Saudi Arabia's Al Tayyar Travel Group posted a 32.2 per cent fall in first-quarter net profit on Wednesday, as reduced government spending hit the domestic tourism sector.

The company made a net profit of SR194 million ($51.8 million) in the three months to March 31, down from SR286 million ($76.2 million) in the prior-year period, according to a bourse filing.

Aljazira Capital expected the company to make a quarterly profit of SR210.8 million ($56.1 million).

The firm said quarterly revenue fell nine per cent year on year, citing a drop in sales related to domestic tourism and government travel.

Al Tayyar said on April 4 it had completed all necessary procedures to acquire 30 per cent of Zakhr Investment and Real Estate Development, which is building a hotel and other facilities in Makkah, through a share swap agreement.-Reuters