Kuwaitis shell out 4.39 billion dinars on travel in 2023

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KUWAIT CITY, April 29: The Central Bank of Kuwait has released data indicating a substantial increase in Kuwaitis’ spending on tourism and travel during 2023. According to preliminary figures from Kuwait’s balance of payments for the previous year, expenditures in this sector saw a notable growth of 9.2%, soaring to 4.39 billion dinars. This marks a significant rise from the 4 billion dinars recorded in 2022.

The surge in spending is attributed to various factors, including the introduction of new travel destinations in Europe and other countries, alongside expanded offerings from airlines catering to family travel throughout the year. Additionally, heightened interest in attending events such as the Riyadh Season and other festivities organized by the Saudi Tourism Authority contributed to the uptick in travel expenditures among Kuwaiti nationals.

Last year’s spending on travel by Kuwaiti citizens reached its peak since the onset of the COVID-19 pandemic. Data reveals a breakdown of expenditures across the four quarters of 2023, with the first quarter accounting for 1.36 billion dinars, followed by 1.01 billion dinars in the second quarter, 1.15 billion dinars in the third quarter, and 870 million dinars in the fourth quarter.

Conversely, spending by foreign tourists within Kuwait witnessed a remarkable increase of approximately 60%, reaching 533.3 million dinars by the end of 2023, compared to 332.6 million dinars in 2022.

Meanwhile, remittances from expatriates abroad experienced a steady decline throughout the year, dropping by 28.5% to 3.86 billion dinars in 2023, down from 5.4 billion dinars in 2022. This decline is attributed to various factors, including a reduction in the expatriate population within Kuwait and economic challenges faced by several Arab and Asian countries.

In terms of trade, Kuwait observed a 16% decrease in merchandise exports, falling to 23.9 billion dinars in 2023 from 28.79 billion dinars in 2022. Imports, however, saw an uptick, rising to 10.1 billion dinars from 8.6 billion dinars in 2022, marking a 16.8% increase.

The Central Bank of Kuwait released preliminary data for the balance of payments of the State of Kuwait for 2023, highlighting a surplus in the current account amounting to approximately 15.8 billion dinars. This represents a decrease from the previous year’s surplus of about 19.3 billion dinars, primarily attributed to a decline in merchandise balance surplus and an increase in the services account deficit.

Overall, Kuwait’s balance of payments in 2023 recorded a deficit of about 150.2 million dinars, in contrast to a surplus of about 1.1 billion dinars in the previous year.

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