JEDDAH — Investors and hotel owners in the central area of Makkah have estimated losses of up to 60 percent this year. They claimed that these losses are due to the Haj Ministry's decision to reduce the number of Umrah visitors and cut down their period of stay this Ramadan. Only 500,000 Umrah visitors are allowed this year due to the ongoing expansion work within the Grand Mosque. Many investors and hotel owners have asked the ministry to compensate them for their losses. They said they will file lawsuits against Umrah services establishments for breaching their contracts. Deputy Minister of Haj Hatem Al-Qadhi said the ministry has nothing to do with contracts between investors and hotel owners. As such, the ministry is not obliged to compensate hotels for their losses. He said the ministry had notified Haj and Umrah establishments of the decision 60 days before its issuance. He added that the new regulations are for the safety of pilgrims. He said the ministry would be obliged to compensate the losses if it had approved the contracts between the investors and hotel owners. He pointed out that some Haj and Umrah establishments were granted large numbers of visas, but they only utilize them during Ramadan. The head of the hotels committee at the Makkah Chamber of Commerce and Industry, Waleed Abu Sab'ah, said the situation in hotels around the Grand Mosque is very discouraging. Hotel reservations have greatly declined due to the decrease in the number of Umrah visitors. He said hotel prices have dropped 30 percent in comparison to last year, and expects that the Haj season will also witness a decrease in pilgrim numbers. He said hotels cannot recover their losses from local Umrah visitors either, since their numbers have also decreased from last year. Saleh Al-Sulaimani, a hotel investor, said the Saudi Commission for Tourism and Antiquities (SCTA) has enforced international standards on hotels in Makkah's central area. The SCTA has also set rates in accordance with these standards, and therefore, hotels cannot raise their rates to recuperate some of their losses. He said most hotels guests are from outside the country and that local visitors do not usually stay in hotels. Fahad Al-Wethiani, an investor, said investors have to bear their losses in the cause of the country and they should be able to recuperate their losses in coming years. He doubted that the dispute between investors and hotel owners will reach the courts, and believes that an amicable solution would be found. — SG
