Saudi POS Spending Tops $3bn as Hajj Travel Boosts Hotel Sector
RIYADH: The Kingdom's total point-of-sale transactions reached SR12.1 billion in the week ending April 25, with a significant surge in hotel sector receipts.
The latest data from the Saudi Central Bank indicates that the Kingdom's total point-of-sale (POS) transactions amounted to SR12.1 billion ($3.2 billion) during the week ending April 25, reflecting a notable increase driven by a 40.3 percent surge in hotel spending to SR331.9 million alongside a 20.9 percent rise in the number of transactions to 859,000.
This growth can be attributed to the ongoing Hajj pilgrimage season, which has been marked by the arrival of pilgrims from major countries such as Pakistan, India, and Turkey since mid-April.
The Saudi Cabinet, led by Crown Prince Mohammed bin Salman during its April 21 session, directed that all available resources and capabilities should be utilized to ensure the success of the organizational, security, and preventative plans for this year's Hajj season.
The influx of pilgrims has had a significant impact on retail spending in Makkah, where POS transactions increased by 28.5 percent during the monitored week.
While overall POS spending experienced a decline of 1.9 percent compared to the previous week, this marked improvement indicates the positive effects of Hajj travel on the economy.
During the seven-day period ending April 25, the total number of POS transactions reached 225.2 million.
In addition to hotels, other sectors also demonstrated growth, including a 4.6 percent increase in airline spending to SR43.2 million and an 11.7 percent rise in freight transport and courier services to SR45 million.
However, certain segments experienced declines, such as food and beverage spending, which fell by 4.8 percent to SR1.9 billion and accounted for the largest share of POS transactions.
Restaurant and cafe expenditures followed suit, decreasing by 3.1 percent to SR1.61 billion.
Apparel and clothing spending showed a minor decrease of 0.5 percent, representing the third-largest share of POS activity during the monitored week.
Riyadh, which accounted for the highest share of total POS spending, witnessed a 2.6 percent decline to SR4.26 billion.
In Jeddah, transaction values decreased by 0.6 percent to SR1.68 billion, and Dammam reported a 3.1 percent decline to SR630.4 million.
SAMA's weekly POS data serves as an indicator of consumer spending trends and the growing adoption of digital payments in Saudi Arabia.
This growth aligns with the Vision 2030 objectives, promoting electronic transactions and contributing to the Kingdom's broader digital economy through expanding POS infrastructure, which now extends beyond major retail hubs to smaller cities and service sectors, supporting initiatives for digital inclusion.
This growth can be attributed to the ongoing Hajj pilgrimage season, which has been marked by the arrival of pilgrims from major countries such as Pakistan, India, and Turkey since mid-April.
The Saudi Cabinet, led by Crown Prince Mohammed bin Salman during its April 21 session, directed that all available resources and capabilities should be utilized to ensure the success of the organizational, security, and preventative plans for this year's Hajj season.
The influx of pilgrims has had a significant impact on retail spending in Makkah, where POS transactions increased by 28.5 percent during the monitored week.
While overall POS spending experienced a decline of 1.9 percent compared to the previous week, this marked improvement indicates the positive effects of Hajj travel on the economy.
During the seven-day period ending April 25, the total number of POS transactions reached 225.2 million.
In addition to hotels, other sectors also demonstrated growth, including a 4.6 percent increase in airline spending to SR43.2 million and an 11.7 percent rise in freight transport and courier services to SR45 million.
However, certain segments experienced declines, such as food and beverage spending, which fell by 4.8 percent to SR1.9 billion and accounted for the largest share of POS transactions.
Restaurant and cafe expenditures followed suit, decreasing by 3.1 percent to SR1.61 billion.
Apparel and clothing spending showed a minor decrease of 0.5 percent, representing the third-largest share of POS activity during the monitored week.
Riyadh, which accounted for the highest share of total POS spending, witnessed a 2.6 percent decline to SR4.26 billion.
In Jeddah, transaction values decreased by 0.6 percent to SR1.68 billion, and Dammam reported a 3.1 percent decline to SR630.4 million.
SAMA's weekly POS data serves as an indicator of consumer spending trends and the growing adoption of digital payments in Saudi Arabia.
This growth aligns with the Vision 2030 objectives, promoting electronic transactions and contributing to the Kingdom's broader digital economy through expanding POS infrastructure, which now extends beyond major retail hubs to smaller cities and service sectors, supporting initiatives for digital inclusion.
