Madinah Hotel Sector Grows Toward 2030 Tourism Goals

The Al-Madinah Chamber has outlined an optimistic outlook for the region's hospitality and tourism services, pointing to strong growth in licensed facilities, occupancy rates, and visitor spending as major projects move forward.

Tourism-related commercial registrations in Madinah — covering hospitality, travel agencies, tour organization, and wedding halls — rose from 2,700 at the start of 2024 to 3,877 by the end of the first quarter of 2025, an annual growth rate of 44.8%. Licensed hospitality facilities reached 523 by mid-2025, including 361 hotels and 95 serviced apartments within the city, with a later 2026 report indicating around 610 facilities, more than 76,000 licensed rooms, and over 240 licensed travel and tourism agencies.

Occupancy in Madinah's accommodation sector averaged around 75% during 2025, the highest level in three years. In the first half of 2025, tourist hospitality facilities recorded a 74.7% occupancy rate, an average daily room rate of about SAR 538, and revenue

Visitor numbers grew to roughly 18 million in 2024, while tourism spending climbed to approximately SAR 52 billion annually by early 2026 — a year-on-year rise of about 22% — driven by lodging, transport, shopping, and other services.

Building toward 2030

The Chamber notes that Madinah requires an additional 79,000 hotel rooms by 2030, linked to major developments such as Rua Al Madinah, a project of about 1.5 million square metres near the Prophet's Mosque focused on smart-city and hospitality expansion. Regional plans target lifting hotel capacity from 75,000 rooms in 2020 to 200,000 rooms by 2030, supported by real estate investment funds developing around 90,000 housing units.

To support investors, the Chamber has launched a tourism sector operations room — a unified service platform assisting with license issuance and renewal for hospitality and tourism facilities, part of wider efforts to strengthen the region's role in economic diversification.

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