MAKKAH: Hotels and Umrah companies in Makkah are expected to suffer heavy losses this Ramadan as many prospective foreign pilgrims have canceled their trips fearing swine flu.
As a result businessmen operating in the Umrah sector have called upon the Haj Ministry to present their case to higher authorities for financial compensation.
Walid Abu Sabaa, chairman of the Hotel and Tourism Committee at the Makkah Chamber of Commerce and Industry and owner of a hotel group, said cancellation of hotel bookings had reached 50 percent.
“Occupancy of hotel rooms declined to 30 percent in the first week of Ramadan, compared to 80 percent during the same period last year,” he said.
He estimated his group’s total loss at SR10 million during the first two days of Ramadan. “Cancellation of bookings at our hotels has reached about 90 percent. This is a big catastrophe.”
Abu Sabaa blamed exaggerated reports about swine flu for the unprecedented fall in Umrah business. Groups that have made bookings for the last 10 days of Ramadan are demanding lesser charges than they had agreed upon, he pointed out.
“There is considerable fall in demand. This has forced five-star hotels to offer 50 percent discounts to win clients,” he said, estimating losses of most Makkah hotels at 30 to 40 percent.
He further called on the Haj Ministry to understand the problems facing Umrah companies and other businesses in the sector and do the needful to offset their losses.
“We hope that the ministry would continue to issue Umrah visas instead of closing two days before Ramadan. This will help Umrah companies and other businesses to cut short their losses,” Abu Sabaa said.
He said the restrictions imposed by the Egyptian government on pilgrims resulted in increasing losses to Saudi Umrah businesses. Some 400,000 Egyptians were expected to perform Umrah this Ramadan.
Abu Sabaa said the problem of hotels and Umrah companies began two months ago when the inflow of pilgrims started declining. Many pilgrims, including those from within the Kingdom, postponed their Umrah trips for fear of swine flu.
Saad Al-Qurashi, chairman of the Haj and Umrah Committee at the Makkah Chamber of Commerce and Industry, said swine flu had caused big losses to the housing, transport and food sectors.
He estimated the Umrah sector’s losses at SR300 million. According to Al-Qurashi, occupancy at 300 hotels located in the central region of Makkah was less than 65 percent. He said he feared that some countries might put restrictions on their citizens traveling for Umrah fearing the spread of swine flu.
He called for flexibility from the Ministry of Foreign Affairs and the Ministry of Haj in issuing visas. The two have reached an agreement that the issuance of Umrah visas be stopped on Shaaban 28 to begin issuance of Haj visas in the middle of Ramadan.
He also urged the Ministry of Haj to inform higher authorities about the losses suffered by the sectors involved in Umrah services to give them compensation.
