KSA OUTBOUND TOURISM MARKET SIZE AND SHARE ANALYSIS - GROWTH TRENDS AND FORECASTS (2025 - 2032)

KSA Outbound Tourism Market Size and Forecast – 2025-2032  

The KSA outbound tourism market is estimated to be valued at USD 27,499.8 Mn in 2025 and is expected to reach USD 47,830.0 Mn by 2032, exhibiting a compound annual growth rate (CAGR) of 8.2% from 2025 to 2032.

Key Takeaways of the KSA Outbound Tourism Market

• The families segment is expected to hold 42.5% of the market share in 2025.
• The leisure travel segment is estimated to hold 28.5% of the market share in 2025.
• The economy segment is expected to account for 35.8% of the market share in 2025.

Market Overview

A prominent trend shaping the KSA outbound tourism market is the rising preference for personalized and experiential travel. Travelers are increasingly seeking unique cultural experiences, luxury accommodations, and adventure tourism, supported by digital platforms offering tailored travel plans. Additionally, growing awareness of sustainable tourism and the rising influence of social media in travel decision-making are steering market dynamics, making outbound tourism more diverse and tech-driven in Saudi Arabia.

Current Events and Its Impact

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Segmental Insights

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KSA Outbound Tourism Market Insights, by Traveler Type – Families Segment Dominates the Market due to their Increasing Inclination Towards Shared Experiences and Multi-Generational Travel

The families segment is projected to account for 42.5% of the market share in 2025, which has been caused by diversity of socio-cultural and economic factors that have a profound impact on the travel behavior pattern. One of the major motivations is the increased focus on family bonding and the ability to establish long-lasting memories, which prompts the families to focus on spending their holidays or school vacations together, including going to places with their families. With the increase of disposable incomes and change of lifestyle orientation to quality time, families are encouraged to visit destinations in foreign countries that will suit all age groups such as children, the old generation and other members who focus on comfort and safety.

In addition, the increasing accessibility and availability of family friendly traveling options is a great contributor to the growth of the segments. Tour operators and traveling service providers are increasingly providing family packages tailored to suit the families with children, such as destinations that have educational and recreational value, kid friendly accommodation, and easy transportation and other specifics. These customized services are used to alleviate common traveling fears like security and itinerary appropriateness that provide confidence to the family travelers.

KSA Outbound Tourism Market Insights, by Purpose of Travel - Leisure Travel Segment Dominates the Market due to Rising Demand for Relaxation, Cultural Exploration, and Lifestyle Experiences

The leisure travel segment is expected to capture 28.5% of the market share in 2025, which depicts a change in the societal perception of the importance of travel as a personal achievement and stress-relief activity. This trend is based on several important reasons. Urbanization and economic boom in Saudi Arabia have led to more disposable income and a lower barrier to cost, which makes people and families spend on outbound holidays in order to forget the daily routine life.

The growing interest and knowledge on the world cultures and historical sites, and other natural marvels drives the leisure travel demand. Tourists also demand immersive tourism in the form of food tourism, outdoor events, and wellness retreats which help them in entertainment and self-improvement. Popular destinations usually have a wide range of attractions that are appealing to a wide audience, such as beaches and mountains, city sightseeing, and so on, which allows customizing the vacations of the population representatives of various categories.

KSA Outbound Tourism Market Insights, by Package Type - Economy Segment Dominates the Market Driven By Affordability, Value-Consciousness, and Expanding Budget Travel Options

The economy segment is projected to hold 35.8% share in 2025, attributed to the fact that this segment attracts a very high population base who are concerned with affordability and value-based travel products without interfering with the fundamental experience. Affordability is still the main determinant of the traveler preference especially amongst young adults, families and middle-income groups who are trying to optimize their constrained travel budgets.

There are a number of structural developments that favor economy travel. The growth of low-cost airlines that have the routes between major Saudi cities and major international destination has greatly reduced air fares and this has made overseas travelling accessible to a wider range of consumer base. Besides competition on the flights, there are also budget accommodation providers (such as hostels, guesthouses, and low-cost hotels) who have a variety of accommodation solutions in relation to the expectations of the economy travelers.

