Saudi travel bookings surge in early 2025 with growth in regional demand: report

Saudi travel bookings surge in early 2025 with growth in regional demand: report
Popular regional destinations for Saudi travelers included Dubai, Doha, Cairo, and Manama. Getty
Short Url
Updated 1 min 20 sec ago
Follow

Saudi travel bookings surge in early 2025 with growth in regional demand: report

Saudi travel bookings surge in early 2025 with growth in regional demand: report

RIYADH: Saudi travel bookings surged in the first quarter, 2025, with regional demand up 14 percent driven by mobile-first convenience, flexible payments, and value-focused accommodations, a new report showed. 

Released by Almosafer, a Saudi travel firm under Seera Group, the report also highlighted a rise in international bookings, with a 11 percent year-on-year increase. 

Domestic reservations grew by 4 percent annually, along with strong expansion in the Middle East and North Africa region and long-haul international travel. 

The findings reflect a shift in Saudi travelers’ preferences, as they increasingly explore both local and global destinations, with a growing emphasis on adaptability, ease of booking, and affordability. 

This comes as Saudi Arabia’s airports handled 128 million passengers in 2024, a 45.8 percent increase since the launch of Vision 2030 in 2016, according to the Kingdom’s latest annual report on the initiative.  

Muzzammil Ahussain, CEO at Almosafer, said: “The continued growth in travel demand across domestic, regional, and international markets reflects a robust appetite and confidence for exploration among Saudi travelers.” 

He added: “We’re seeing a clear shift toward value, flexibility, and personalized experiences, whether it’s through choosing alternative accommodations, mixing and matching flight options, or leveraging mobile-first payment methods like Apple Pay and flexible options like buy now, pay later.” 

The report noted that flight bookings grew across all markets, with the MENA region leading at a 12 percent increase, while international flights rose by 5 percent.  

Room nights booked for domestic stays surged by 14 percent, and international trips climbed 13 percent.  

Saudi travelers are benefiting from a wave of local tourism initiatives and enhanced international airline connectivity. 




Cairo proved a popular destination for Saudi travelers. Shutterstock

Government-backed events and infrastructure projects are fueling domestic exploration, while expanded flight routes and eased visa policies are making global travel more accessible. 

Almosafer noted that the strong demand for domestic stays was fueled by a growing range of events and unique experiences within the Kingdom.  

Payment preferences shifted notably, with BNPL options representing 25 percent of all bookings, up from 14 percent the previous year, the findings showed.  

Popular regional destinations for Saudi travelers included Dubai, Doha, Cairo, and Manama. 

For longer-haul travel, Istanbul, London, Paris, and Phuket remained top choices, while newer destinations like Bangkok, Amman, and Milan as well as Moscow, Madrid, and Prague also gained traction. 

Domestically, cities such as Makkah, Jeddah, and Riyadh, as well as Alkhobar, and Madinah dominated, alongside rising interest in Taif, AlUla, and the Red Sea, the report showed. 

Saudi traveler profiles also evolved, with solo travelers representing 53 percent of flight segments, particularly toward long-haul destinations.  

Family trips major driver

Family travel accounted for 16 percent of flight segments but saw a 23 percent increase in the average trip length within the MENA region.  

Families were a major driver behind the 22 percent rise in domestic stays, while solo traveler stays beyond the region grew by 23 percent. 

In the air travel segment, full-service carriers grew in the domestic market by 24 percent year on year, while low-cost carriers saw a 6 percent decline.  

Within the MENA region, both full-service and low-cost carriers experienced growth. For international long-haul travel, low-cost carrier volumes surged by 35 percent amid the launch of new routes, even as full-service carrier volumes fell by 8 percent. 

Booking flexibility became a notable trend, with 24 percent of travelers opting to mix and match airlines for round-trip journeys.  

Accommodation preferences also diversified, with more than 75 percent of room nights booked in 4- and 5-star hotels.  

However, 3-star and below properties saw a 12 percent rise in international bookings, and bookings for serviced apartments and holiday homes increased by 15 percent in the MENA region and 21 percent beyond, reflecting growing demand for value-driven options. 

Alternative accommodations accounted for 8 percent of total room nights, offering an average 37 percent savings per night compared to hotel stays. This shift is particularly evident among international travelers seeking flexibility and affordability. 


