• Rising costs of international travel, including airfare and accommodation, encourage citizens to reduce the number of their trips or seek closer, less expensive destinations.
Official financial data from the Central Bank of Kuwait revealed that Kuwaiti spending on travel in the first quarter of 2024 reached approximately KD 1.161 billion, marking a 14.6% decline year-on-year compared to KD 1.36 billion in the same period of 2023. However, travel spending saw a significant increase of KD 296.3 million, or 34.23%, compared to the last quarter of 2023, when expenditures totaled KD 865.4 million, according to Al Anba newspaper.
Kuwaiti travel spending typically decreases significantly during the last and first quarters of each year. This decline is attributed to changing seasonal travel patterns, especially with improved weather and cooler temperatures in Kuwait during the winter.
Many citizens prefer to stay in the country rather than travel abroad and as a result, spending on foreign trips decreases, with local entertainment becoming more attractive in these months
Additionally, rising costs of international travel, including airfare and accommodation, encourage citizens to reduce the number of their trips or seek closer, less expensive destinations.
However, it was notable that citizens’ preferences shifted in the first quarter of 2024, which saw a remarkable 34.23% increase in travel spending.
Remittances by expatriates
According to the latest balance of payments data for Kuwait, total remittances by expatriate workers in the first quarter of 2024 amounted to approximately KD 924.2 million, compared to KD 1.22 billion in the same period of 2023, marking a 24.2% decrease. On a quarterly basis, however, remittances saw an increase of over 4% compared to KD 887.5 million in the last quarter of 2023.
Workers’ remittances abroad began to improve significantly after a decline during the second quarter of last year, when they recorded KD 892.1 million, followed by KD 867.1 million in the third quarter and KD 887.5 million in the last quarter. On an annual basis, workers’ remittances from the first quarter of 2023 until the end of the first quarter of 2024 totaled KD 4.79 billion.
Kuwait’s current account surplus soars in Q1 2024
The current account of the State of Kuwait recorded a surplus of KD 3.4 billion in the first three months of this year, representing an increase of about 4.3% compared to the surplus of KD 3.26 billion achieved in the first quarter of 2023. In the previous quarters of 2023, the current account recorded surpluses of KD 4.11 billion in the fourth quarter, KD 4.18 billion in the third quarter, and KD 4.22 billion in the second quarter.
The commodity balance recorded a surplus of KD 3.5 billion in the first quarter of 2024, a decrease of about 12% compared to approximately KD 4 billion in the first quarter of 2023.
Commodity exports (FOB) totaled KD 6 billion by the end of the first quarter of 2024, down 9% from KD 6.6 billion during the same period in 2023. Oil exports amounted to KD 5.56 billion at the end of the first quarter of 2024, representing a decline of 9.2% compared to KD 6.13 billion in the first quarter of 2023.
As for the country’s commodity imports, they totaled KD 2.5 billion during the first quarter of 2024, reflecting a decrease of about 2.7% compared to imports of KD 2.59 billion during the same period in 2023.
The balance of the current and capital account (net lending + net borrowing) reached KD 3.4 billion at the end of the first quarter of this year, marking an increase of about 4.6% compared to KD 3.2 billion at the end of the first quarter of last year.
The total balance of payments recorded a surplus of approximately KD 78.5 million in the first quarter of 2024, a decrease of 87% compared to a surplus of KD 603.2 million during the first quarter of 2023. However, it witnessed an increase of about 1,912% compared to the last quarter of last year, which recorded a surplus of KD 3.9 million.
Visitors splash KD 309 million in Kuwait over six months
Data revealed that visitors to Kuwait spent approximately KD 309 million in the country from October 2023 to the end of March 2024. According to the Central Bank of Kuwait, spending by foreign tourists (non-resident visitors) in Kuwait during the first quarter of 2024 totaled about KD 170.1 million, while their spending during the last quarter of the previous year was KD 138.8 million.
