Makkah hospitality sector gets significant boost amid Hajj season

The hotel occupancy rates in Makkah have reached 100 percent, such as the Novotel Thakher Makkah hotel. This substantial increase in occupancy comes in contrast to the 80 percent rate observed during the last Ramadan. (Shutterstock)

RIYADH: Hotels in Makkah have been running at full capacity as Muslims worldwide flocked to the holy city to perform Hajj after Saudi Arabia removed restrictions on the number and age of pilgrims, according to a top realtor in the city.  
“The hotel occupancy rates in Makkah have reached 100 percent, such as the Novotel Thakher Makkah hotel. This substantial increase in occupancy comes in contrast to the 80 percent rate observed during the last Ramadan,” said Abdulaziz Al-Aboudi, the CEO of Thakher Development Co, a real estate firm focused on the hospitality sector.
He added that the hotels in the city had a 60 percent occupancy rate in 2022.
The Kingdom has already welcomed over 2 million pilgrims in 2023, thanks to the government’s measures to provide enhanced facilities and accommodations for travelers visiting the holy cities. 
Global property consultant CBRE, in a recent report, noted that the occupancy levels of Makkah and Madinah increased 21.2 and 18.5 percent, respectively, in the first quarter of 2023 over the same period of last year. 
The report stated that the rise could be attributed to removing visitation restrictions and the beginning of Ramadan.
The average daily rate in Makkah and Madinah also rose significantly by 91.5 percent and 62 percent between January and March this year compared to the same period last year.
Al-Aboudi noted that improving performance indicates a booming time for the construction and hospitality sectors. 
The CEO revealed that his company has recently opened the Park Inn by Radisson Hotel and obtained the necessary Hajj license for its operation.  
Al-Aboudi also emphasized that the remarkable growth in the hospitality industry of the Kingdom’s holy sites aligns perfectly with the goals of Vision 2030, reflecting the transformative impact of the national vision. 
“The current strong performance, which we anticipate will persist in the years to come, confirms the impressive success of the ambitious vision of the Kingdom of Saudi Arabia, which aims to accommodate 30 million Umrah performers and 6 million pilgrims by 2030,” he added. 
Thakher Development Co. is the master developer for the Thakher Makkah infrastructure project, which is around 1 km from the Grand Mosque and near the holy sites of Muzdalifah, Mina and Arafat. 
The project covers an expansive area of 320,000 sq. meters, offering ample space for development.  
Upon its completion, the project will comprise approximately 100 diverse land plots designed for hotels, residential buildings and commercial establishments.