Saudia Cargo, Henan Aviation Group ink deal to bolster routes between Riyadh, Zhengzhou

Saudia Cargo, Henan Aviation Group ink deal to bolster routes between Riyadh, Zhengzhou
Updated 31 sec ago
Follow

Saudia Cargo, Henan Aviation Group ink deal to bolster routes between Riyadh, Zhengzhou

Saudia Cargo, Henan Aviation Group ink deal to bolster routes between Riyadh, Zhengzhou

RIYADH: Saudi Arabia and China are strengthening their air cargo cooperation through a new agreement to create a joint freight hub as part of the Air Silk Road initiative.

The deal, inked between Saudia Cargo and Henan Aviation Group, will see new new routes opened between Riyadh and Zhengzhou, according to a statement.

This correlates with the Saudi Aviation Strategy, which recognizes the need to increase air connectivity with key markets such as China as part of the Kingdom’s goal of transporting 4.5 million tonnes of air cargo by 2030.

The statement further highlighted that the agreement aims to “support integrated logistics services and free trade zone development” and “advance sustainability and cross-border e-commerce through logistics innovation.”

It also seeks to explore investment opportunities in the high-tech and aviation sectors in Zhengzhou.

The MoU came during a meeting held by President of the General Authority of Civil Aviation Abdulaziz bin Abdullah Al-Duailej in Riyadh with Henan Province Vice Governor Sun Shougang to bolster investments between the two countries, the Saudi Press Agency reported.

During the discussion, the two sides discussed strengthening economic relations, focusing on fostering high-quality investments for leading firms and empowering the private sector to seize available opportunities. Both parties also explored enhancing Saudi-Chinese air transport in alignment with Vision 2030 and the Saudi Aviation Strategy.

GACA also held a Saudi-Chinese roundtable to explore collaboration opportunities in logistics zones and air cargo. The meeting included the Chairman of China Henan Aviation Group, along with representatives from national carriers and logistics firms.

The roundtable also included various Saudi government entities, such as the Ministry of Energy, the Ministry of Investment, and the Ministry of Transport and Logistic Services, as well as the Saudi General Authority of Foreign Trade, the Economic Cities and Special Zones Authority, the Industrial Center, and the Air Connectivity Program.
 
The Chinese delegation conducted a field visit to the Special Integrated Logistics Zone in Riyadh and the cargo zones at King Abdulaziz International Airport in Jeddah, where they observed operational capabilities, cargo-handling facilities and zones, e-commerce shipments, and the digital capabilities and mechanisms in use.

The delegation also visited King Khalid International Airport in Riyadh, where they toured the Airport Operations Control Center to observe the services provided as well as explored the commercial areas, and duty-free store.
 
China’s COSCO Shipping unveils Dammam office

Chinese company COSCO Shipping has launched its first office in the Kingdom in Dammam in an attempt to enhance operational efficiency and logistical connectivity.

This move also strengthens the firm’s partnership with the Saudi Ports Authority, or Mawani, supports trade growth, and achieves the goals of the nation’s Vision 2030 of consolidating the Kingdom’s position as a global logistics hub.
 
Saudi NHC continues house building deal with Chinese firm

Saudi Arabia’s National Housing Co. has extended its partnership with China State Construction Engineering Corporation, which aims to build 20,000 housing units within NHC destinations.

The partnership has been realized through the launch of multiple projects across NHC sites in the Eastern Region, Riyadh, and Jeddah, delivering over 3,800 housing units.

It comes as an extension of the Saudi-Chinese partnership series and several agreements signed with Chinese firms during the official visit to China by Minister Al-Hogail and NHC CEO Mohammed bin Saleh Al-Buty.

NHC stated that the partnership extends its efforts to enhance the real estate supply and inject more housing units through quality partnerships with major international companies to establish urban destinations with high-quality standards across the Kingdom.


Saudi Aramco lowers propane, butane prices for May

Saudi Aramco lowers propane, butane prices for May
Updated 51 min 56 sec ago
Follow

Saudi Aramco lowers propane, butane prices for May

Saudi Aramco lowers propane, butane prices for May

RIYADH: Saudi Aramco has reduced its official selling prices for propane and butane for May 2025, according to a company statement issued on Tuesday.

The price of propane was cut by $5 per tonne to $610, while butane saw a steeper reduction of $15 per tonne, bringing it to $590. The adjustments reflect shifts in market conditions and follow a downward trend from the previous month.

Propane and butane, both classified as liquefied petroleum gas, are widely used for heating, as vehicle fuel, and in the petrochemical industry. Their differing boiling points make each suitable for distinct industrial and domestic applications.

