Hotel expenses fuel Saudi Point of Sale (POS) transactions to reach $3.5 billion
In the week ending July 12, hotel spending in Saudi Arabia experienced a significant increase of 8 percent, reaching SR13.12 billion ($3.5 billion). This growth is part of the Kingdom's ongoing economic transformation as outlined in Saudi Vision 2030, with a focus on boosting tourism and related sectors.
The hotel sector has been a key driver of overall Point of Sale (POS) spending in the Kingdom. By early 2025, Saudi Arabia led the Middle East with 319 hotel projects underway, adding over 85,000 new hotel rooms, indicating strong investment and spending growth in accommodation and hospitality sectors.
While specific data for July 2021 is not readily available, the broader context suggests a continuing upward trend in hotel spending. In 2024 and 2025, the hotel sector's spending contributed to a noticeable increase in overall POS spending, with a recent report showing a 5% POS spending increase in early July 2025 driven by hotels.
Other sectors, however, have seen a different picture. Spending on gas station fuel decreased by 2.6 percent, while expenditure on transportation saw a 6.9 percent decrease. The food and beverages sector, including restaurants and cafes, recorded a 13 percent decrease, totalling SR1.84 billion. Spending on clothing and footwear also dipped by 7.3 percent.
The education sector saw a 27.6 percent decrease in spending, and the furniture sector decreased by 4.9 percent. Abha, Jeddah, and Hail experienced decreases in POS transactions, with Abha recording a 3.6 percent decrease, Jeddah a 7.9 percent decrease, and Hail a 5.3 percent decrease in activity volume.
Despite these decreases, the top three categories accounted for approximately 40.2 percent of the week's total spending, amounting to SR5.28 billion. Makkah saw the smallest decrease, inching down 1.1 percent to SR530.71 million. Dammam's POS transactions ranked third, down 7.9 percent to SR626.13 million.
The overall POS value for the week dipped by 8.2 percent, with the number of transactions dropping by 3 percent to 223.57 million. However, the number of payments in the sector rose 4.6 percent to 839,000.
This economic snapshot underscores the dynamic nature of Saudi Arabia's economy, with the hotel sector playing a pivotal role in its growth. The Kingdom's Vision 2030 reforms and hotel sector expansion have broadly transformed spending patterns in the hospitality industry, even if data from mid-2021 is absent. For more detailed or specific July 2021 data, it would require access to specialized financial or tourism sector reports from that period, as the available public information focuses on 2024–2025 trends.
- The hotel sector's growth in Saudi Arabia, outlined in the Kingdom's Vision 2030, has led to a significant 8 percent increase in hotel spending, reaching SR13.12 billion ($3.5 billion).
- By early 2025, Saudi Arabia will lead the Middle East with 319 hotel projects underway, adding over 85,000 new hotel rooms and indicating strong investment and spending growth in the accommodation and hospitality sectors.
- In contrast, spending on gas station fuel decreased by 2.6 percent, while expenditure on transportation saw a 6.9 percent decrease, and the food and beverages sector recorded a 13 percent decrease.
- The education sector saw a 27.6 percent decrease in spending, and the furniture sector decreased by 4.9 percent, showing a different picture compared to the hotel sector.
- In the week ending July 12, the overall POS value dipped by 8.2 percent, with the number of transactions dropping by 3 percent, but the number of payments in the sector rose 4.6 percent.
- The hotel sector has played a pivotal role in the dynamic nature of Saudi Arabia's economy, transforming spending patterns in the hospitality industry, even though specific data for July 2021 is not readily available.
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