The Hajj pilgrimage begins Wednesday, June 4, kicking off one of the crucial essential weeks for Saudi Arabia’s tourism sector. In simply 5 days, almost 2 million pilgrims are anticipated to go to Makkah.
Final 12 months, the dominion recorded 29.7 million worldwide guests, in keeping with the newest Imaginative and prescient 2030 progress report. Of these, 16.9 million arrived for Umrah — carried out year-round — whereas 1.61 million accomplished Hajj, a pilgrimage certain to particular days on the Islamic calendar.
By the tip of the last decade, Saudi Arabia hopes to usher in 30 million spiritual vacationers yearly. That’s driving multibillion-dollar developments throughout the holy cities.
Megaprojects in Makkah and Madinah
Central to the dominion’s ambitions is the Rua Al Madinah mission, launched in August 2022 by Crown Prince Mohammed bin Salman. The event spans 1.5 million sq. meters east of the Prophet’s Mosque. In accordance with authorities projections, Rua Al Madinah will add greater than 47,000 resort rooms by 2030 and increase capability to host 149,000 folks.
Makkah is present process its personal transformation by means of the Masar mission, a 1.2-square-kilometer hall centered on King Abdulaziz Highway. The mixed-use improvement is anticipated to price $26.7 billion and embrace 24,000 resort rooms by 2030, per Arab Information.
Makkah stays the point of interest of each pilgrimages. Hajj is a once-in-a-lifetime obligation for Muslims who’re bodily and financially in a position. Madinah, whereas not required for Hajj or Umrah, holds profound historic and non secular significance and noticed 13 million visits in 2023, in keeping with the Saudi Press Company.
Lodge Builders Double Down on the Holy Cities
With demand climbing, resort chains are ramping up provide. Radisson Lodge Group plans two extra openings in Makkah and Madinah this 12 months.
“Spiritual journey stays one of many most secure and most resilient funding bets within the kingdom,” mentioned Radisson’s regional improvement VP, Elie Milky. “You’ll have 20 or 30 accommodations in The Crimson Sea or Neom. However the bread and butter of Saudi tourism is Riyadh, Jeddah and the Jap Province as business hubs, and the holy cities and secondary cities.”
Milky mentioned Radisson re-entered the Madinah market three months in the past.
“Our strongest markets prior to now 12 months have been Riyadh and Madinah by way of improvement offers,” he mentioned.
Regardless of the increase, spiritual tourism stays seasonal, particularly in Makkah, the place resort charges swing dramatically. A room on the Park Inn by Radisson can price simply $32 an evening exterior of Hajj season, however greater than $500 in the course of the pilgrimage.
“There may be extra fluctuation in Makkah and Madinah, extra seasonality,” Milky mentioned. “However we consider seasonality is much less in Madinah than in Makkah. Makkah has extra work to be accomplished to scale back seasonality, however I’m a giant fan of Madinah — it’s simpler to make it much less seasonal.”
One lever to drag? Longer stays.
“I consider within the overflow of spiritual tourism into components of the financial system,” Milky mentioned. “You need to keep away from vacationers going to Makkah or Madinah for 3 days, then leaving. You need them to spend time in Jeddah. You need them to spend every week in a spot.”
That prolonged keep, he argued, might open the door to extra spending throughout the dominion, particularly in secondary cities.
“The deal with spiritual tourism ought to proceed, however it ought to mix with the cultural choices of the dominion,” Milky added. “You possibly can name it ‘Umrah Plus’ [or] a cultural tour. One thing to increase the size of keep, lengthen the common spend. Spiritual tourism shouldn’t be accomplished in isolation.”
Demand Is Already There
On the Future Hospitality Summit in Riyadh final month, Amin Ismail, managing director at funding agency Certares, echoed that sentiment.
“We see spiritual journey because the ‘low-hanging fruit’ for the Kingdom’s tourism sector; the demand is pure and already current,” he mentioned. “Final 12 months, customer numbers have been doubtless within the low teenagers of thousands and thousands, and Imaginative and prescient 2030 goals for over 30 million. This anticipated demand is clear within the building across the holy websites.”
Ismail additionally highlighted the potential of mixing spiritual journeys with different journey functions.
“A key part can also be the potential to bundle spiritual visits with different experiences,” he mentioned. “For instance, somebody attending a MICE occasion may lengthen their journey for Umrah or go to different locations. The vacationer numbers are sturdy and poised for development as capability will increase.”
