Saudi tourism hits record Q1 as holidays drive domestic demand

Saudi Arabia recorded strong growth in domestic tourism in the first quarter of 2026, with preliminary data from the Ministry of Tourism showing that the number of domestic tourists reached approximately 28.9 million, up 16% from the same period in 2025. Domestic tourism spending also rose to SAR34.7 billion, marking an 8% year-on-year increase.

The figures highlight the growing role of local travel in supporting the Kingdom’s tourism economy. The Ministry said the results reflect the strength of domestic demand and the breadth of tourism offerings across Saudi Arabia, while hospitality facilities posted an average occupancy rate of 59% in Q1.

Key Drivers: Ramadan, Eid, and School Holidays

A primary catalyst for this growth was the alignment of the first quarter with major cultural and religious events. The Ramadan and Eid Al-Fitr season, which fell during this period, saw a massive mobilization of local travelers. Reports from Economy Middle East and Zawya indicate that roughly 10 million domestic tourists traveled across the Kingdom during the holiday period alone—a 14% jump from the previous year.

Spending during these holidays reached SAR 10.2 billion, a 5% increase year-on-year. This peak was supported by a strategic promotional campaign led by the Saudi Tourism Authority (STA) titled "Eid is Blessed with You." The campaign featured curated travel packages developed in partnership with the private sector, specifically targeting luxury resorts in AlUla and the Red Sea, as well as cultural hubs in Jeddah.

Hospitality Performance: Occupancy Rates and Hotspots

The surge in visitors translated into high demand for hospitality infrastructure. The Ministry reported an average occupancy rate of 59% across all hospitality facilities in Q1. However, performance varied significantly by region, with religious and coastal cities leading the charge:

• Madinah: Topped the charts with a staggering 82% occupancy rate, driven by visitors seeking spiritual experiences during the holy month.
• Makkah: Followed with 60% occupancy, though some industry reports suggested that hotels immediately adjacent to the Grand Mosque saw rates nearing 100% during the final ten days of Ramadan.
• Jeddah: Maintained a strong 59% occupancy, benefiting from its dual role as a gateway for pilgrims and a primary leisure destination for families.

Data from the travel platform Wego highlighted a shift in consumer behavior, noting that 76% of all domestic bookings were made via mobile apps. This digital-first trend suggests that the Saudi domestic traveller is becoming more tech-savvy and spontaneous, relying on real-time availability and digital payments.

Resilience Amidst Regional Fluctuations

The 2026 growth is particularly noteworthy given the "regional fluctuations" cited by the Ministry. While global travel can be sensitive to cross-border tensions, the Saudi domestic market has proven to be a "safe haven" for the hospitality sector. By diversifying its offerings—from the snowy peaks of Tabuk to the ultra-luxury resorts of the Red Sea Global project—the Kingdom has successfully captured a segment of the population that might have previously traveled abroad.

Destinations like AlUla and King Abdullah Economic City (KAEC) reported high engagement during the quarter. Specifically, AlUla resorts saw occupancy rates hit 77% during peak festival periods, highlighting the success of the Kingdom's efforts to market its heritage and natural beauty to its own citizens.

The Ministry of Tourism is expected to release a comprehensive, detailed report later this year, which will provide deeper insights into average length of stay and specific demographic trends. Regional tensions may have added uncertainty to cross-border travel and pushed domestic and local travel. What the official data  shows is that Saudi Arabia’s domestic tourism market continued to expand strongly in early 2026, helping reinforce sector resilience and supporting the Kingdom’s long-term tourism growth ambitions.