40% of the pilgrims' budget... Hajj season revitalizes the residential sector in Makkah and Madinah

Housing spending accounts for 30-40% of the Hajj budget with Hajj infrastructure investments expected to be worth 112 billion riyals.
Residential Sector Hajj Season

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The residential sector is one of the most vital sectors on which the work system of the authorities concerned with serving pilgrims and visitors is based to make the Hajj season successful and the pilgrims and visitors comfortable.

The residential sector is one of the most important sectors.

Spending on housing is the highest

. <According to a study by Umm Al-Qura University, the biggest impact Hajj appears in the real estate sector, especially since some studies indicate that what is spent on the housing sector accounts for 30-40% of the total budget of the pilgrim, which means that the housing sector has the lion's share of spending on Hajj. This spending has recently reflected on the activity of the real estate sector in Makkah, especially in light of the limited supply of real estate products.

1.8 million visitors to Medina

Regulatory efforts have resulted in the hotel sector in Madinah achieving a high occupancy rate and accommodating the increase in the number of visitors during the Umrah season this year "starting from the month of Muharram until the end of last Ramadan." The operators of hotels and licensed residential homes in Madinah are keen to provide booking offers for individuals and groups, improve the quality and diversity of their services provided to guests, and provide offers to attract guests for the upcoming Hajj season, where more than 1.8 million visitors are expected to arrive in Madinah during the pre- and post-Hajj period between May 20 and July 30, 2023."

The hotel operators have been keen to make the most of the upcoming Hajj season to attract visitors to the city of Madinah.

Madinah Central District

<There are many five-star hotels in the central area, south, north, and west of the Prophet's Mosque, which are operated and managed by international companies in the accommodation sector, They are staffed by qualified cadres of Saudis and residents in reception, reservation, hospitality and security services, in addition to many less-rated housing houses that provide guests with varying degrees of accommodation that meet the desires and possibilities of all guests, according to requirements that take into account the standards of cleanliness and quality of housing, at prices ranging between 150 and 1200 per room per day, depending on the hotel and housing classification, number and size of beds, and the services included in the reservation.

The central area of Medina is witnessing an accelerated pace of work to implement infrastructure works, including the implementation of hotel projects with international standards, to meet the growing demand for hotel services and support the Hajj and Umrah sector in the field of hospitality and accommodation, in order to increase the absorption capacity of the sector in the region and keep pace with the expected increase in the number of visitors over the coming years, in addition to continuing efforts to improve the urban landscape and humanize streets, roads and squares, to upgrade the quality of services that provide visitors to the Prophet's Mosque with comfort and enrich their visit experience to Medina.

These efforts are in addition to the efforts to improve the urban landscape and humanize the streets, roads and squares to improve the quality of services that provide visitors of the Prophet's Mosque with comfort and enrich their visit to Medina.

112 billion riyals infrastructure investments

Investments in Hajj infrastructure are expected to grow to SAR 112 billion by 2025, ahead of the SAR 93 billion recorded during the period between 2018 and 2020. The infrastructure includes a number of roads and means leading to Mecca provided by the Kingdom to facilitate the arrival of internal pilgrims to perform the rituals.

Infrastructure includes a number of roads and means leading to Mecca provided by the Kingdom to facilitate the arrival of internal pilgrims to perform the rituals.

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1151 hotels in Makkah receive pilgrims

<The Saudi government has invested large sums of money to develop the infrastructure and facilities of the Makkah Grand Mosque and encouraged the private sector to provide hotels and hospitality facilities to make it easier for pilgrims to perform the Hajj. These financial investments in infrastructure have facilitated the flow of visitors and enabled investors to develop their specialized facilities to serve pilgrims or market goods and services, coinciding with the Kingdom's targets to reach 30 million pilgrims and 5 million pilgrims by 2030.

These numbers are in line with the Kingdom's targets to increase the number of pilgrims to 30 million and the number of pilgrims to 5 million by 2030. <These numbers of visitors to the Holy House constitute an important purchasing power for many establishments, where the hotel and accommodation sector is making efforts to provide adequate accommodation, there are "1151 hotels in the city of Makkah with 450,000 hotel rooms and about 75,000 rooms in Medina." Work is underway to complete new hotels in the two cities to accommodate the increasing numbers of pilgrims and Umrah pilgrims, whose numbers are expected to reach 30 million visitors and Umrah pilgrims annually in 2030.

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Hotel rooms in the Holy Land

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450K

Hotel room in Makkah

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75K

Room in Medina.

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30 million

Visitors and pilgrims annually in 2030.