Saudi Arabia's domestic tourism expenditure climbed 5% year-on-year in the first half of 2026, a sign of underlying market strength even as global travel patterns remained uneven. The data was disclosed by Ageel AlShaibani, the newly appointed CEO of the Saudi Tourism Authority (STA), during the opening of WTM Spotlight Riyadh, a new trade event held in the capital from 8–10 September.
AlShaibani, who took the helm at STA earlier this year, addressed an audience of international buyers, hoteliers, and destination management companies. He framed the domestic growth as evidence of the Kingdom's broadening appeal. "Saudi's tourism sector continues to demonstrate resilience and strength, even amid an unpredictable first half of 2026," he said. "Domestic tourism spend grew by 5% year-on-year, underscoring the depth and durability of our market."
The event marks a strategic shift for STA, moving beyond awareness campaigns toward direct commercial engagement. WTM Spotlight Riyadh is designed to connect international travel buyers with Saudi suppliers, with the goal of converting interest into bookings. The opening day featured sessions on destination development, itinerary creation, and product packaging across the Kingdom's emerging regions.
From awareness to conversion
Under the "Saudi, Welcome to Arabia" brand, STA is showcasing a portfolio that now spans cultural heritage sites, Red Sea coastal resorts, luxury hospitality, and adventure tourism. New projects such as NEOM, the Red Sea Global developments, and Diriyah Gate are increasingly central to the pitch, offering international partners a wider range of sellable products.
AlShaibani emphasised the timing of his appointment. "I'm delighted to begin my tenure as the new CEO of the Saudi Tourism as Saudi hosts the inaugural WTM Spotlight Riyadh," he said. "This is an important time to bring our global partners closer to the momentum here, and to work together to convert growing demand into lasting opportunity."
The domestic spending increase adds another layer of resilience. While international arrivals remain a key target, the strength of the home market provides a stable base for operators and investors. This dual-track growth is a theme echoed across the region, with similar patterns seen in other Gulf markets.
For travel trade professionals, the event underscores a broader trend: destination marketing is giving way to partnership-driven sales. STA is holding bilateral meetings throughout the three-day event, focusing on route development, tour packaging, and MICE opportunities. The authority's participation is part of a wider push to strengthen ties with global distributors, including GDS operators and online travel agencies.
Industry observers note that Saudi Arabia's approach mirrors successful models elsewhere. The emphasis on domestic resilience, combined with aggressive international marketing, has parallels in markets like the Philippines, where domestic travel has driven hotel occupancy. Similarly, the use of trade events to spotlight new products is a tactic seen at MTE Hanoi, which highlights Vietnam's hospitality growth.
AlShaibani's remarks also hinted at future initiatives. While he did not disclose specific targets, the STA is expected to announce new route incentives and marketing campaigns in the coming months. The authority's focus on converting demand into visitation is likely to involve closer collaboration with airlines and tour operators, particularly on long-haul routes from Europe and Asia.
As WTM Spotlight Riyadh continues, the message is clear: Saudi Arabia is no longer just a destination to be discovered, but a market to be sold. With domestic spending on the rise and international buyers in attendance, the Kingdom is positioning itself as a dual-engine tourism economy. For travel professionals, the opportunity lies in tapping into both streams.
