Saudi tourism down 6% in early 2026; minister cites conflict, inflation

Saudi Arabia's tourism sector shrank roughly 6% in the first five months of 2026, a performance Tourism Minister Ahmed Al-Khatib described as good given the regional climate.

Speaking at the PRIORITY Europe 2026 Summit organized by the FII Institute, he said the Kingdom hedged against the broader travel slump through Hajj and Umrah traffic. Tourism started the year on strong footing, with Gulf Cooperation Council countries posting growth of about 10% in the first quarter, Al-Khatib added.

The sector later took a hit from the conflict with Iran, flight suspensions, inflation, and trouble securing aviation fuel – costs that pushed up travel prices, he said.

Saudi Arabia and other Gulf states are recovering quickly from that disruption, Al-Khatib told the summit. Airlines in the Kingdom and across the GCC have resumed full operations in recent weeks.

He noted that the current period is usually a low season for tourism in the Gulf, where demand peaks in winter – unlike Europe, where summer months are busiest.

Domestic tourism held up better. Resorts at the Red Sea Project were fully booked during the Eid Al-Fitr and Eid Al-Adha holidays. Domestic travel also outperformed last year, Al-Khatib said, as many residents chose to holiday inside the Kingdom rather than go abroad.