Most Saudi Visa cardholder expenditure takes place in Europe

Closer to home, Egypt and the UAE are increasing in popularity as holiday destinations with Saudi families. With over 40,000 Saudis (90% of those who travel to the US every year- according to Arab News June 4, 2002) cancelling their US trips this year and increased Gulf Arab travel to other Arab countries according to ACE Travel and other reputable travel agencies, with estimated growth between 20% and 30% for Cairo and a modest 5%-10% growth to Dubai for the 2002 holiday season.

Saudi travellers made a total of 647,000 Visa transactions at merchant outlets abroad in the summer of 2001 with a total value of US$ 167.5 million. This was an increase of 7% in transactions and 13% in expenditure at points of sale over the previous year. August was the month when they spent most of their money at shops outside the Kingdom's borders. Spending abroad amounted to US$ 77.5 million during this month last year, which is 17% more than in August 2000.

When looking at the three months of June, July and August, it would also appear that there is an exodus to Europe, particularly in August. Last year Saudi cardholders spent almost half (US$ 35.1 million) of the total summer budget of US$ 77.5 million on the continent and the UK.

France, the UK, Switzerland, Cyprus, Italy and Spain are the most popular destinations in Europe, with Egypt, the UAE and Bahrain being the most visited spots in the Arab World.

Saudis conducted an increasing number of transactions on their Visa cards in France and the United Kingdom during the summer period from June - August 2000 and 2001. With a total of 62,000 transactions equating to US$18 million spent in France during 2001, which is an increase of 49% and 21% respectively over the 2000. In the United Kingdom on the other hand the number of transactions stood at 71,800 equating to US$ 21.3 million for 2001, which is an increase of 18% and 8% respectively over the same period of last year.

On their heels are two very popular Arab countries, Egypt and the UAE, with Visa expenditure in Egypt during the summer of 2001 standing at 29,400 transactions, with expenditure of US$ 9.5 million, which is a 13% and 7% increase over the 2000 figures respectively. The UAE on the other hand also saw increased Visa usage during that same period with transactions standing at 52,200 for 2001, which is an 11% increase over 2000, however the value of those transactions registered a slight 4% drop for the same period.

This growing trend by many Saudis in using credit card or debit card, such as those offered by Visa is far better than carrying cash; and far safer too. More than 25 million outlets around the world accept Visa and more than 650,000 ATMs enable travellers to obtain local currency. With simple convenience, Visa is rapidly becoming the universal currency. With the convenience that it offers Visa is helping those travellers pay for their shopping, with credit card expenditure making up 40% of total payments. These are signs that the tide is turning and we in the Middle East are really becoming smart shoppers.

Many Gulf travellers prefer using a credit card for convenience. "Most people find it easier to use a payment card than not," says Iain Jamieson, General Manager for Visa International in Saudi Arabia. "It means they don't have to carry large amounts of money and they don't have to worry about exchange rates. They just feel more safe and secure; and able to fully enjoy their holiday experience, no matter where they choose to travel."

Besides being convenient, Visa cards can be replaced with your money intact, if lost or stolen - which is not the case with cash - when it's gone, it's usually gone for good. In many cases, your purchases are protected too; so ultimately, Visa offers cardholders on holiday a secure, convenient and easy way to pay abroad.