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Regional tensions failed to weaken tourist demand in Mecca and Medina, as the Saudi hospitality sector continues to grow despite geopolitical challenges. A report by Knight Frank stated that the Kingdom is steadily progressing toward achieving its long-term tourism goals, with a current hotel inventory of over 176,260 rooms expected to exceed 281,500 rooms by 2030. The sector also continues to support economic growth, contributing approximately $178 billion to the GDP in 2025. Hotel occupancy rates have averaged 63.4%, with Mecca and Medina maintaining strong performance driven by demand for religious tourism. The number of pilgrims for 2026 is projected to reach around 1.71 million, supported by significant investments in developing hotel projects to accommodate the increasing number of visitors.
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