In the year 2024, the Kingdom of Saudi Arabia welcomed over 18.5 million visitors who travelled specifically for religious tourism purposes. The country holds a unique and influential position on both the global spiritual stage and within the international economic landscape, chiefly as the custodian of Islam’s two holiest sites — Mecca and Medina. Every year, millions of Muslims from around the world gather in Saudi Arabia to participate in the Hajj and Umrah pilgrimages, which have become enduring and vital pillars of the nation’s economy.Â
Traditionally associated with faith, hospitality, and a well-established pilgrimage infrastructure, this sector has never been left to grow organically; efforts have always been made, and continue to be made, to ensure improvement through investments and innovation. The industry is now experiencing a significant period of transformation. Advancements in technology are propelling this change, as are broader strategies aimed at diversifying the economy and a growing emphasis on enhancing global competitiveness.
On a personal note, my fascination with Saudi Arabia and lessons about its bureaucracy, economy and politics was stimulated as a young boy by my late father, HRB Kila, who amongst other things he did, oversaw Hajji operations for the country as a member of the task force in the seventies and later, by my Uncle, Dr Olu Owolabi who as an aviation manager gave me the privilege of watching him managing hajj operations for his company in the late 80s.
Today, we will explore the continued influence of religious tourism on the Saudi economy and how it is shaping the nation’s development, weaving together its rich heritage with innovative modern advancements. Furthermore, we will reflect on the valuable lessons that other countries, offshore, can learn from their approach and ongoing development in this vital sector.
The first lesson to be learnt is on how faith can serve as a powerful catalyst for economic growth. In Saudi Arabia, religious tourism largely revolves around the sacred pilgrimage rites of Hajj and Umrah, both of which are deeply ingrained in Islamic tradition and obligation. Hajj, which is performed annually, and Umrah, a pilgrimage that can be undertaken throughout the year, collectively draw approximately 20 million pilgrims each year. In this context, it becomes evident how these religious journeys can significantly contribute to the nation’s economy through various channels, including transportation (such as airlines, trains, and buses), hotel and guesthouse accommodations, and the retail sector, which benefits from the sale of souvenirs, clothing, and foodstuffs. Additionally, religious and cultural services, including guides, translators, and scholars, play a vital role in enriching the pilgrims’ experience and generating revenue. Two things are worth noting here. One is that this religious activity is conducted without subsidy from government funds; furthermore, despite Saudi Arabia’s considerable oil wealth, the country has consistently recognised tourism as a vital and sustainable source of revenue for its economic diversification strategy.
In fact, the country’s Vision 2030 emphasises economic diversification. With oil revenues vulnerable to global price fluctuations, Saudi Arabia’s Vision 2030 — a strategic plan led by Crown Prince Mohammed bin Salman — prioritises religious tourism as a central element of its diversification strategy. The country’s officials have set key targets, including increasing the number of Umrah visitors from eight million to 30 million annually by 2030, improving pilgrimage infrastructure and logistics, simplifying visa procedures through the Saudi eVisa platform, and promoting year-round tourism in the holy cities and surrounding areas. In this context, religious tourism is not solely a cultural obligation but has been reimagined as an industry. Significant investments are being made in smart infrastructure, transport networks, and hospitality innovation, including luxury hotels and digital service platforms.
The core of this vision lies in pioneering advancements within Pilgrimage Management. Saudi Arabia has embraced state-of-the-art technology to effectively oversee the complexities associated with managing large-scale pilgrimages. These technological innovations encompass various systems, such as sophisticated IT-driven crowd control mechanisms designed to prevent stampedes and ensure safety, as well as Smart ID wristbands for pilgrims that securely store health and personal identification data. Additionally, there are mobile applications offering real-time navigation, prayer times, and emergency assistance, alongside contactless payment methods and digital health passports introduced during the COVID-19 pandemic. These cutting-edge solutions not only guarantee enhanced safety and operational efficiency but also endeavour to enrich the spiritual and emotional journey of pilgrims. They seamlessly integrate modern technology with cherished traditions, creating a harmonious balance between innovation and faith.
Yes, your guess is correct, the socio-economic ripple effects of Saudi Arabia’s approach to religious tourism are far-reaching and multifaceted. The benefits extend well beyond the religious sites of Mecca and Medina, positively impacting various sectors of the economy and society. For instance, there has been a substantial creation of jobs across diverse fields such as construction, transportation, and hospitality services. Additionally, the sector has empowered small businesses and local artisans, fostering entrepreneurial spirit and cultural preservation.
Religious tourism in Saudi Arabia exemplifies a unique and complex fusion of faith and economic development, tradition and modernisation. As the nation charts a course towards a future less dependent on oil, it is increasingly utilising its rich spiritual and religious heritage as a catalyst for innovation, international engagement, and economic diversification.
When managed with sustainability and cultural sensitivity at the forefront, this sector has the potential to remain a vital pillar of the Saudi economy.
Furthermore, and more importantly for us offshore, it could serve as an exemplary model demonstrating how deeply rooted sacred traditions can evolve and adapt in harmony with contemporary aspirations and global trends, fostering a balance between reverence for the past and a forward-looking approach.
Saudi Arabia’s social oil is rooted in religious tourism, which has historically been a significant source of revenue for the country. However, there is nothing to prevent others from imagining and developing alternative forms of socially driven tourism that could also generate substantial wealth and create numerous employment opportunities. By diversifying the tourism sector beyond religious and physical sites, any country can unlock new economic potential and foster sustainable growth.
Join me @anthonykila, if you can, to continue these conversations.
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Anthony Kila is a Jean Monnet professor of Strategy and Development. He is currently Institute Director at the Commonwealth Institute of Advanced and Professional Studies, CIAPS, Lagos, Nigeria. He is a regular commentator on the BBC and he works with various organisations on International Development projects across Europe, Africa and the USA. He tweets @anthonykila, and can be reached at anthonykila@ciaps.org