Macro and Micro Economic Factors Impacting the KSA Outbound Tourism Market Growth

Macroeconomic Factors

• Economic and income growth: Steady GDP growth and rising per capita disposable income in Saudi Arabia have increased residents' purchasing power, enabling more international travel. The growing middle class and employment opportunities contribute to higher discretionary spending on leisure and travel abroad.
• Government policies: Saudi Arabia's Vision 2030 aims to diversify the economy, boosting tourism investments and infrastructure. Visa facilitation, fuel subsidies, and improved air connectivity encourage outbound travel.
• Economic diversification efforts: Reducing dependence on oil income by promoting tourism-related sectors helps expand travel and tourism activities, including outbound tourism.
• External economic conditions: Global economic stability, exchange rates, and geopolitical factors impact travel costs and travel demand.

Microeconomic Factors

• Consumer preferences: Increasing tech-savviness, appetite for international experiences, and online booking convenience drive the demand for outbound tourism.
• Generational shifts: Younger generations in Saudi Arabia tend to seek more travel opportunities and diverse experiences internationally.
• Domestic alternatives: Limited entertainment and leisure facilities inside Saudi Arabia have traditionally pushed residents to travel abroad. However, improving domestic tourism could moderate outbound volumes.
• Travel industry infrastructure: Growth of low-cost carriers in the region and expanded flight options make international travel more accessible and affordable for Saudi residents.
• Spending patterns: Higher disposable incomes allow for more luxury travel including premium accommodation, activities, and shopping abroad.

Market Players, Company Insights, and Competitive Intelligence

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Company Insights

• ACE TRAVEL, a leading travel management company, is renowned for its comprehensive services in the outbound tourism sector. With over 30 strategically located offices across the Kingdom, including major cities like Riyadh, Jeddah, Al Khobar, and Jubail, ACE TRAVEL has a robust presence that caters to a diverse clientele The company offers a wide array of services tailored to meet the needs of both individual travelers and corporate clients. These include flight bookings, hotel reservations, visa assistance, car rentals, and travel insurance. Additionally, ACE Travel provides specialized services such as incentive travel, air charter arrangements, and cargo services, ensuring a holistic travel experience.
• Saudi International Travel Company (SITC) has become a prominent player in Saudi Arabia's outbound tourism market, offering a comprehensive suite of services tailored to both leisure and business travelers. With a dedicated team of over 60 professionals, SITC has built a strong reputation for its diverse offerings and commitment to customer satisfaction. SITC provides a wide range of services designed to meet the needs of modern travelers. These include flight bookings, hotel accommodations, visa assistance, car rentals, and travel insurance.
• Al Riyadh Travel and Tourism Company, established in 2007, stands as one of Saudi Arabia's leading travel agencies, offering an extensive array of services to both individual and corporate clients. With eight branches and 15 franchises strategically located across the Kingdom, including Riyadh, the company has built a robust presence in the outbound tourism market. The company provides a comprehensive suite of services encompassing flight and hotel reservations, car rentals, and visa assistance. Additionally, Al Riyadh Travel and Tourism offer specialized packages tailored to various interests, including educational, sports, and cruise packages.

Top Strategies Followed by KSA Outbound Tourism Market Players

• The major players in the KSA outbound tourism sector prioritize a lot on research and development (R&D) with an aim of satisfying the high and demanding tourists. These competitors will spend a lot of resources on luxury travel experiences, unique destination experiences and personalized services that give the satisfaction of the luxury customers in their luxury clientele.
  • As an example, the Al Habtoor Group, joined forces with foreign luxury hotels and resorts to design unique holiday packages to meet the requirements of the Saudi travelers and they include a combination of private jet flights, customized concierge, and luxurious rooms.

