The hospitality industry in Saudi Arabia is experiencing a significant revival: during the holy month of Ramadan this year, room occupancy in Mecca reached 80 percent, the highest level in the past three years, according to Abdullah Al-Qadi, chairman of the Hajj and Umrah Committee of the Mecca Chamber.
This led to room prices also rising to record levels due to high demand, especially during the last 10 days of the season. Al-Qadi notes that hotel prices, especially in Mecca, are determined by a number of factors, including supply and demand, the hotel's location near the Grand Mosque, room views, and amenities.
He also added that hotel prices are similar to airline ticket prices, especially in the central region, where prices gradually increase as the season approaches. Al-Qadi reported that the Ministry of Tourism worked with investors in Mecca with full transparency and clarity to restore the hospitality sector after the COVID-19 pandemic.
He added that several remote meetings were held to address various issues faced by investors, which helped the sector recover quickly. According to a survey conducted by the Saudi newspaper Al-Eqtisadiah, hotel room prices in the central area of Mecca over the past ten years have risen sharply from 3,000 Saudi riyals (800 US dollars) to 9,000 Saudi riyals per room per day.
This year's Ramadan season was also marked by high attendance, especially after the opening of visas and opportunities provided by the Kingdom to pilgrims from abroad. Minister of Tourism Ahmed Al-Khatib stated that last December, Saudi Arabia initiated 10 new policies to expand the tourism sector and protect tourists, calling the new laws «a promising step toward a prosperous tourism future» in his tweet.
According to a report by the Saudi Press Agency, the Kingdom's hotel, restaurant, transportation, food, and commercial sectors benefited from the influx of Umrah pilgrims, as ready-made clothing, gifts, and Zamzam water topped the list of the most in-demand goods among pilgrims.
Al-Khatib also announced last November that the Kingdom is offering investment opportunities worth 6 trillion dollars in the travel and tourism sector through 2030.