RIYADH, 25 October — Umrah service companies are expected to earn a combined revenue of SR7 billion this Hijrah year (which ends on March 3, 2003), according to a study prepared by the Haj Ministry.
In light of the growing number of Umrah pilgrims, the ministry expects the revenues from Umrah service to cross SR18 billion within 10 years.
The ministry has licensed 229 Saudi Umrah companies to provide various services to pilgrims from the time of their arrival until departure. These companies deal with 3,500 agents in foreign countries in addition to airlines, road transport and shipping companies, hotels and restaurants.
The ministry estimated the revenue on the basis of average expenditure by an Umrah pilgrim, who stays for 11 days in the Kingdom. They include transport, accommodation and service charges.
An Umrah pilgrim will spend a maximum of SR4,508, a minimum of SR2,567 and median of SR3,537, the study pointed out.
"The Umrah companies will make a maximum revenue of SR9.018 billion, a minimum of SR5.234 billion and a median of SR7.076 billion," said the study, which was published yesterday by Al-Madinah newspaper.
The ministry issued 1.9 million Umrah visas during this Hijrah year until Oct. 18, with Egyptians receiving the lion’s share of 37.1 percent, followed by Iran (14.9 percent), Pakistan (11.5 percent), Syria (7.4 percent), Yemen, Jordan (4 percent), Sudan (3.6 percent), Malaysia (2.6 percent) and India (2 percent). Last year the ministry issued a total of 1.8 million Umrah visas.
The government implemented the new Umrah system about two years ago as part of its efforts to privatize Umrah pilgrim service. The new system was instrumental in boosting the Kingdom’s economy and creating more than 3,000 new jobs for Saudis.
It created more business for real estate, transport and automobile companies. The new Umrah companies have opened 650 main and branch offices and purchased more than 1,000 cars and buses. The Umrah companies have made a total investment of SR834 million.
The study said the average revenue from Umrah services will account for 1.22 percent of the gross domestic product (GDP) or SR7.075 billion.
The ministry has developed an advanced computer system spending about SR100 million to provide information related to Umrah pilgrims who come from various parts of the world. The system enables to find out the name and nationality of pilgrims and their places of stay in the Kingdom and other relevant information.
The new Umrah system helped reduce the number of overstayers and the negative phenomenon of pilgrims squatting in public places.