Aramco’s LPG prices are considered key benchmarks for supply contracts from the Middle East to the Asia-Pacific region.

The global LPG market is undergoing a significant shift as steep tariffs on US imports prompt Chinese buyers to replace American cargoes with supplies from the Middle East.

Meanwhile, US shipments are being redirected to Europe and other parts of Asia.

This realignment is expected to put downward pressure on prices and demand for shale gas byproducts, posing financial challenges for both US shale producers and Chinese petrochemical companies. At the same time, it is likely to drive increased interest in alternative feedstocks such as naphtha.

Middle Eastern suppliers are emerging as key beneficiaries, filling the gap left by reduced US exports to China. In addition, opportunistic buyers in Asian markets like Japan and India are capitalizing on the price drops to secure more favorable deals.


Trump to reduce impact of auto tariffs, commerce secretary says

Trump to reduce impact of auto tariffs, commerce secretary says
Updated 29 April 2025
Follow

Trump to reduce impact of auto tariffs, commerce secretary says

Trump to reduce impact of auto tariffs, commerce secretary says

WASHINGTON: President Donald Trump’s administration will move to reduce the impact of his automotive tariffs on Tuesday by alleviating some duties imposed on foreign parts in domestically manufactured cars and keeping tariffs on cars made abroad from piling on top of other ones, officials said.

“President Trump is building an important partnership with both the domestic automakers and our great American workers,” Commerce Secretary Howard Lutnick said in a statement provided by the White House.

“This deal is a major victory for the President’s trade policy by rewarding companies who manufacture domestically, while providing runway to manufacturers who have expressed their commitment to invest in America and expand their domestic manufacturing.”

The Wall Street Journal, which first reported the development, said the move meant car companies paying tariffs would not be charged other levies, such as those on steel and aluminum, and that reimbursements would be given for such tariffs that were already paid.

A White House official confirmed the report and indicated the move would be made official on Tuesday.

Trump is traveling to Michigan on Tuesday to commemorate his first 100 days in office, a period that the Republican president has used to upend the global economic order.

The move to soften the effects of auto levies is the latest by his administration to show some flexibility on tariffs, which have sown turmoil in financial markets, created uncertainty for businesses and sparked fears of a sharp economic slowdown.

Automakers said earlier on Monday they were expecting Trump to issue relief from the auto tariffs ahead of his trip to Michigan, which is home to the Detroit Three automakers and more than 1,000 major auto suppliers.

General Motors, CEO Mary Barra and Ford CEO Jim Farley praised the planned changes. “We believe the president’s leadership is helping level the playing field for companies like GM and allowing us to invest even more in the US economy,” Barra said.

Farley said the changes “will help mitigate the impact of tariffs on automakers, suppliers and consumers.”

Last week, a coalition of US auto industry groups urged Trump not to impose 25 percent tariffs on imported auto parts, warning they would cut vehicle sales and raise prices.

Trump had said earlier he planned to impose tariffs of 25 percent on auto parts no later than May 3.

“Tariffs on auto parts will scramble the global automotive supply chain and set off a domino effect that will lead to higher auto prices for consumers, lower sales at dealerships and will make servicing and repairing vehicles both more expensive and less predictable,” the industry groups said in the letter.

The letter from the groups representing GM, Toyota Motor, Volkswagen, Hyundai and others, was sent to US Trade Representative Jamieson Greer, Treasury Secretary Scott Bessent and Commerce’s Lutnick.

“Most auto suppliers are not capitalized for an abrupt tariff induced disruption. Many are already in distress and will face production stoppages, layoffs and bankruptcy,” the letter added, noting “it only takes the failure of one supplier to lead to a shutdown of an automaker’s production line.” 


IMF Executive Board to meet on May 9 to review Pakistan’s loan programs

IMF Executive Board to meet on May 9 to review Pakistan’s loan programs
Updated 29 April 2025
Follow

IMF Executive Board to meet on May 9 to review Pakistan’s loan programs

IMF Executive Board to meet on May 9 to review Pakistan’s loan programs
  • IMF board’s approval of staff-level agreement with Pakistan will pave the way for disbursement of $1 billion
  • Islamabad also secured a new loan program with IMF in March to help build resistance against natural disasters 

KARACHI: The International Monetary Fund’s (IMF) Executive Board will meet on May 9 to review its staff-level agreement with Pakistan for an ongoing $7bn bailout program and a new climate resilience loan scheme with Islamabad, the global lender said on its website recently. 

