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Huge spike in Makkah accomodation prices ahead of Hajj

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Saudi Gazette | 18 Dhul Qa’dah 1436/03 September 2015The rents in five-star hotels in the central area around the Grand Mosque in Makkah have gone up as far as SR70,000 for the Haj period, according to hoteliers in the holy city.

They said the rent of a double-bed room can reach as much as SR55,000 while a room with four beds cannot be rented for less than SR70,000.
The hoteliers said the Haj season is divided into three periods based on demand. The first is from Dhul Qada 20 to Dhul Hijja 1 (Sept. 4-14 this year), the second from Dhul Hijja 1 to 14 (Sept. 14-27) and the third from Dhul Hijja 14 to 20 (Sept. 27-Oct. 3).
They said there are more than 10 five-star hotels in the central area, which are competing for occupancy during the Haj as the index of the rent price is governed by supply and demand.
Ali Al-Tarqi, a salesman in one of the hotels, said the price of an additional bed ranges from SR4,000 to SR7,000.
Mashhour Al-Omairi, a tourism investor, said the price of a room in any 4-star hotel will not be less than SR34,000 and can go up to SR38,000.
However, Walid Abu Samaan, former head of the hotels committee in the Makkah Chamber of Commerce and Industry, said the hotel sector in Makkah is facing recession this Haj season.
He said there are about 172,000 rooms in 1,105 hotels in Makkah, in addition to the furnished apartments and other buildings licensed to accommodate pilgrims.
“The vacant rooms available for rent now are about 10 times the number of pilgrims,” he added.

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