Saudi Gazette report

RIYADH – Taking loans for travel and tourism has become a new trend among Saudis as well as expatriates and most of them are unaware of its negative consequences.

“We can understand people taking loans to purchase a car on installment because having a car is one of the essentials of life and it will be with him for a long period,” said an expert.

But taking loans for a 10 or 20-day tourism trip and paying back the money in installments would put additional financial burden on families.

Economic analyst Ali Al-Jaafari blamed commercial banks for promoting such loans by giving customers credit cards charging an interest rate of 18 to 24 percent annually.

“Moreover, some travel and tourism agencies help families and individuals pay their travel expenses in installments,” he told Al-Riyadh Arabic daily.

Al-Jaafari opposed the trend to take loans to meet travel and tourism expenses.

“If you don’t have necessary money for foreign tourism it’s better you spend your annual vacation in a different way without causing additional financial burden,” he added.

He said taking loans for travel and tourism would push families to indebtedness and the heads of families would not be able to meet essential family requirements.

“What we get after expensive travel and tourism programs is some memories and photos taken by the cell phone while the financial problems it created will continue to hit us for several years,” he pointed out.

He urged the Ministry of Education to promote domestic tourism in coordination with the Ministry of Entertainment. “They should educate the public on the need to spend their annual vacation inside the Kingdom and encourage students to attend the various educational and skill development programs that are held during the vacation,” he said.

Al-Jaafari urged women to look into the basic requirements of the family instead of pushing their husbands to take loans to spend on foreign tourism programs.

“They should know the financial condition of the family and should not put additional burden on the family budget by spending a few days in a foreign tourist destination. They should know that taking loans for tourism would have a negative impact on the family’s financial condition.

“We should focus on basic requirements before spending on unnecessary things,” the analyst said.

Sheikha Al-Qahtani, a businesswoman, spoke about the catastrophic effect of taking loans for travel and tourism. “We should take loans only for essential things. Travel and tourism will not be considered among the essentials.”

“It’s OK if we travel for healthcare and education or work and we know the concrete results of such travels. People should save money from their earnings to spend their vacations in foreign tourist destinations without taking loans from banks,” she said.