The Hajj pilgrimage begins Wednesday, June 4, kicking off one of the most critical weeks for Saudi Arabia’s tourism sector. In just five days, nearly 2 million pilgrims are expected to head to Makkah.
Last year, the kingdom recorded 29.7 million international visitors, according to the latest Vision 2030 progress report. Of those, 16.9 million arrived for Umrah — performed year-round — while 1.61 million completed Hajj, a pilgrimage bound to specific days on the Islamic calendar.
By the end of the decade, Saudi Arabia hopes to bring in 30 million religious tourists annually. That’s driving multibillion-dollar developments across the holy cities.
Megaprojects in Makkah and Madinah
Central to the kingdom’s ambitions is the Rua Al Madinah project, launched in August 2022 by Crown Prince Mohammed bin Salman. The development spans 1.5 million square meters east of the Prophet’s Mosque. According to government projections, Rua Al Madinah will add more than 47,000 hotel rooms by 2030 and expand capacity to host 149,000 people.
Makkah is undergoing its own transformation through the Masar project, a 1.2-square-kilometer corridor centered on King Abdulaziz Road. The mixed-use development is expected to cost $26.7 billion and include 24,000 hotel rooms by 2030, per Arab News.
Makkah remains the focal point of both pilgrimages. Hajj is a once-in-a-lifetime obligation for Muslims who are physically and financially able. Madinah, while not required for Hajj or Umrah, holds profound historical and spiritual significance and saw 13 million visits in 2023, according to the Saudi Press Agency.
Hotel Developers Double Down on the Holy Cities
With demand climbing, hotel chains are ramping up supply. Radisson Hotel Group plans two more openings in Makkah and Madinah this year.
“Religious travel remains one of the safest and most resilient investment bets in the kingdom,” said Radisson’s regional development VP, Elie Milky. “You may have 20 or 30 hotels in The Red Sea or Neom. But the bread and butter of Saudi tourism is Riyadh, Jeddah and the Eastern Province as commercial hubs, and the holy cities and secondary cities.”
Milky said Radisson re-entered the Madinah market three months ago.
“Our strongest markets in the past year have been Riyadh and Madinah in terms of development deals,” he said.
Despite the boom, religious tourism remains seasonal, especially in Makkah, where hotel rates swing dramatically. A room at the Park Inn by Radisson can cost just $32 a night outside of Hajj season, but more than $500 during the pilgrimage.
“There is more fluctuation in Makkah and Madinah, more seasonality,” Milky said. “But we believe seasonality is less in Madinah than in Makkah. Makkah has more work to be done to reduce seasonality, but I’m a big fan of Madinah — it’s easier to make it less seasonal.”
One lever to pull? Longer stays.
“I believe in the overflow of religious tourism into parts of the economy,” Milky said. “You want to avoid travelers going to Makkah or Madinah for three days, then leaving. You want them to spend time in Jeddah. You want them to spend a week in a place.”
That extended stay, he argued, could open the door to more spending across the kingdom, especially in secondary cities.
“The focus on religious tourism should continue, but it should blend with the cultural offerings of the kingdom,” Milky added. “You can call it ‘Umrah Plus’ [or] a cultural tour. Something to extend the length of stay, extend the average spend. Religious tourism should not be done in isolation.”
Demand Is Already There
At the Future Hospitality Summit in Riyadh last month, Amin Ismail, managing director at investment firm Certares, echoed that sentiment.
“We see religious travel as the ‘low-hanging fruit’ for the Kingdom’s tourism sector; the demand is natural and already present,” he said. “Last year, visitor numbers were likely in the low teens of millions, and Vision 2030 aims for over 30 million. This anticipated demand is evident in the construction around the holy sites.”
Ismail also highlighted the potential of combining religious trips with other travel purposes.
“A key component is also the potential to package religious visits with other experiences,” he said. “For example, someone attending a MICE event might extend their trip for Umrah or visit other destinations. The tourist numbers are strong and poised for growth as capacity increases.”
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