Hotels in Makkah at Full Capacity as Hajj Pilgrims Flock to Holy City
The holy city of Makkah is experiencing a surge in hotel occupancy rates as Muslims worldwide flock to the city to perform Hajj. According to Abdulaziz Al-Aboudi, CEO of Thakher Development Co, a real estate firm focused on the hospitality sector, hotels in Makkah have reached 100 percent capacity. This is a significant increase from the 80 percent rate observed during the last Ramadan. The Kingdom has already welcomed over 2 million pilgrims in 2023, thanks to the government’s measures to provide enhanced facilities and accommodations for travelers visiting the holy cities.
Occupancy Levels in Makkah and Madinah Increase
Global property consultant CBRE noted in a recent report that the occupancy levels of Makkah and Madinah increased by 21.2 and 18.5 percent, respectively, in the first quarter of 2023 over the same period last year. The report stated that the rise could be attributed to removing visitation restrictions and the beginning of Ramadan. The average daily rate in Makkah and Madinah also rose significantly by 91.5 percent and 62 percent between January and March this year compared to the same period last year.
Booming Time for Construction and Hospitality Sectors
The improving performance of hotels in Makkah and Madinah indicates a booming time for the construction and hospitality sectors. Al-Aboudi revealed that his company has recently opened the Park Inn by Radisson Hotel and obtained the necessary Hajj license for its operation. He emphasized that the remarkable growth in the hospitality industry of the Kingdom’s holy sites aligns perfectly with the goals of Vision 2030, reflecting the transformative impact of the national vision.
Thakher Development Co. is the master developer for the Thakher Makkah infrastructure project, which is around 1 km from the Grand Mosque and near the holy sites of Muzdalifah, Mina, and Arafat. The project covers an expansive area of 320,000 sq. meters, offering ample space for development. Upon its completion, the project will comprise approximately 100 diverse land plots designed for hotels, residential buildings, and commercial establishments.
Vision 2030 Goals
The CEO of Thakher Development Co. noted that the impressive growth in the hospitality industry of the Kingdom’s holy sites aligns perfectly with the goals of Vision 2030. The national vision aims to accommodate 30 million Umrah performers and 6 million pilgrims by 2030. The current strong performance confirms the ambitious vision of the Kingdom of Saudi Arabia, which aims to transform the country’s economy and society.
Conclusion
The surge in hotel occupancy rates in Makkah is a testament to the government’s efforts to provide enhanced facilities and accommodations for travelers visiting the holy cities. The rise in occupancy levels can be attributed to removing visitation restrictions and the beginning of Ramadan. The improving performance of hotels in Makkah and Madinah indicates a booming time for the construction and hospitality sectors. The goals of Vision 2030 align perfectly with the impressive growth in the hospitality industry of the Kingdom’s holy sites.