• The middle budgets of the players in the KSA outbound tourism segment are more cost-sensitive, and they are trying to provide the cost-effective solutions that provide the necessary balance between the quality and cost. Considering that a substantial number of Saudi consumers are sensitive to prices, these companies create products that comply with both low and middle travel needs without undermining the quality of services. As a way of consolidating their market share, mid-tier firms tend to enter into collaboration and joint ventures, which improve their production capacity, bring in new technology, and improve their general presence in the market.
  • For example, Holidayme, also partnered with Flynas, a low cost carrier, to offer low cost vacation packages to some of the most popular destinations in Europe and Asia Pacific, fulfilling the growing demand of budget travel.

• Small players in the KSA outbound tourism industry have strategically cut niche markets by focusing on specialization or unique product marketing strategies that stand them out of the competition in the industry dominated by larger players. Such companies often draw on the latest technologies in the form of virtual reality travel experiences, AI-controlled personalized travel itineraries, or even sustainable tourism packages that are offered to the niche market segments with highly specific interests.
  • For example, EcoTours KSA targets with their eco-tourism is Costa Rica, where nature conservation, protection of wildlife and minimization of environmental impact of tourism are centered, to attract the attention of a traveler that is more concerned about conservation of the environment.

Market Report Scope

KSA Outbound Tourism Market Report Coverage

KSA Outbound Tourism Market Dynamics

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KSA Outbound Tourism Market Driver - Increasing Disposable Income Among Saudi Citizens

The rising disposable income of the Saudi citizens has emerged as a strong booster to the development of outbound tourism market in Kingdom of Saudi Arabia. With the diversification of the Saudi economy and an increase in household income, people and families now have financial freedom to invest in recreational travel accessories and traveling activities outside the domestic markets. This increased buying capacity is motivating Saudis to travel more abroad, experience luxurious traveling and travel more. Increased disposable income also makes it possible to spend on upscale services like business-class flights, 5-star hotels and special tours, which increases the overall demand in outbound tourism.

The particular illustration of this tendency could be the influx of Saudi tourists in European nations in high seasons that leads to the growth of high-end hospitality services. Indeed, luxury hotels groups such as the Ritz-Carlton and Four Seasons have cited a massive rise in reservations by Saudi nationals, especially in other destinations like the French Riviera and the Swiss Alps.

KSA Outbound Tourism Market Opportunity - Expansion of Flight Routes and Travel Packages

The outbound tourism market of the Kingdom of Saudi Arabia (KSA) is confronted with a great opportunity brought about by the growth of flight routes and diversified travel packages. As more and more middle-income earners and rising disposable income levels have been indicated, Saudi travelers are moving towards more convenient and diverse international destinations. By providing new direct flight routes connecting the major Saudi cities to the popular and emerging global destinations, airlines and travel operators can also capitalize on this demand since they will greatly reduce the travel time; it becomes more convenient. This growth will also make it easier to move around and explore areas outside the traditional holiday destinations which will meet the changing traveler preferences.

As an example, recently Saudi Arabian Airlines introduced direct flights to the less explored areas such as Eastern Europe and Southeast Asia providing new journey opportunities to destinations such as Croatia and Vietnam.

Analyst Opinion (Expert Opinion)

• The KSA outbound tourism market is poised for significant expansion, driven by changing consumer preferences and an increasing appetite for international travel. Insights from the Arabian Travel Market (2023) and the Saudi Travel and Tourism Summit (2022) highlighted key trends, with travel agencies like Almosafer and Taqniyat leading innovative travel packages tailored to Saudi travelers.
• Almosafer's recent introduction of curated experiences in Europe and Asia Pacific reflects a strategic response to the growing demand for unique cultural and adventure experiences. Discussions at these conferences emphasized the importance of leveraging technology for seamless travel planning, as well as the role of social media in influencing travel choices. However, challenges such as fluctuating global travel restrictions and economic uncertainties were noted as potential barriers.
• Companies that can effectively market their offerings and utilize data analytics to understand consumer behavior will likely thrive. Additionally, partnerships with international tourism boards to promote destinations will be crucial. Ultimately, the growth of the KSA outbound tourism market will depend on its ability to innovate while navigating external challenges and enhancing the overall travel experience for Saudi citizens.

