Haj revenues are expected to drop drastically this season, with expected losses estimated to be worth SR2.5 billion owing to a reduction in the number of pilgrims, according to official reports.

The decision to reduce the number of domestic pilgrims by 50 percent and foreign pilgrims by 20 percent was taken due to expansion works being carried out at the Grand Mosque.

Domestic pilgrims spend between SR7,000 and SR8,000 per person, generating up to SR832 million for Haj servicing firms, said Osama Yahya Filani, head of the Haj and Umrah Committee at the Council of Saudi Chambers (CSC).

Foreign pilgrims, on the other hand, spend on average SR1,200 individually, translating to SR1.6 billion worth of investments for Haj firms.

The Haj Ministry has licensed 22 companies to provide low-cost Haj services to domestic pilgrims, including expatriates. Costs will vary from SR1,900 to SR,3900 per person.

According to Filani, inland Haj service rates will range between SR5,000 and SR15,000 depending on the types of services offered.

Figures on Haj expenditure are subject to fluctuation owing to the prices of air fares, which can double during certain periods of the year, Filani said.

He attributed the increase in domestic airfares to brokers who demand extra charges for tickets at peak times of the year. Filani said a present round trip fare from Riyadh this Haj season ranges between SR1,500 and SR1,700 per person compared to the regular rate of SR700.

Abdulqadir Al-Jabarti, former deputy head of the Haj and Umrah committee at CSC, said the reduction of foreign pilgrims by 20 percent will not greatly affect revenues because Haj service fees have remained unchanged during the last 30 years.