The dispute has created a strain between Kingdom-based Umrah companies and hotels in Makkah and Madinah, which have refused to commit to the new terms and conditions that were supposed to have come into force early this year. The problems started when the Saudi Commission for Tourism and Antiquities (SCTA) took over the supervision of hotels in the two holy cities from the Ministry of Haj.

Hotels are now automatically linked to the Center for Umrah Service Regulations (CUSR). A number of investors and businessmen expected dramatic losses for private Umrah companies if the new system was applied. They called for a transitional period to allow hotels enough time to be able to implement the new rules.

They also said Saudi Umrah companies and their agents around the world needed a chance to reduce their losses by at least SR50 million, especially as they were hit last year due to the swine flu pandemic.

The deputy CEO of Shaair Company for the Promotion of Tourism Ahmad Sheikh Alawi Bafakeeh said the problems were with the automatic system.

He said the manual system which continued until last year allowed Umrah companies to approach the Haj ministry with official documents concerning the capacity of hotels for its approval.

“Since the beginning of this year, Umrah companies have had to enter their data electronically. In the past, when everything was done manually, the Ministry of Haj was the sole reference for the companies,” he said.

“SCTA is keen to grant licenses using different criteria to the Haj ministry, which would allow buildings other than hotels and furnished apartments to accommodate pilgrims,” he said.

Bafakeeh said Umrah service companies and their agents were surprised that their Haj permits were not enough to reserve hotels after they had entered into contracts with them and paid large amounts of money.

“The owners of the hotels were similarly surprised by the lengthy procedures they have to fulfill in order to be allowed to accommodate pilgrims under new SCTA rules and regulations. To obtain licenses to accommodate pilgrims, hotel officials have to spend a long time going to the SCTA/=, the Civil Defense and the municipality to complete paperwork,” he said.

Bafakeeh said every transitional period should be flexible and the implementation of the new regulations should be gradual. He also said companies should be given until the 30th of Shawwal every year in order to be able to send pilgrims who come for Umrah during Ramadan home.

Saad Jameel Al-Qurashi, chairman of the Haj and Umrah Commission at the Makkah Chamber of Commerce and Industry, called for giving Umrah firms up to a year to prepare themselves for the new procedures and avoid incurring financial penalties.