The IMF reached a staff-level agreement with Pakistan in March on the first review of the country’s Extended Fund Facility (EFF) and a new $1.3 billion loan arrangement under the Resilience and Sustainability Facility (RSF). Pakistan secured the EFF program last year and deems it crucial to escape a prolonged economic crisis. The staff-level agreement, once approved by the IMF Executive Board, will pave the way for an immediate disbursement of about $1 billion for Pakistan.

The RSF, on the other hand, will support Pakistan’s efforts in building resilience to natural disasters, enhancing budget and investment planning to promote climate adaptation, improve the efficient and productive use of water. It will also help in strengthening Pakistan’s climate information architecture to improve the disclosure of climate risks and align energy sector reforms with mitigation targets.

“May 9, 2025, Pakistan-first review under the extended arrangement under the Extended Fund Facility, request for Modification of Performance Criteria, and request for an arrangement under the Resilience and Sustainability Facility,” the IMF wrote on its website on Friday, disclosing its Executive Board’s schedule. 

Pakistan has been prone to natural disasters and consistently ranks among the most severely affected countries in the world due to climate change effects. Unusually heavy rains and melting of glaciers in 2022 triggered flash floods across the country, killing over 1,700 people and inflicting losses over $33 billion. 

The IMF program has played a key role in stabilizing Pakistan’s battered economy, which has made some gains in recent months, most notably a reduced inflation rate. The government has said the country is on course for a long-term recovery, while Finance Minister Muhammad Aurangzeb has vowed Islamabad will continue to implement financial reforms mandated by the international lender. 

Pakistan secured the $7 billion loan program in September 2024 as it attempted to consolidate its economy since averting a default in 2023. Islamabad has since undertaken several reforms to reduce public debt, maintain low inflation, improve energy sector viability, and accelerate growth.

Pakistan hopes to achieve further economic progress by increasing its exports and attracting foreign investment from regional allies, particularly the Gulf countries. Islamabad has signed memoranda of association (MoUs) regarding trade and investment worth billions of dollars with Saudi Arabia, the United Arab Emirates, Azerbaijan, China and other countries in recent months. 


Oil Updates — crude falls as economic jitters dampen demand outlook

Oil Updates — crude falls as economic jitters dampen demand outlook
Updated 29 April 2025
Follow

Oil Updates — crude falls as economic jitters dampen demand outlook

Oil Updates — crude falls as economic jitters dampen demand outlook

SINGAPORE: Crude oil prices fell on Tuesday as investors lowered their demand growth expectations due to the ongoing trade war between the US and China, the world’s two biggest economies.

Brent crude futures fell by 78 cents, or 1.18 percent, to $65.08 per barrel by 10:49 a.m. Saudi time. US West Texas Intermediate crude futures fell 75 cents, or 1.21 percent, to $61.30 a barrel. Both benchmarks fell more than $1 on Monday.

“Markets are closely monitoring the US-China trade negotiations, understanding that deteriorating trade relations between the world’s two largest economies could lead the global economy toward a recession,” said Priyanka Sachdeva, senior market analyst at Phillip Nova.

“The lack of confidence in future demand and the absence of concrete signals for demand revival in mainland China will continue to overshadow oil prices.”

US President Donald Trump’s push to reshape world trade by imposing tariffs on all US imports has created a high risk that the global economy will slip into a recession this year, according to a majority of economists in a Reuters poll.

China, hit with the steepest of those tariffs, has responded with its own levies against US imports, stoking a trade war between the top two oil consuming nations. That has prompted analysts to sharply lower their oil demand and price forecasts.

Barclays on Monday cut its 2025 Brent crude price forecast by $4 to $70 a barrel, citing elevated trade tensions and a pivot in production strategy by the OPEC+ group as drivers of a 1 million barrel per day oil supply surplus this year.

Meanwhile, several members of OPEC+, which comprises the Organization of the Petroleum Exporting Countries and its allies, will suggest an acceleration of output hikes for a second consecutive month in June, sources told Reuters last week.

“A substantial (oil) price decrease appears probable if exporting countries boost production,” oil analyst Philip Verleger said in a note.

US crude oil stockpiles also likely rose by about 500,000 barrels in the week ended April 15, according to a preliminary Reuters poll of analysts on Monday.

Industry group American Petroleum Institute will publish its estimates on US oil inventories on Tuesday. Official figures from the Energy Information Administration will follow on Wednesday.