RIYADH: Saudi Arabia’s domestic tourism sector is experiencing a sharp rise in travel during Eid Al-Fitr, injecting fresh momentum into the hospitality industry. A growing preference for local destinations is reshaping the market as residents seek immersive experiences within the nation’s tourism landscape.

The Kingdom saw a 45 percent rise in domestic flight bookings in 2024, driven by expanding tourism offerings and greater connectivity through low-cost carriers, according to Almosafer’s latest travel trend report released in January.

Domestic travel has surged in recent years, with Eid Al-Fitr becoming a peak period for local tourism, said Nicolas Mayer, PwC Middle East partner and global tourism industry lead. He noted that domestic flight bookings rose 45 percent year-on-year in 2024, highlighting a growing preference for local exploration.

“There are a few key reasons behind this shift. First, the Kingdom has made huge strides in improving its tourism offerings. With more affordable flight options due to low-cost carriers, travel has become a lot more accessible,” Mayer said.

The report showed a 39 percent increase in domestic room night bookings, while combined local flight and hotel reservations accounted for over 40 percent of the travel market, up 11 percent year-on-year.

The surge in domestic travel is fueled by a broader range of destinations, accommodations, and experiences attracting leisure visitors. Family and group travel have been major drivers, with bookings in these segments soaring over 70 percent.

Saudi Arabia’s mega-projects, including NEOM, a futuristic city on the Red Sea, and The Red Sea Project, which focuses on luxury and eco-tourism, further fuel domestic tourism growth. Cultural landmarks like AlUla, known for its ancient Nabatean heritage, and Diriyah, the birthplace of the Saudi state, are undergoing significant restoration to offer visitors rich historical and cultural experiences.

“Eid Al-Fitr is a special time for families and culture, and it encourages travel and experiencing something new. There are so many great options for people to celebrate within the Kingdom — it’s a great opportunity to discover Saudi Arabia’s rich culture and hidden gems right here at home,” he added.

Mayer pointed to Saudi Arabia’s massive investment in tourism infrastructure under Vision 2030, which is making it easier for residents to explore new destinations.

The Kingdom’s Minister of Tourism Ahmed Al-Khateeb recently said that the nation’s tourism accommodation is expected to double over the next decade. The country currently has around 400,000 guest rooms, projected to reach 800,000 by 2030. Al-Khateeb reiterated Saudi Arabia’s goal of becoming one of the world’s top seven tourism destinations by the end of the decade.

At King Abdullah University of Science and Technology, officials have observed a significant rise in family and group bookings, which have grown over 70 percent across key traveler segments.

Nour El-Shikh, media and public relations specialist in global branding and communications at KAUST, said travel groups are gravitating toward destinations that offer distinctive events and experiences.

“While major cities like Makkah, Riyadh, and Jeddah remain popular, emerging spots like Abha, Al Jubail, Jizan, Tabuk, and Hail are drawing increased attention for their unique landscapes and activities,” El-Shikh said.

AlUla, a UNESCO-listed site, has also gained traction as a premier domestic and international destination, a sign of Saudi Arabia’s continued investment in diversifying its tourism appeal.

“This has fostered a renewed appreciation for the Kingdom’s rich cultural heritage and natural beauty. The combination of improved infrastructure, increased accessibility, and a growing emphasis on family-oriented activities has made exploring local destinations more appealing than ever,” El-Shikh added.

The Haramain Train, which connects Madinah, Jeddah, and Makkah, is another example of how Saudi Arabia is reducing car traffic and improving access to Islam’s two holiest cities, she added.

Hotels, resorts adapt to demand

With the surge in domestic travelers, Saudi Arabia’s hospitality sector is evolving to cater to changing preferences. Mayer pointed out that hotels and resorts are focusing on personalized experiences rather than simply increasing room capacity.

“Take Eid, for example. It’s a time when families want to be together, enjoy traditions, and make memories. Operators are catching on to that and offering packages and programs that feel more meaningful — whether it’s culturally inspired dining, kids’ activities, or even small touches that reflect the spirit of the holiday,” he said.

The demand for alternative accommodations is also growing, with vacation rentals, villas, and hotel apartments gaining popularity, particularly among families. Meanwhile, digital innovation is playing a critical role in enhancing the travel experience.

“If the booking process isn’t smooth or the service isn’t responsive, people notice. Tech isn’t a nice-to-have anymore — it’s expected,” Mayer added.