Market Segmentation

• Traveler Type Insights (Revenue, USD Mn, 2020 - 2032)
  • Families
  • Couples
  • Solo Travelers
  • Group Tours
• Purpose of Travel Insights (Revenue, USD Mn, 2020 - 2032)
  • Leisure Travel
  • Medical Tourism
  • Business Travel (Other than MICE)
  • MICE (Meeting, Incentives, Conferences & Exhibitions)
  • Others (Educational Tourism, etc.)
• Package Type Insights (Revenue, USD Mn, 2020 - 2032)
  • Economy
  • Intermediate
  • Luxury
• Age Group Insights (Revenue, USD Mn, 2020 - 2032)
  • 13-24 Years
  • 24-40 Years
  • 40-55 Years
  • Above 55 Years
• Gender Insights (Revenue, USD Mn, 2020 - 2032)
  • Male
  • Female
• Booking Channel Insights (Revenue, USD Mn, 2020 - 2032)
  • Offline Travel Agencies
  • Online Travel Agencies
• Type of Business Segment Insights (Revenue, USD Mn, 2020 - 2032)
  • B2B
  • B2C
• Key Players Insights
  • Almosafer
  • ACE Travel
  • Arjaa Travel and Tourism
  • Dadabhai Travel
  • Dulaiman Travel
  • ITL World
  • ICOM DMC
  • Saudi International Travel Company
  • Riyadh Travel and Tourism Company
  • Dnata
  • Al Tayer Group
  • AL BADIE GROUP
  • Kanoo Travel
  • Neo Travels
  • Orient Travel
  • Rayna Tours
  • Barkat Travel Co.
  • Al Naboodah Travel & Tourism Agencies LLC

Sources

Primary Research Interviews

• Regional Manager – Leading Saudi Travel Agency
• Head of Corporate Travel – Major KSA Tour Operator
• VP, Destination Partnerships – Middle East Tourism Board
• Loyalty Program Director – Saudi-based Airline
• Digital Marketing Head – KSA Outbound OTA (Online Travel Agency)

Stakeholders

• Outbound Tour Operators and Travel Agencies
• Airlines and Transportation Providers
• End-use Sectors:
• Family, Religious, Leisure, Business, and Medical Tourism Segments
• Regulatory & Government Tourism Promotion Bodies
• Hospitality Groups (Hotels, Resorts, Rental Apartments at Destinations)
• Technology Solution Providers: Booking, Payment, and Personalization Platforms
• E-commerce and Travel Retailers

Databases

• United Nations World Tourism Organization (UNWTO) Database
• Saudi General Authority for Statistics – Tourism Data
• Saudi Arabian Monetary Authority (SAMA) – Outbound Travel Expenditure Data

Magazines

• Arabian Travel News – KSA tourism market outlook and destination trends
• TTN Middle East – Saudi outbound travel and leisure market
• Travel Weekly Arabia – Outbound travelers from the GCC, with KSA focus
• Destination Saudi – Market trends in Saudi international tourism

Journals

• Journal of Travel Research – Trends in outbound travel from the Middle East
• Annals of Tourism Research – KSA traveler profile studies
• Tourism Management – Consumer behavior in Saudi outbound tourism
• International Journal of Tourism Sciences – Market segmentation in GCC outbound travel
• Journal of Destination Marketing & Management – Evaluation of destination preferences of Saudi tourists

Newspapers

• Arab News – Features on Saudi outbound tourism and policy updates
• The National (UAE) – Regional outbound tourism, with KSA perspective
• Gulf News – Updates and market news for Saudi and GCC travel
• Saudi Gazette – KSA international travel regulations and news

Associations

• Saudi Tourism Authority
• World Travel & Tourism Council (WTTC)
• United Federation of Travel Agents Associations (UFTAA)
• Pacific Asia Travel Association (PATA) Middle East Chapter

Public Domain Sources

• Ministry of Tourism, Saudi Arabia – Outbound tourism policy and initiatives
• Saudi Vision 2030 – Tourism and travel sector targets
• International Air Transport Association (IATA) – Regional travel and aviation data
• United Nations World Tourism Organization (UNWTO) – KSA country reports

Proprietary Elements

• CMI Data Analytics Tool, Proprietary CMI Existing Repository of information for last 8 years.