JEDDAH, 9 February 2004 — Business organizations in Saudi Arabia have made at least SR5.2 billion for services to an estimated two million pilgrims during this Haj season, economic analysts have said. The calculations were made on the basis of some 1.4 million pilgrims who came from abroad each spending at least SR3,750 ($1,000) on transportation, accommodation, living expenses and services provided by the Tawafa and Zamazima organizations in addition to their spending on gifts for their families.
Analysts estimated that pilgrims spent SR1.4 billion renting accommodation in some 7,000 apartment buildings and hotels. “Foreign Haj missions, which are authorized to select buildings for their pilgrims, get about SR400 million in commission,” Al-Madinah Arabic daily reported, quoting market analysts.
The six Tawafa (pilgrim guide) organizations for pilgrims from different countries earned a total of SR285.6 million for their various services. Each pilgrim is charged SR204 for their services. Transportation companies, Zamazima office, the United Agencies Office and the Guides Organization were paid a total of SR546 million. The figure is based on each pilgrim being charged SR390 for their services. The Zamazima office supplies Zamzam water for pilgrims at their residential buildings as well as at the holy places of Mina and Arafat.
Pilgrims spent some SR2 billion on air transportation to travel to and from the Kingdom. Saudi Arabian Airlines took 20 percent of this with the rest going to foreign airlines, the daily said, quoting the analysts. They estimated pilgrims’ living expenses in the two holy cities, including their spending on the purchase of gifts, at SR1 billion.
Officials of Tawafa organizations said their revenues from Haj service remained constant and had not changed. “We are more concerned with improving our services to pilgrims than increasing revenues,” Tawafa officials were quoted as saying.
Foreign currency dealers did good business during this Haj. “Banks were closed during the whole period. Even banks that specialize in currency exchange and are known to give competitive rates compared with ours were closed,” said Saeed Al-Qarni, 26, a teller at a currency exchange in north Jeddah.
It meant that the pilgrims had to swap their cash through dealers. Most were Turkish, Egyptian and Asian.
Retail pharmacists also enjoyed a boom, courtesy of the Haj season. Emad Yousef, an Egyptian pharmacist at Al-Noor Pharmacy, told Arab News that before Haj started pilgrims came in to buy medical necessities. “First Aid kits, women’s hygiene products and cold and flu medications were selling in large numbers. We see similar buying patterns before people travel during the summer, but not in these amounts.”
Ahmed Sager, 29, who operates a phone cabin in Makkah near the Holy Mosque said that business was even stronger this year because of new services and new marketing techniques. The limited edition “Haj Sawa” cards and the massive advertising campaign behind it guaranteed its success during the Haj, even though it was priced exactly the same as the standard Sawa prepaid mobile phone cards. “We might need to expand by next year’s Haj if we can. The demand to call home and say ‘Hello I’m in Makkah’ is just too great.”
