The hospitality sector in Madinah will lead the Kingdom in 2025
The hospitality sector in Madinah witnessed a qualitative leap and exceptional performance during 2025, successfully topping the list of Saudi Arabian cities in terms of hotel occupancy rates. This remarkable achievement reflects the continued growth in demand for this spiritual and historical destination, and the flourishing tourism sector closely linked to visits to the Prophet's Mosque and the region's rich Islamic landmarks. These figures confirm the success of strategic plans aimed at accommodating the increasing numbers of pilgrims and providing them with the best possible services.
Historical roots and strategic shift towards the future
Historically, Medina has always been a major destination for millions of Muslims worldwide, as the Hajj and Umrah pilgrimages are linked to visiting the city of the Prophet Muhammad (peace be upon him). In past decades, the accommodation sector was heavily reliant on specific seasons. However, a radical transformation began with the launch of the Kingdom's Vision 2030. This vision aimed to transform the national economy and diversify its sources, focusing on religious tourism as one of its key pillars. The expansion of the Two Holy Mosques and the development of infrastructure, such as the launch of the Haramain High-Speed Railway and the expansion of Prince Mohammad Bin Abdulaziz International Airport, have facilitated year-round access for visitors, leading to sustainable growth in the accommodation sector that is no longer limited to traditional peak seasons.
Figures and indicators reflect the leading role of the hospitality sector in Madinah
Official data released by the Ministry of Tourism in its report on the performance of the Kingdom's hospitality sector showed that Madinah achieved the highest hotel occupancy rate at 85.5%, while recording its lowest occupancy rate during the year at 59.5%. These figures significantly outperform the Kingdom's overall average occupancy rate of approximately 55%.
In terms of prices, the average daily rate for a hotel room in Madinah was approximately SAR 430, ranging from a minimum of SAR 285 to a maximum of SAR 866, compared to the national average of SAR 457. Regarding financial performance, the average revenue per available room (RevPAR) in Madinah reached approximately SAR 430, exceeding the national average of SAR 321, thus confirming the strength of demand and the stability of operational and investment returns in the region.
Economic dimensions and overall impact of tourism growth
The impact of this outstanding performance extends beyond the local level, encompassing regional and international dimensions. Locally, the revitalization of hotels and accommodation facilities is creating thousands of job opportunities for Saudi nationals and stimulating supporting sectors such as transportation, retail, and restaurants, thus boosting the region's GDP. Regionally, this success solidifies the Kingdom's position as a leading force in managing religious tourism and providing world-class hospitality services that surpass many competing destinations. Internationally, delivering a seamless and comfortable experience for millions of visitors from around the globe reflects the Kingdom's positive image and its exceptional ability to efficiently and effectively host massive crowds.
Sustaining development and achieving the vision's objectives
This advanced performance reflects the continued development of tourism infrastructure and the growing local and foreign investments in accommodation facilities. Government and private sector efforts are combined to enhance the experience of visitors and pilgrims, providing services that meet the aspirations of the guests of God. With this accelerated pace of achievements, the Kingdom is steadily progressing towards realizing the goals of Vision 2030, which include hosting 30 million Umrah pilgrims annually and improving the quality of life and services offered to visitors of the Prophet's Mosque.
