RIYADH: Net profits of the listed tourism and hospitality firms dropped by 29 percent to SR276 million in the first quarter of the current year compared to SR389 million in the same period last year, according to a financial report.
Likewise, sales of the tourism sector in Q1 of the year dropped by 7 percent to SR2.4 billion compared to SR2.6 billion in the last quarter of 2015, Al-Hayat daily said in the report.
The number of listed tourism and hospitality firms stands at four with their market capitalization at SR13.5 billion, or 0.88 percent of the Saudi market value, the report said.
Al-Tayyar Travel Holding Group captured the biggest portion of the sector’s profit growth at 70 percent worth SR194 million in Q1 compared to SR286 million in Q1, 2015, or a drop of 32 percent. The company attributed the drop in profits to decrease in local sales, notably sales of the government sector and companies related to the government sector.
The company said sales through the Internet grew by 1,000 percent in Q1 compared to figures of Q1 2015, from SR6 million to SR66 million, the report said.
Abdulmohsen Alhokair Group for Tourism and Development Company captured 18.2 percent of the sector profits at SR50.2 million in Q1 compared to SR57.6 million in Q1, 2015, or a drop of 12.85 percent.
On the other hand, share of Dur Hospitality Company to the sector’s profits stood at 11.40 percent at SR31.5 million in Q1 compared to SR45 million in Q1, 2015, or a drop of 30 percent.
The drop was attributed to the profitability drop of company’s hotels in light of decrease in Umrah visitors and increase of operation costs.
Meanwhile, share of Tourism Enterprise Company (Shams) to the sector’s profits reached 0.23 percent at SR643,000 in Q1 compared to SR641,500 in Q1, 2015, or an increase of 0.26 percent. The company attributed the profit growth to the increase in rental and service revenues and decrease in marketing and general spending, the report said.
Likewise, sales of the tourism sector in Q1 of the year dropped by 7 percent to SR2.4 billion compared to SR2.6 billion in the last quarter of 2015, Al-Hayat daily said in the report.
The number of listed tourism and hospitality firms stands at four with their market capitalization at SR13.5 billion, or 0.88 percent of the Saudi market value, the report said.
Al-Tayyar Travel Holding Group captured the biggest portion of the sector’s profit growth at 70 percent worth SR194 million in Q1 compared to SR286 million in Q1, 2015, or a drop of 32 percent. The company attributed the drop in profits to decrease in local sales, notably sales of the government sector and companies related to the government sector.
The company said sales through the Internet grew by 1,000 percent in Q1 compared to figures of Q1 2015, from SR6 million to SR66 million, the report said.
Abdulmohsen Alhokair Group for Tourism and Development Company captured 18.2 percent of the sector profits at SR50.2 million in Q1 compared to SR57.6 million in Q1, 2015, or a drop of 12.85 percent.
On the other hand, share of Dur Hospitality Company to the sector’s profits stood at 11.40 percent at SR31.5 million in Q1 compared to SR45 million in Q1, 2015, or a drop of 30 percent.
The drop was attributed to the profitability drop of company’s hotels in light of decrease in Umrah visitors and increase of operation costs.
Meanwhile, share of Tourism Enterprise Company (Shams) to the sector’s profits reached 0.23 percent at SR643,000 in Q1 compared to SR641,500 in Q1, 2015, or an increase of 0.26 percent. The company attributed the profit growth to the increase in rental and service revenues and decrease in marketing and general spending, the report said.
