Sami Al-Maghamsi
Okaz/Saudi Gazette
MADINAH — After receiving 6.4 million pilgrims this year, the Kingdom is expected to earn a revenue of SR45 billion from Umrah, says Abdul Ghani Hammad Al-Ansari, a member of the National Tourism Committee at Madinah Chamber of Commerce and Industry.
He said a study conducted by a specialized company found that a pilgrim spends an average of SR7,031.25, with 35 percent of the amount going to housing, 25 percent to transport and communication, 15 percent to food and 15 percent to gifts and souvenirs.
“This spending is distributed among 30 businesses in Makkah and Madinah including hotels, service providers, water and electricity, markets and bakeries,” the study pointed out.
Al-Ansari believed that hotel occupancy in Makkah would reach 90 percent and in Madinah 85 percent with prices of five star hotel rooms ranging between SR500 to SR2,000 for a single night.
He expected charges of three star hotel rooms to be between SR250 and SR400 and SR100 for a room in hotels situated away from the two Haram mosques.
He said the purchasing power of pilgrims has declined as a result of global economic depression. “This has reduced hotels’ revenue in Makkah and Madinah and cut down Umrah revenue during Ramadan.”
Al-Ansari called upon hotels to improve their services and launch joint marketing companies to market Makkah and Madinah. He stressed the need to increase the number of annual Umrah pilgrims to 7.5 million and raising the number of Umrah service firms to 45.
He hoped that increasing Umrah traffic would decrease unemployment among Saudis in Makkah and Madinah. He stressed the need to promote Made in Makkah and Made in Madinah products. He hoped the two holy cities would attract huge investment projects.
