Saudi hotels fear $266m losses amid swine flu threat

HOLY CITY: Mecca in Saudi Arabia. (Getty Images)

Saudi umrah tour operators and hotel owners in Mecca and Medina held an emergency meeting over the swine flu threat which they say could leave many bankrupted as pilgrims stay away.

Companies said they anticipated to lose more than SR1bn ($266m) this Ramadan season due to the quota limits put on the number of pilgrims to the kingdom, according to a report in the Saudi Gazette.

Some pilgrimage tour operators told the meeting they feared bankruptcy, while Medina hotel owners said expected to see losses of up to 70 percent.

Many hotels say their expect occupancy rates during umrah to reach only 30-40 percent.

The companies urged Saudi Arabian authorities to help ease the situation by extending and issuing visas for pilgrims.

Marwan Hifdhi, deputy head of the Hotel and Tourism Committee at Medina’s Chamber of Commerce and Industry, told the paper: “Losses at hotels and stores in the central zone during this month have been huge by any standards.

“Most tourist and Umrah companies have suffered great losses that will only increase in Ramadan due to cancellations.”

Many hotels have been slashing their room rates in a bid to attract customers, the paper said.

“A 300-riyal booking can now be had for 150,” said Nami Al-Amri, head of Ilyas Hotels.

“Large numbers of visitors and pilgrims from Tunisia, for example, have canceled their arrangements and most local stores are being severely affected, with some even struggling now to pay their rent.”

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READERS' COMMENTS

hajj
Posted by mohammed on Tuesday 25 August 2009 at 19:27 UAE time


is the hajj now all about profit. these hotel should be charity hotels that charge no amounts of money for hajj.

TIT for TAT
Posted by Average Muslim on Saturday 22 August 2009 at 14:40 UAE time


These hotel owners have already made profits in the past years for the next 100 years now its time for them to pay back. This is ALLAH's way for letting them think that they should have listened to the pleas of an average muslim before charging huge amounts of money.
I sincerely hope that InshaALLAH soon it will be over but the hotel owners will take a good lesson out of it and make residence affordable to poor muslims as well and not just look towards their own monetary benefits.

Can not believe it
Posted by Someone, Dubai, UAE on Thursday 20 August 2009 at 17:28 UAE time


It is really surprising to read such article and the concern of business people from companies or hotels about their loses. How these people dare to talk about loses and they do not care about people life, helath, and life loses? So they just want to make profits and to hell with muslims' life!!! How they can think this way??

What losses ?
Posted by OS, Jeddah, KSA on Thursday 20 August 2009 at 14:37 UAE time


I think this is God's way of getting even with the hotel owners. Their greed has made it near impossible for average Muslims to make the pilgrimage in humane conditions.

These losses should even out the huge profits they have made in recent years.

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