Saudi Arabia’s Rise to 29th: What the Travel and Tourism Development Index Says Investors Still Need

Several numbers help investors place the 2026 position in context. The 2026 TTDI covers 110 economies, while one report on the region described the UAE holding 22nd place among 119 economies in the same 2026 edition. Saudi Arabia’s score was reported as 4.45, described as up 3.4% year-on-year and up 7.8% since 2019—one of the biggest seven-year improvements. In the GCC comparison set, the UAE ranked 22nd, Qatar 47th, and Bahrain 55th, while Japan led the global index ahead of the US, Spain, and Australia.

Where the Kingdom Still Lags: Affordability, Investment, and Skills

Even with a higher rank, investors should pay attention to what WEF flags as constraints across the sector. WEF said travel and tourism-related prices have risen faster than inflation in many economies, contributing to a decline in price competitiveness in three-quarters of TTDI-ranked economies between 2024 and 2026. It also warned that, despite improvement, tourism investment has lagged behind activity since 2022. WEF added that workforce shortages and skills gaps risk constraining service quality and adaptation to digital and AI-driven change, and the report also characterized affordability as one of the biggest constraints on tourism.

Saudi Arabia’s own targets and recent volumes show why the gap between activity and investment matters to capital allocators. The Kingdom surpassed its original target of 100 million tourists and raised its ambition to 150 million visitors annually by 2030. It also recorded about 123 million domestic and inbound tourists in 2025, according to the Ministry of Tourism. For investors, that combination—high ambition plus already-large activity—can amplify pressure on areas that TTDI and WEF commentary highlight, including affordability dynamics and the capacity of the workforce to maintain service standards as new infrastructure and destinations scale.

On labor, the 2026 discussion provides both a positive signal and a reminder of execution risk. Tourism employment reached nearly 1.03 million jobs in 2025, and Saudi women accounted for about 47% of the tourism workforce, rising from 5% in 2018 through scholarship, certification, and apprenticeship programs run by the Ministry of Tourism. The WEF also highlighted Saudi Arabia as a case study for resilience building and linked the Kingdom’s progress to one of the strongest global improvements in the Human Resources and Labour Market pillar since 2019. Still, WEF’s broader caution on workforce shortages and skills gaps is relevant for investors assessing operator readiness, training costs, and the ability to adopt digital and AI-driven change.