Hotel expenses accrued from lodging establishments contribute significantly to Point of Sale (POS) transactions in Saudi Arabia, amassing a total of $3.5 billion.

Hotel expenses accrued from lodging establishments contribute significantly to Point of Sale (POS) transactions in Saudi Arabia, amassing a total of $3.5 billion.

In the week ending July 12, 2021, hotel spending in Saudi Arabia saw a significant increase of 8 percent, reaching a transaction value of SR281.56 million, with the number of payments rising by 4.6 percent to 839,000[1]. However, overall point-of-sale (POS) transaction value fell by 8.2 percent that week, totaling SR13.12 billion ($3.5 billion), and the total number of transactions dropped 3 percent to 223.57 million[1].

Despite the rise in hotel spending, most other major spending sectors in Saudi Arabia experienced declines during the same period.

• The education sector experienced the largest decrease, dropping 27.6 percent to SR102.21 million.
• Miscellaneous goods and services spending decreased 15.6 percent to SR1.51 billion, though it remained the third-largest category by POS value.
• Restaurants and cafes spending declined 1.7 percent to SR1.92 billion but still held the largest share of total POS value.
• The food and beverages sector saw a 13 percent decrease, down to SR1.84 billion, which was the second-largest share of POS spending that week.

Together, the top three categories (restaurants and cafes, food and beverages, and miscellaneous goods and services) accounted for approximately 40.2 percent of total spending for that week[1].

Furthermore, Jeddah's expenses decreased by 7.9 percent to SR1.89 billion, and Riyadh's POS transactions decreased by 8.1 percent to SR4.47 billion**. Makkah experienced the smallest decrease, inching down 1.1 percent to SR530.71 million. Abha's spending decreased by 3.6 percent to SR209.73 million, and Hail recorded 5.3 percent fewer transactions with 3.99 million deals.

Spending on clothing and footwear dipped by 7.3 percent to SR827.14 million, and expenditure on transportation decreased by 6.9 percent. Gas stations experienced a 2.6 percent decrease in spending, totaling SR948.99 million. Spending on building materials decreased by 3.7 percent to SR330.83 million. The health sector decreased by 7.6 percent to SR805.09 million.

In contrast, Dammam's spending decreased by 7.9 percent to SR626.13 million, and the number of payments in the sector rose 4.6 percent to 839,000. The top three categories accounted for approximately 40.2 percent of the week's total spending, amounting to SR5.28 billion[1].

[1] Source: Unspecified [2] Source: Unspecified

1. The economy of Saudi Arabia saw a notable drop in spending in various sectors in the week ending July 12, 2021, with the education sector experiencing the largest decrease of 27.6 percent.
2. Apart from hotel spending, which saw a significant 8 percent increase, other major spending sectors, such as restaurants and cafes, food and beverages, and miscellaneous goods and services, experienced declines.
3. While Jeddah and Riyadh showed a decrease in their POS transactions, the city of Makkah experienced the smallest decrease at 1.1 percent, and Dammam also recorded a decrease in spending of 7.9 percent.
4. The health sector, along with clothing and footwear, transportation, gas stations, and building materials, all experienced reductions in spending during this period. Health spending decreased by 7.6 percent to SR805.09 million.
5. Business sectors like retail, entertainment, and services, as indicated by the transactions and values at point-of-sale (POS), faced overall economic contraction, with the total POS transaction value decreasing by 8.2 percent that week.

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