RIYADH: Travel spending in Saudi Arabia jumped 224.6 percent year on year to hit $9.8 billion in the first quarter of 2023 as the Kingdom’s efforts to develop the tourism sector bolstered the enthusiasm of inbound and domestic travelers.
According to the Saudi Central Bank, also known as SAMA, travel expenses abroad rose 7.9 percent to reach $3.7 billion during the first three months of 2023, up from the $3.4 billion recorded in the same period last year.
This growth comes when Saudi residents are increasingly seeking to travel abroad during their official holidays.
The report also revealed that consumer loans for travel and tourism reached $222 million in the first quarter of 2023, up 13.9 percent from the $194 million recorded in the same period a year earlier.
The increased travel spending has resulted from the Kingdom’s push to raise its share of tourism in gross domestic product to 10 percent by 2030.
To achieve this, the Tourism Ministry indicated that Saudi Arabia is investing more than $800 billion in the sector over the next 10 years.
The Kingdom has also facilitated the electronic issuance of tourist visas to attract more inbound travelers, allowing 49 countries to avail themselves of the service.
Rise in transportation spending
The report also indicated that spending on transportation surged 58 percent to reach $1.53 billion during the first quarter of 2023, up from the $974 million recorded in the corresponding period a year earlier.
When it comes to transportation spending abroad, it amounted to $6.54 billion during the first quarter of the year, reflecting a 32.4 percent increase in comparison to the $4.94 billion recorded in the same period in 2022.
With regards to telecommunication spending in Saudi Arabia during the first quarter of 2023, it climbed 1.15 percent to reach $437 million, up from the $432 million recorded in the corresponding period a year ago.
Telecommunications spending abroad also jumped 1.15 percent to reach $558 million, up from the $502 million recorded in the first three months of 2022.
Earlier in March, the UN's International Telecommunication Union revealed that Saudi Arabia ranked second among the G20 countries and fourth globally in its readiness for digital systems.
