Global Tourism Shift: Saudi Arabia Surges to the Top as Israel Ranks Last in Benchmark Report

A major reallocation of global travel capital and visitor footfall has reshaped international tourism. Newly published data evaluating post-pandemic performance across 53 nations reveals a stark geopolitical and economic contrast: Saudi Arabia has recorded the world’s highest growth in international tourist arrivals, surging by 67% compared to pre-pandemic baselines, while Israel recorded the steepest contraction globally, dropping by 71%.

The findings, published in the OECD Tourism Trends and Policies report and analyzed by The Jerusalem Post and Visual Capitalist, underscore how long-term state investment, regulatory easing, and regional stability can catapult emerging destinations into global hubs—and how protracted conflict can abruptly halt a once-thriving travel sector.

Key Data Breakdown: The Post-Pandemic Winners and Losers

The OECD benchmark compared international visitor arrivals across 53 member and partner economies between 2019 (the historical peak for global travel) and 2025. The findings highlight a multi-tier recovery where traditional Western hubs saw modest growth or slight declines, while select destinations in the Middle East, North Africa, and Latin America captured market share.

Saudi Arabia’s Surge: The Vision 2030 Growth Engine

Saudi Arabia’s position at the top of the growth rankings (+67% in arrivals) is not an accidental post-lockdown bounce, but the intended result of a multi-billion-dollar economic diversification roadmap under Vision 2030.

Prior to 2019, leisure tourism in the Kingdom was virtually non-existent for non-religious foreign travelers. The introduction of an instant electronic visa (e-Visa) system for dozens of countries, combined with a total restructuring of aviation and hospitality laws, opened the country’s doors to a global audience.

Institutional Investments and Financial Metrics

According to the Saudi Quality of Life Program’s annual reporting, the hospitality and leisure sectors have delivered measurable economic yields:

• GDP Contribution: The Quality of Life initiatives contributed over SR78 billion to Saudi Arabia’s GDP.
• Employment Creation: More than 387,000 direct and indirect jobs were generated across tourism, urban development, culture, and entertainment.
• Summer Visitor Volume: During peak summer operating periods alone, the Kingdom welcomed over 32 million domestic and international visitors—a 26% year-over-year expansion.
• Tourism Spending: Total visitor expenditure climbed past SR53.2 billion during the summer months, reflecting a 15% surge in yield per visitor.

By promoting a dual focus on historical sites (such as the Nabataean tombs of Hegra in AlUla) and modern luxury initiatives along the Red Sea coast, Saudi Arabia has established a new tourism presence in the Middle East.

Israel’s Tourism Contraction: Geopolitical Crises and Economic Friction

At the opposite end of the OECD spectrum, Israel recorded the sharpest tourism drop among all 53 evaluated markets, with international visitor numbers falling by 71% relative to pre-2019 levels.

Key Factors Behind the Decline

1. Impact of Regional Conflict: The outbreak of war on October 7, 2023, created prolonged regional insecurity. Security advisories issued by global foreign ministries severely reduced group travel, pilgrimage tours, and corporate visits.
2. Aviation and Connectivity Disruptions: Major international airlines suspended direct routes to Ben Gurion Airport (TLV) repeatedly due to security conditions. Reduced flight availability increased ticket prices and constrained incoming seat capacity.
3. Insurance and Travel Logistics: Insurance providers imposed strict war-risk surcharges or excluded coverage entirely for non-essential travel to the region, making commercial tour operations financially or legally unfeasible.
4. Hotel and Domestic Realignment: Numerous hotels across Tel Aviv, Jerusalem, Tiberias, and Eilat redirected room inventories toward housing internally displaced citizens rather than foreign tourists, altering the commercial hospitality ecosystem.

“For three consecutive years, Israel’s incoming travel market has navigated severe uncertainty, creating what industry operators describe as an unprecedented operational challenge,” reported The Jerusalem Post.

Regional Dynamics: The Broad Middle East Rebalancing

The OECD data reflects a wider shift across North Africa and the broader Middle East. While Israel suffered significant losses, neighboring destinations captured substantial international demand:

• Morocco (+53%): Expanded air connectivity with Western Europe and capitalized on post-pandemic travel trends, emerging as a major African destination.
• Egypt (+47%): Strengthened its position through resort expansion along the Red Sea, infrastructure upgrades near the Giza plateau, and competitive currency valuation.
• Turkey (+21%): Maintained its appeal as a global transit and leisure hub through Istanbul Airport and coastal resorts.

Global Divergence: Europe and the Americas

Outside the Middle East, performance varied significantly across major global economies.

European Recovery

Europe demonstrated mixed results. Northern and Southern European destinations like Norway (+28%), Serbia (+27%), Denmark (+22%), Portugal (+20%), and Spain (+16%) performed strongly due to active marketing, intra-European leisure travel, and sustainable tourism initiatives.

Conversely, central economic powerhouses experienced slower recoveries:

• Germany (-6%) and Italy (-5%) remained below 2019 levels, impacted by high business travel costs, inflationary pressures, and changing corporate travel policies.
• Ireland (-32%) saw a significant drop, largely driven by severe hotel accommodation bottlenecks and rising domestic operating costs.

North America and Asia-Pacific

• United States (-14%): Long-haul recovery lagged behind domestic tourism growth, compounded by strong dollar valuations that made American travel expensive for foreign visitors.
• Japan (+34%): Experienced a surge in international visitors once borders reopened, aided by a favorable yen exchange rate and strong cultural draw.

Looking Ahead: Long-Term Market Implications

The contrast between Saudi Arabia’s expansion and Israel’s contraction illustrates how security, capital deployment, and strategic planning influence global tourism flows.

Saudi Arabia’s continuous capital investment in airport capacity, cruise terminals, hotel developments, and global entertainment events positions the Kingdom as an increasingly central player in global travel.

For Israel, economic recovery in the tourism sector remains tied to regional stabilization, the restoration of full international flight schedules, and targeted efforts to rebuild visitor confidence. While domestic tourism and long-term brand equity in historic sites provide a foundation for future recovery, the OECD benchmark highlights how quickly global travel capital can pivot when conditions change.

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