JEDDAH, 18 August — Saudi companies licensed to provide Umrah services have expressed their fears that the recent move by the Haj Ministry allowing Tawafa organizations to handle Umrah pilgrims will drastically undermine their business.
Representatives of the Umrah companies are expected to raise the issue during a meeting with Dr. Muhammad Bantan, undersecretary for Umrah affairs, at the Makkah Chamber of Commerce and Industry on Monday.
The existing Umrah firms said the six Tawafa organizations specializing in Umrah services would definitely reduce their market share, and may quite possibly result in their departure from the market within a few years.
They want the ministry to withdraw the licenses given to the Tawafa organizations on the grounds that the latter will dominate the market because of their financial capabilities and professional expertise.
The Tawafa organizations, which handle more than 1.2 million foreign pilgrims every year, meanwhile said their entry into the Umrah market could only improve the service, as they would be able to extend housing and transport services to Umrah pilgrims using their existing resources.
Abdul Raheem Ahmad, a Tawafa official, said the Tawafa organizations could coordinate with the Umrah companies to provide excellent services to the pilgrims.
The Umrah companies have faced a lot of problems in getting agents in foreign countries due to the difficult conditions set by the new Umrah law introduced on May 1.
Market analysts expect that Saudi pilgrim transport companies will also enter the market with their fleet of 11,000 buses.
