As Saudi Arabia successfully emerges from the shadow of the COVID-19 pandemic, hotels and businesses in the holy cities of Mecca and Medina are experiencing a revival thanks to an increased flow of Umrah pilgrims.
According to a report by the Saudi Press Agency, the Kingdom's hotel, restaurant, transport, food, and commercial sectors have benefited from the influx of Umrah pilgrims. It stated that the most in-demand item among pilgrims was ready-made clothing, along with gifts and Zamzam water.
The economic benefits are the result of steps taken to make the holy cities of Mecca and Medina more accessible to pilgrims, including the lifting of COVID-19 restrictions and age limits, the extension of Umrah visa validity from 30 to 90 days, and the removal of the requirement for a male guardian to accompany pilgrims.
Since the start of this year's season, the Kingdom has issued 4 million Umrah visas to pilgrims from around the world, the Ministry of Hajj and Umrah reported last week.
Additionally, in September, the ministry launched a new unified government platform through which pilgrims can plan and book their visits to Mecca and Medina.
The platform provides a wide range of services and information for pilgrims and visitors, allowing them to easily perform Umrah rituals. This is part of the Kingdom's Vision 2030 goals aimed at improving the quality of services provided and enriching the religious and cultural experience of pilgrims.
Speaking about the platform at the Umrah+ Connect event in London last month, Minister of Hajj and Umrah Tawfiq Al-Rabiah said: «Saudi Arabia is committed to serving the two holy mosques and pilgrims from around the world, and that is why we have also worked on digitizing the process of obtaining all types of visas.».
Of all the industries affected by the pandemic, the hospitality sector was the hardest hit in Saudi Arabia and the Gulf countries, as in all other territories.
In 2020, hotel occupancy dropped to 49 percent in Riyadh from 60 percent in 2019. Similarly, Mecca saw a decline from 61 percent to 25 percent, and Jeddah from 58 percent to 37 percent, according to professional services firm Deloitte.
However, reports from global hospitality data provider STR showed that Saudi Arabia's hotel industry continues to move toward full recovery. While occupancy and room rates in Riyadh in October reached their highest level for any month since March 2022, hotel occupancy in Jeddah in November exceeded pre-pandemic levels.
A report by Colliers International published in June expects 110,000 rooms to be built in Mecca and Medina by 2030 to serve pilgrims.
More than 100,000 rooms are expected to be built in the Gulf Cooperation Council region by 2026, with total supply exceeding 1 million rooms, according to Colliers International.
The vast majority will be in Saudi Arabia, followed by the UAE.
According to the consulting firm, taking into account the planned megaprojects in Mecca and Medina, approximately 50,000 additional skilled and trained hospitality professionals will be needed for these projects by 2030.
In working on its post-recovery plan, Saudi Arabia considered tourism as a key sector to focus on.
Speaking at the World Travel and Tourism Council Global Summit in Riyadh last month, Saudi Minister of Tourism Ahmed Al-Khateeb announced that the Kingdom is offering $6 trillion in investment opportunities in the travel and tourism sector through 2030.
«We built our tourism industry against the backdrop of a global catastrophe (the COVID-19 pandemic). And now we have $6 trillion in investment opportunities through 2030,» Al-Khateeb said.
He added: «We value cooperation. We have proven that it works. Our shared commitment to partnership will drive the global industry forward. Saudi Arabia is rethinking tourism, using the power of partnership and ensuring that no one is left behind.».
In an October report, the World Tourism Organization included Saudi Arabia among the top G20 countries by international tourist arrivals for the first seven months of 2022.