Hotel spending in Saudi Arabia hits $76.8m in a single week as major events draw visitors

24/04/2025 04:19 AST

As Saudi Arabia's event season ramps up, the hospitality sector is already showing signs of strong performance. During the week of April 13-19, hotel transactions rose notably, signaling a promising start to a period packed with cultural, sports, and entertainment events across the Kingdom.

According to the latest point-of-sale data from the Saudi Central Bank, hotel transactions reached 677,000 during the week-an increase of 2.4 percent compared to the previous week.

The total value of these transactions climbed 2.2 percent to SR295 million ($76.8 million), up from SR288.6 million. Analysts attribute the growth to the influx of domestic tourists and visitors attending high-profile events.

April has proven to be a dynamic month for Saudi Arabia's events calendar. The return of the Formula 1 Saudi Arabian Grand Prix to Jeddah from April 18 to 20 drew global attention, with Oscar Piastri securing a thrilling victory and Jennifer Lopez headlining a star-studded concert. Simultaneously, Dammam hosted the Asian U18 Athletics Championships from April 15 to 18, while the AFC U-17 Asian Cup concluded on April 20.

Cultural programming has also contributed to heightened visitor activity. The Saudi Film Festival, running in Dammam from April 17 to 23, and the ongoing Islamic Arts Biennale in Jeddah are attracting both local and international audiences.

While the hotel industry benefited from this surge in tourism and events, other sectors painted a less optimistic picture. Most consumer-facing industries recorded week-on-week declines in both transaction volume and value.

The restaurant and cafe segment, typically among the most active, experienced a 2.5 percent dip in transaction count to 56.98 million, while spending fell 4.6 percent to SR1.68 billion. Food and beverage outlets saw even steeper declines-transaction volume dropped 3.2 percent and value plunged 9.3 percent to SR1.65 billion.

Retail categories such as clothing and footwear were also affected, with transaction volume down 4.9 percent and spending down 4.2 percent. Electronics and electrical goods followed suit, reporting a 5.5 percent decrease in volume and a 4.8 percent decline in value. The health sector recorded a 5.4 percent drop in transactions and a 2.6 percent decrease in spending.

One bright spot in the consumer landscape was construction and building materials, which saw a modest 1.78 percent increase in transaction value to SR317.1 million, despite a slight 1.25 percent decline in volume.

In contrast, the telecommunications sector faced significant contraction, with a 7.4 percent drop in volume and a sharp 13.8 percent fall in spending. Jewelry sales-often sensitive to seasonal gifting trends-plummeted, recording a 13.3 percent decrease in transaction count and a 17.2 percent drop in value, totaling SR271.4 million.

Regionally, major cities across the Kingdom reported overall declines in spending. Riyadh saw a 1.1 percent drop in transaction volume and a 4.5 percent fall in value, totaling SR4.1 billion. Jeddah's spending declined by 5.7 percent, while Madinah and Dammam experienced drops of 7.7 percent and 6.7 percent, respectively. Other cities, including Tabuk, Hail, and Abha, registered declines ranging from 7.9 percent to 12.5 percent.

Despite a broader slowdown in consumer spending, the hospitality sector stands out as a potential bellwether for the Kingdom's evolving tourism landscape - driven by Vision 2030 and a concerted push to diversify economic activity through entertainment and cultural engagement.