ع
The Saudi Press Agency detailed the positive effects of the Formula 1 stc Saudi Arabian Grand Prix on Jeddah’s economy as the city welcomed thousands of international visitors for the April event. Hotel performance reached record levels with occupancy climbing to 82.5 percent, a 21.1 percent year-on-year increase, while average daily rates grew almost 10 percent to SR833.79. The agency noted that demand for air travel also spiked, contributing to broader gains across retail and service industries in the kingdom’s second-largest city.
A report from Arab News that referenced CoStar data confirmed the strong hospitality figures and placed the Grand Prix within a larger pattern of motorsport-driven tourism growth across the GCC. Such events have helped elevate the profile of host cities while delivering immediate economic returns through visitor spending. The April race built upon the success of previous editions since the inaugural 2021 contest on the Jeddah Corniche Circuit.
According to the World Travel and Tourism Council, Saudi Arabia’s travel and tourism sector expanded more than 32 percent in 2023 to contribute a record SAR 444.3 billion to GDP or 11.5 percent of the total economy. International visitor expenditure surged 57 percent to SAR 227.4 billion that year while domestic spending rose 21.5 percent to SAR 142.5 billion. The council highlighted that the kingdom achieved its 100 million annual tourist target in 2023, seven years ahead of the original schedule.
The OECD Tourism Trends and Policies report for 2024 placed inbound tourist arrivals at 27.4 million for 2023, representing a 65 percent increase over 2022 and a 56 percent rise compared with 2019 levels. This expansion forms part of ongoing national efforts to develop the sector as a key pillar of economic diversification. Jeddah’s role as host of the high-profile Formula 1 race has become integral to attracting sports enthusiasts and leisure travelers alike.
Further analysis from Saudi market research consulting pointed to spikes in weekly bookings during race weeks, with the industry seeing 677,000 bookings worth USD 76.8 million in one reported period. The Grand Prix has also stimulated interest in related areas such as real estate and transportation infrastructure around the circuit. These developments align with strategies to leverage major sporting events for sustained tourism momentum.
In a February assessment, Arab News examined how motorsport is driving tourism across the Gulf, noting that the Saudi Grand Prix delivered record hotel performance in Jeddah while similar benefits appeared in other host nations. The report underscored the importance of integrating such events with wider hospitality and entertainment offerings. Continued investment in the race supports the kingdom’s ambition of reaching 150 million tourists per year by 2030.
