the most significant sporting commitment, requiring extensive stadium construction, transportation infrastructure, and hospitality development.

Esports and gaming represent a growing subsector, aligned with the National Gaming and Esports Strategy launched in 2022. Savvy Games Group, a PIF subsidiary, has invested billions in global gaming assets, positioning the Kingdom as a serious player in the interactive entertainment industry.

Hotel and Hospitality Infrastructure

Meeting the 100 million visits target requires a massive expansion of hotel room inventory. International hotel operators including Marriott, Hilton, Accor, IHG, and Aman, along with ultra-luxury brands such as Ritz-Carlton, St. Regis, and Four Seasons, have signed management agreements for Saudi properties. The Tourism Development Fund provides financing for hotel projects, tourism infrastructure, and experience development initiatives.

The hospitality sector also requires workforce development: hotel management, food and beverage service, guest services, and tourism experience design all demand skilled workers in volumes that exceed current domestic supply.

Risks and Structural Challenges

The tourism sector faces significant execution risk. The pace of giga-project construction must align with hotel opening schedules, airline capacity development, and destination marketing timelines. Airlift capacity is a constraint – Saudi Arabia’s geographic position requires most international visitors to fly, and airline seat capacity must expand substantially through the logistics infrastructure. Saudia is expanding its fleet and route network, and a new national airline, Riyadh Air, has been launched specifically to support tourism growth.

Workforce development at scale is perhaps the most fundamental challenge. Hospitality is a service-intensive industry requiring large numbers of trained workers, and the Kingdom’s current workforce lacks sufficient hospitality-skilled Saudi nationals. Balancing Saudisation targets with the practical need for experienced hospitality workers from established tourism markets will require careful policy management.

Outlook

Saudi Arabia’s tourism sector is attempting something without precedent: building a global-scale tourism industry in approximately one decade. The capital commitment is extraordinary, the institutional support is comprehensive, and the underlying demand fundamentals – geographic assets, cultural heritage, a young domestic population, and proximity to large source markets in Europe, Africa, and Asia – are genuine, as geopolitical positioning reinforces the Kingdom’s destination appeal. Whether the 100 million visits target is achieved on schedule or takes longer, the directional trajectory is clear: Saudi Arabia will become a significant global tourism destination, and the investment opportunities created along that trajectory are substantial.