Saudi Arabia’s tourism workforce hits 966k amid sector growth push 

Saudi Arabia’s hospitality footprint continued to grow, with the number of licensed establishments rising to 4,425 by the end of 2024. Getty
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Updated 24 April 2025
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Saudi Arabia’s tourism workforce hits 966k amid sector growth push 

RIYADH: Employment in Saudi Arabia’s tourism sector climbed 4 percent year on year in the final quarter of 2024 as the Kingdom accelerated its efforts to expand the industry. 

According to new data from the General Authority for Statistics, the workforce included 242,073 Saudi nationals, making up 25 percent, and 724,458 foreign workers, or 75 percent. 

This aligns with Saudi Arabia’s National Tourism Strategy, which aims to create 1.6 million jobs by 2030, and attract 150 million visitors annually while increasing tourism’s contribution to 10 percent of gross domestic product. 

The figures come in the same week as it was announced that from April 2026 41 tourism roles, including hotel managers, travel agency directors, and tour guides, will be reserved for Saudi nationals under government plans to boost local employment and reduce reliance on foreign labor. 

In its latest report, GASTAT stated that the total number of employees in the sector reached 966,531 during the last three months of 2024, adding: “The number of male employees in tourism activities reached 837,972, with a participation rate of 86.7 percent, while the number of female employees in tourism activities reached 128,559, with a participation rate of 13.3 percent of the total employees in tourism activities during Q4 of 2024.”

The highest employment levels were reported in Riyadh and Makkah regions, which together accounted for nearly two-thirds of the total workforce in tourism-related activities.

Riyadh alone employed 320,617, while Makkah followed with 268,954. The capital also had the highest share of Saudi nationals in the sector at 95,825, or 29.9 percent of its local tourism workforce. 

Saudi Arabia’s hospitality footprint continued to grow, with the number of licensed establishments rising to 4,425 by the end of 2024, including 2,163 hotels and 2,262 serviced apartments and other accommodations. 

The data showed hotel occupancy remained relatively stable at 56 percent, compared to 60.2 percent a year earlier, despite the rapid expansion in licensed capacity. Serviced apartments, meanwhile, saw a modest increase, rising to 55.9 percent from 55.4 percent the previous year. 

The average daily hotel room rate remained competitive at SR440 ($117.31) in the fourth quarter of 2024, slightly easing from SR449 a year earlier. Meanwhile, serviced apartment rates saw strong growth, rising 25.1 percent to SR220 — pointing to increasing demand and limited supply in that segment. 

The data also highlighted the average length of stay for hotel guests, which remained steady at approximately 3.6 nights in the fourth quarter of 2024 — the same as in the corresponding period of 2023. 

In contrast, the average stay in serviced apartments and other hospitality facilities was around 2.1 nights, marking a 12.1 percent decline compared to the same quarter of the previous year.


Global brands shut Middle East stores as conflict causes chaos

Updated 20 sec ago
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Global brands shut Middle East stores as conflict causes chaos

  • Luxury brands and retailers close stores in Middle East
  • Conflict threatens the region that has ‌been luxury’s fastest growing
  • Mass-market retailers monitor situation, adjust operations in region

PARIS: In Dubai and other major Middle Eastern shopping hubs, many stores are closed or operating with a skeleton staff as the escalating conflict in the ​region causes chaos for businesses and travel.

The US-Israeli air war against Iran expanded on Monday with no end in sight, with Tehran firing missiles and drones at Gulf states as it retaliates for a weekend of bombing that killed Iran’s supreme leader and reportedly killed scores of Iranian civilians, including a strike on a girls’ primary school.

Chalhoub Group, which runs 900 stores for brands from Versace and Jimmy Choo to Sephora across the region, said its stores in Bahrain were closed, while other markets, including the UAE, Saudi Arabia, and Jordan remained open though staff attendance was “voluntary.”

“We operate with a lean team formed of members who volunteered and feel comfortable to come to the store,” Chalhoub’s Vice President of Communications Lynn al ‌Khatib told Reuters, adding ‌that the company’s leadership team personally visited Dubai Mall and Mall of the Emirates ​on ‌Monday ⁠morning to check ​in ⁠with workers.

E-commerce giant Amazon closed its fulfillment center operations in Abu Dhabi, suspended deliveries across the region and instructed its employees in Saudi Arabia and Jordan to remain indoors, Business Insider reported on Monday, citing an internal memo.

Gucci-owner Kering said its stores were temporarily closed in the UAE, Kuwait, Bahrain and Qatar and it has suspended travel to the Middle East.

Luxury growth engine under threat

Shares in luxury groups LVMH, Hermes, and Cartier-owner Richemont were down 4 percent to 5.7 percent on Monday afternoon as investors digested the knock-on impacts of the conflict.

The Middle East still accounts for a small share of global spending on luxury — between 5 percent and 10 percent, according ⁠to RBC analyst Piral Dadhania. But the region was “luxury’s brightest performer” last year, according to consultancy ‌Bain, while sales of expensive handbags have stalled in the rest of the ‌world.

Now, shuttered airports have put an abrupt stop to tourism flows into ​the region and missile strikes — including one that damaged Dubai’s ‌five-star Fairmont Palm hotel — are likely to dissuade travelers, particularly if the conflict drags on.

“If you assume that it’s ‌a $5 billion to $6 billion (travel retail) market and let’s say it’s going to be shut down for a month, we are talking about hundreds of millions of dollars that are definitely at risk,” said Victor Dijon, senior partner at consultancy Kearney.

If Middle Eastern shoppers cannot travel to Paris or Milan, that could also hurt luxury sales in Europe, he added.

Luxury brands have been investing in lavish new stores and exclusive events ‌across the region. Cartier unveiled a “high-jewelry” exhibition in Dubai’s Keturah Park just days before the conflict started.

Cartier and Richemont did not reply to requests for comment.

Luxury conglomerate LVMH ⁠has also bet big on ⁠the region. Last month, its flagship brand Louis Vuitton staged an exhibition at the Jumeirah Marsa Al Arab hotel, and beauty retailer Sephora launched its first Saudi beauty brand.

LVMH does not report specific figures for the region, but in January Chief Financial Officer Cecile Cabanis said the Middle East has been “displaying significant growth.” LVMH did not reply to a request for comment on how its business may be impacted by the conflict.

The Middle East has also attracted new investment from mass-market players. Budget fashion retailer Primark said in January that it plans to open three stores in Dubai in March, April and May, followed by stores in Bahrain and Qatar by the end of the year.

“Primark is set to open its first store in Dubai at the end of March but clearly this is a fast-moving situation which we are monitoring closely,” a spokesperson for Primark-owner Associated British Foods said.

Apple stores in Dubai will remain closed until Thursday morning, the company’s website showed, while Swedish fast-fashion retailer ​H&M said its stores in Bahrain and Israel are ​closed.

Consumer goods group Reckitt has told all employees in the Middle East to work from home, temporarily closed its Bahrain manufacturing site and suspended all business travel to the region until further notice.