El-Shikh echoed this sentiment, emphasizing that many establishments are expanding and renovating to accommodate larger groups. “They are also introducing special Eid packages with family activities, cultural events, and traditional culinary experiences,” she said.

Mobile apps, virtual tours, and seamless payment methods such as Apple Pay and buy now, pay later options are also shaping consumer behavior. Sustainability and eco-friendly practices are becoming a priority, aligning with modern travelers’ values.

Future of domestic tourism

Saudi Arabia’s domestic tourism market is set for further transformation, driven by technology and evolving consumer expectations. Mayer expects a rising demand for personalized, culturally immersive, and seamless experiences.

“On the business side, I’m seeing a lot of energy going into creating more curated, tech-enabled journeys. Travelers expect smooth bookings, helpful digital tools, and recommendations that feel relevant. It’s no longer about just having a website or an app — it’s about using tech to anticipate what people want before they even ask,” he said.

The expansion of tourism beyond the well-known urban centers is also unlocking new opportunities. “More regions across the Kingdom are starting to offer these kinds of experiences. We’re moving beyond the well-known cities, and that’s opening up a whole new set of opportunities for domestic tourism,” Mayer added.

El-Shikh highlighted a growing trend toward experiential travel, where visitors seek immersive cultural experiences. “Stakeholders are developing unique offerings that highlight the Kingdom’s diverse heritage and natural landscapes,” she said.

New infrastructure fuels demand

The Kingdom’s infrastructure expansion is proving to be a game-changer for domestic tourism. Mayer noted that investments in roads, airports, and public transport are making once-remote destinations more accessible.

“It’s not just about building new airports or roads — it’s about opening new areas of the country that people might not have explored before,” he said.

Businesses are capitalizing on this momentum by designing experiences tied to local culture. “Around Eid especially, we see more businesses take advantage of that momentum. They’re creating experiences that feel connected to a place — whether it’s a cultural festival, a family-friendly activity, or a beautifully restored heritage site that tells a local story. These touchpoints resonate with travelers because it’s not just leisure — it’s personal,” Mayer explained.

El-Shikh added that in-destination activities such as guided tours, adventure sports, and cultural experiences are central to travel, enhancing engagement with local communities. “By collaborating with local artisans, cultural institutions, and heritage sites, tourism businesses are creating unique experiences that resonate with residents and encourage them to appreciate their own cultural heritage,” she said.

As Saudi Arabia continues to develop its tourism sector, a rising emphasis on domestic travel is expected to fuel sustained growth, further embedding Eid Al-Fitr as a cornerstone of the Kingdom’s evolving travel landscape.

RIYADH: Saudi Arabia’s non-oil exports to the UAE rose to SR7.10 billion ($1.89 billion) in January, a nearly 10 percent monthly increase, highlighting the Kingdom’s push to diversify beyond oil revenues. 

Machinery and mechanical equipment led the non-oil shipments at SR3.46 billion, followed by transport parts at SR1.74 billion, according to the General Authority for Statistics.  

In December, Saudi Arabia’s non-oil shipments to the UAE totaled SR6.46 billion, down from SR7.17 billion in November and SR5.86 billion in October. 

The rise in non-oil exports underscores the Kingdom’s progress in economic diversification, as it moves to reduce its decades-long reliance on crude revenues. 

Affirming the non-oil private sector’s growth, Saudi Arabia’s Purchasing Managers’ Index reached 58.4 in February, according to the Riyad Bank Saudi Arabia PMI survey compiled by S&P Global. 

In January, the Kingdom’s PMI stood at 60.5, its highest level in 10 years.  

In the UAE, the PMI was 55 in February, while Qatar and Kuwait recorded 51 and 51.6, respectively. 

At the World Economic Forum in Davos in January, Saudi Finance Minister Mohammed Al-Jadaan reiterated the Kingdom’s commitment to economic diversification under Vision 2030, emphasizing that growing non-oil gross domestic product remains a priority over traditional oil revenues. 

According to the GASTAT report, Saudi Arabia also exported plastic goods worth SR307 million in January, followed by base metals at SR288.2 million and chemical products at SR266.2 million. 

China was another major destination for the Kingdom’s non-oil goods, receiving SR2.22 billion worth of products. 

Saudi Arabia exported plastic goods worth SR990.9 million to China, followed by chemical products at SR703.2 million. 

India ranked third among non-oil export destinations, importing Saudi products worth SR2.00 billion in January, a 7.52 percent increase from the previous month. 

