In line with Vision 2030, Crown Prince Mohammed Bin Salman Al Saud seeks to enhance the pilgrimage experience by fostering collaboration between private and public sectors. Dr. Tawfiq Al-Rabiah, the Hajj and Umrah minister of Saudi Arabia, urges cooperation to elevate services in Makkah and Madinah. A meeting convened by investors and ministers at the Makkah Chamber of Commerce underscores the economic importance of public-private partnership in reviving the pilgrimage sector.
Key strategies explored for Umrah, Hajj revival.
Investor Ahmed Bajaiffer suggested expanding cooperation by assigning supervisory tasks to multiple airport reception, offense monitoring, and surveillance firms, previously managed by the Ministry of Hajj and Umrah (MoHU). Additionally, the proposal of establishing a sovereign fund for Umrah and Hajj development, overseen by the state, was discussed.
“The fund will back private sector initiatives in return for investment partnerships overseeing all sector operations,” