Kuwaitis Travel More, Spend More: Tourism Booms in 2023
KUWAIT CITY, KUWAIT: The Central Bank of Kuwait (CBK) released its preliminary balance of payments data for 2023. Outlines both positive trends in the travel sector and areas requiring economic focus.
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Travel Spending on the Rise:
Kuwaiti citizens exhibited a strong propensity for travel in 2023, with expenditures reaching 4.39 billion dinars – a significant 9.2% increase compared to 2022. This growth is likely fueled by the introduction of new travel destinations, expanded airline family-friendly packages, and participation in regional events like the Riyadh Season.
Positive Inflow of Tourism Dollars:
Foreign tourist spending in Kuwait mirrored the outbound trend, experiencing a noteworthy surge of approximately 60%. By year-end 2023, foreign tourists had contributed 533.3 million dinars to Kuwait’s economy, compared to 332.6 million dinars in 2022.
Trade Surplus Contracts:
Kuwait’s merchandise exports experienced a 16% decline, reaching 23.9 billion dinars in 2023 compared to 28.79 billion dinars in 2022. Conversely, imports witnessed a marginal increase of 16.8%, rising to 10.1 billion dinars from 8.6 billion dinars in 2022.
Overall Balance of Payments Shifts:
The CBK data revealed a surplus in the current account of approximately 15.8 billion dinars for 2023. However, this figure represents a decrease from the prior year’s surplus of 19.3 billion dinars, primarily due to a decline in the merchandise balance surplus and an increase in the services account deficit.
Consequently, Kuwait’s overall balance of payments for 2023 shifted to a deficit of roughly 150.2 million dinars, compared to a surplus of approximately 1.1 billion dinars in 2022.
The CBK’s report highlights the need for strategic initiatives to address the decline in export revenue and remittance flows, while capitalizing on the positive momentum in the travel sector. These efforts will be crucial in ensuring Kuwait’s economic stability and growth in the coming years, reported Arab Times.
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