Other top destinations for the Kingdom’s non-hydrocarbon goods in January were Turkiye, with a value of SR1.10 billion; the US at SR1.02 billion; and Qatar at SR763.6 million. 

Egypt received non-oil goods valued at SR751.7 million in January, while exports to Kuwait and Belgium totaled SR646.9 million and SR632.2 million, respectively. 

Overall non-oil exports 

Saudi Arabia’s total non-oil exports in January reached SR26.48 billion, reflecting a 10.7 percent year-on-year increase. 

In November, Saudi Arabia's Minister of Economy and Planning, Faisal Al-Ibrahim, stated that non-oil activities now account for 52 percent of GDP, with the sector growing at 20 percent annually since Vision 2030’s launch.  

GASTAT noted that national non-oil exports, excluding re-exports, rose by 13.1 percent over the same period. 

A December report by Mastercard Economics highlighted Saudi Arabia’s strong non-oil sector growth, forecasting a 3.7 percent GDP expansion in 2025 driven by further non-oil advancements. 

Jeddah Islamic Sea Port was the primary exit point for non-oil goods in January, handling SR3.12 billion worth of shipments. 

King Fahad Industrial Sea Port in Jubail and King Abdulaziz Sea Port in Dammam managed SR3.23 billion and SR2.50 billion in outbound goods, respectively. 

Jubail Sea Port was the exit point for goods worth SR2.49 billion, followed by Ras Tanura Sea Port at SR1.65 billion and Ras Al Khair Sea Port at SR1.41 billion. 

Via land, Al Batha Port processed SR1.89 billion in exports, while Al Hadithah Port handled SR706.5 million. 

Among airports, King Khalid International Airport in Riyadh saw outbound shipments worth SR2.67 billion, followed by King Abdulaziz International Airport at SR2.26 billion. 

King Fahd International Airport in Dammam handled SR286.9 million in exports. 

Overall merchandise exports 

Saudi Arabia’s total merchandise exports in January stood at SR97.18 billion, marking a 2.4 percent year-on-year rise. 

The ratio of non-oil exports, including re-exports, to imports, increased to 36.5 percent in January from 35.7 percent in 2024. 

However, oil exports declined by 0.4 percent year on year in January, reducing oil’s share of total exports from 74.8 percent in 2024 to 72.7 percent in 2025. 

Saudi Arabia’s merchandise exports to Asia totaled SR75.43 billion in January, a 6.01 percent increase from the previous month. 

Exports to Europe reached SR10.17 billion, followed by Africa at SR7.28 billion and North America at SR3.95 billion. 

China was the top recipient of Saudi exports, receiving SR14.74 billion in January, a 20.32 percent increase from the previous month. 

Other key destinations included India at SR10.60 billion, Japan at SR9.90 billion, and South Korea at SR9.05 billion. 

Saudi Arabia’s exports to the UAE totaled SR8.44 billion, while outbound shipments to Egypt stood at SR2.84 billion. 

Imports in January 

Saudi Arabia’s imports rose 8.3 percent year on year in January 2025, reaching SR72.62 billion. 

China remained the Kingdom’s top import source, supplying SR19.16 billion worth of goods, led by mechanical appliances and electrical equipment at SR7.95 billion. 

The Kingdom imported transport products worth SR2.78 billion from China, followed by base metals at SR1.96 billion and textiles at SR1.19 billion. 

Imports from the US totaled SR6.04 billion, while inbound shipments from the UAE and India stood at SR3.96 billion and SR3.80 billion, respectively. 

Saudi Arabia also imported goods worth SR3.00 billion from Germany and SR2.48 billion from Egypt. 

Japan supplied SR3.44 billion in imports, followed by Italy at SR2.41 billion and France at SR1.85 billion. 

Sea shipments accounted for SR44.72 billion of total imports, while land and air imports stood at SR8.62 billion and SR19.27 billion, respectively. 

King Abdulaziz Sea Port in Dammam was the leading entry point, handling SR20.92 billion in imports, or 28.8 percent of total inbound shipments. 

Jeddah Islamic Sea Port followed with SR16.75 billion, while Ras Tanura Sea Port and King Abdullah Sea Port processed SR1.70 billion and SR1.11 billion, respectively. 

On land, Al Batha Port and Riyadh Dry Port handled SR3.82 billion and SR2.52 billion in incoming goods, respectively. 

Among airports, King Khalid International Airport in Riyadh received SR9.01 billion in imports, followed by King Abdulaziz International Airport at SR6.24 billion and King Fahd International Airport at SR4.00 billion.