Saudi Arabia needs to make more cash from the principle spiritual pilgrimage. However, it may possibly’t. Through the annual Hajj week, Mecca is already full to the brim. On common, Hajj will get a large 2.4 million pilgrims. Out of security considerations, it’s laborious to danger bumping up the numbers. Individuals can get harm.
So, Saudi Arabia determined it may possibly make more cash by exploiting Umrah. In spite of everything, Hajj is just for one week a 12 months, however Muslims could make Umrah any time, all 12 months spherical.
So, the Hajj ministry is at the moment dreaming up methods to get extra individuals to do Umrah anytime earlier than and after Hajj.
How A lot Cash Do Hajj and Umrah Truly Contribute?
Each pilgrimages produce $12 billion annually-$8 from Hajj and $4 from Umrah nearly 3% of non-oil GDP.
This determine is forecast to extend to $150 billion by 2024. Nonetheless, the Covid-19 quarantine of 2020–22 has scuppered this objective.
The present huge $51.2 billion Saudi authorities investments in native transport and infrastructure in Mecca and the area might end in 100,000 extra jobs.
The long-term goals are to create extra jobs for Saudis, entice pilgrims from higher-value Muslim minority nations and cut back ready instances by encouraging pilgrims to return for Umrah at any time in the course of the 12 months as an alternative of Hajj.
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Income Supply
To grasp income ensuing from Hajj and Umrah it’s helpful to know its supply.
Yearly, the Hajj pilgrimage generates $8 billion and Umrah $4 billion, and it’s projected to be $150 billion by the 12 months 2022.
Formidable, even when unrealistic.
How Many Pilgrims Do Hajj And Umrah?
At the moment, the common whole variety of Hajj guests is 2.4 million and there are 18.5 -20 million Umrah guests yearly, equalling a complete of 20+million for each.
Hajj -Umrah Ratio
The ratio of Hajj to Umrah pilgrims is 5:36.
So, for each Hajj pilgrim, there are 7.2 Umrah pilgrims. In share phrases, there are 25.5% Hajj pilgrims and 74.5% Umrah pilgrims.
How A lot Cash Do Pilgrims Spend In Mecca For Hajj?
The Mecca Chamber Of Commerce states that pilgrims spend between $5,000 and $6,500 to return to Hajj.
It estimates that 75%-80% of the quantity is used for lodging, meals, presents, transport, and communication.
The rest is for private spending in and across the two cities of Mecca and Madinah.
The Chamber additionally calculates that pilgrims spend a median of $700-$1,000 throughout their ten-day keep in Mecca and Madinah. The variety of days of keep varies in accordance with nationality.
The MasterCard Survey reckons that the determine as being nearer to $1,350.
How Does The Saudi Authorities Make Cash?
In accordance with a 2019 Mastercard survey, pilgrim spending in Mecca alone reached $20.1 billion in 2019.
Near 10 million worldwide pilgrims are partly answerable for this superb $21 billion of spending in Mecca; Hajj 1,855,027 & Umrah 6, 765, 614.
Add to that one other 18.5 million home pilgrims, and the full reaches shut to twenty-eight million guests to Mecca yearly.
In accordance with the identical Mastercard report, the common size of keep of every pilgrim is 15 nights and with a median every day spend of $135.
Click on right here to get extra in-depth evaluation and statistics about how a lot revenue Hajj and Umrah generate for Saudi Arabia
