JEDDAH: The decision by Saudi authorities to reduce the validity of Umrah visas from three to two months and to restrict the number of visas to be issued each month will cost businessmen in Makkah more than SR1 billion annually in lost business, according to executives in the Umrah service sector.

Jameel Al-Qurashi, head of the Haj and Umrah Committee at the Makkah Chamber of Commerce and Industry, said the new system had also reduced the number of foreign pilgrims coming for Umrah during the holy month of Ramadan.

More than two million faithful attended Taraweeh and Tahajjud prayers at the Grand Mosque in Makkah on Friday, seeking the blessings of Lailat Al-Qadr or the Night of Power.

“The huge crowd was formed not by the pilgrims who came from abroad but by pilgrims from within the Kingdom and neighboring Gulf countries,” Al-Qurashi said.

Khalil Bahadur, a member of the National Committee for Haj and Umrah and owner of several hotels in the central region of Makkah, said there was at least a 30 percent decrease in occupation of Makkah hotel rooms by foreign pilgrims.

He said the hospitality sector was the worst affected as a result of the shortening of the Umrah visa period.

Umrah service companies, transport companies and other related sectors also lost business.

Bahadur has eight hotels with 1,200 rooms in Makkah that can accommodate at least 4,000 pilgrims.

Saudi authorities reportedly cut short the validity of Umrah visas to discourage people who have been issued visas from deferring their travel plans. This was done in order to reduce crowding at the holy cities in peak periods such as the last 10 days of Ramadan.

In the past, individuals and tour groups who were issued Umrah visas in the lunar months of Jamad Al-Thani, Rajab and Shaaban delayed their travel in order to perform Umrah during the holy month. After the new rule has been implemented, most people cannot do so because of the short validity of the visas.

Meanwhile, the demolition of more than 1,000 buildings in the northeastern part of the Grand Mosque has created a housing shortage in the city.

Ibrahim Atwa, marketing manager of Makkah Hilton, said the demolition of hotels and other residential buildings had not increased prices at five-star hotels in Makkah. However, he said a 10 percent increase could be noticed as a result of the involvement of several travel and tourism agencies.

Atwa said many people had reserved rooms at the Makkah Hilton six months ago in order to spend the last 10 days of Ramadan in the vicinity of the Grand Mosque.