Saudi Arabia: The number of licensed hospitality facilities in Madinah has surged to over 450 in 2024, marking a 93 percent increase compared to the previous year, according to the latest Ministry of Tourism data.

The number of licensed rooms also saw growth, rising by 62 percent to nearly 62,000. This increase positions Madinah as the third-leading city in Saudi Arabia for the number of licensed hospitality facilities, following Makkah and Riyadh.

This expansion aligns with the ministry’s commitment to enhancing service quality and supports the National Tourism Strategy’s goal of accommodating more than 37 million Hajj and Umrah travelers, thus strengthening both Islamic and national identity. It also reflects the broader growth of the Kingdom’s hospitality sector, extending beyond Makkah.

The total number of licensed hospitality facilities across Saudi Arabia exceeded 3,950 by the end of the third quarter of 2024, a 99 percent increase from the same period in 2023. Licensed rooms reached 443,000, a 107 percent rise from the previous year’s 214,000.

In a similar trend, Makkah’s hospitality sector also saw substantial growth. By the end of 2024, Makkah had 1,030 licensed facilities, reflecting an 80 percent increase compared to the previous year. This growth cements Makkah’s position as the leader in Saudi Arabia for the highest number of licensed facilities and rooms, underscoring the region's continued focus on enhancing the visitor experience, as reported by the Saudi Press Agency.

According to CoStar, a global real estate data provider, both Makkah and Madinah are expected to see continued development, with 17,646 and 20,079 rooms, respectively, in various stages of construction by 2025.

Saudi Arabia welcomed 30 million inbound tourists in 2024, up from 27.4 million in 2023, reflecting a strong growth trajectory. The Kingdom aims to attract 150 million visitors annually by 2030, with plans to increase the tourism sector’s contribution to the gross domestic product from 6 percent to 10 percent.

In preparation for the 2024 Hajj season, Makkah’s licensed hospitality facilities reached 816, providing 227,000 rooms to accommodate pilgrims. To further enhance the pilgrimage experience, authorities have introduced several new initiatives, including improved crowd management, digital meal distribution, and an expanded electric golf cart fleet at the Grand Mosque.

The General Authority for the Care of the Grand Mosque and the Prophet’s Mosque has also implemented spatial guidance systems and multilingual support to improve visitor navigation, ensuring a seamless pilgrimage experience.