MCCI seeks priority for hotel investors to launch Umrah firms

A leading Haj operator has called on the Ministry of Haj to give priority to the owners of hotels in Makkah and Madinah for launching Umrah companies, which the ministry plans to do in the coming days.
Khalil Abdul Rahman Bahader, vice chairman of the committee for furnished apartments and hotels at the Makkah Chamber of Commerce and Industry (MCCI), pointed out that giving priority to the owners of hotels in the two holy cities will help prevent non-Saudis meddling with the housing market of Umrah pilgrims and visitors besides stopping speculations that raise prices during the peak season.
He pointed out that the completion by the Saudi Commission for Tourism and Antiquities (SCTA) of the classification of more than 130 hotels in Makkah alone so far, apart from those in Madinah, indicated the presence of a large numbers of Saudi workers and investors in this area with the expertise, capabilities and potential to establish strong Umrah companies.
Bahader added that accommodation is still an important factor in determining the cost of Umrah and Haj.
He pointed out that granting the hotel owners in Makkah priority to set up Umrah companies would reduce the volume of complaints by pilgrims, which are mostly on failure of fulfilling housing specifications or violation of agreements made for Umrah and Haj packages.
He said the Haj Ministry planned to set up new Umrah companies as part of its preparations to meet the surge in the number of pilgrims from the beginning of next year with the completion and commissioning of the current expansion projects inside and on the squares of the Grand Mosque, masaa (area between Safa and Marwah) and the holy sites. He added that the officials at the Ministry of Haj told him that the increase in the number of Umrah companies is subject to the size of the market and the new regulations related to the organization of Umrah pilgrimage.
Bahader also viewed that the increase in Umrah companies would serve better the interests of pilgrims.
With the relocation of a large number of Makkah hotels and furnished apartments in the wake of the recent expansions at the Grand Mosque, they have acquired fleets of buses to transport pilgrims from their hotels to the Grand Mosque and back in addition to making arrangements to provide meals. He said providing housing and transport, and feeding the pilgrims are the major aspects of services provided by hotels.
He pointed out that giving priority to hoteliers in the establishment of new Umrah companies would lead to increased investment in the sector and more job opportunities for Saudis in addition to the establishment of hotel groups, which would result in greater competition in the field ultimately benefiting the pilgrims.
Bahader predicted that more than 400 hotel and furnished apartment owners and investors in Makkah and Madinah would be willing to launch new Umrah companies if the existing companies are given priority in launching these companies. He feared that their number would fall by more than half if they are not given priority.
He also warned that the entry of new parties to launch Umrah companies will only perpetuate the issues that plague the Umrah service sector.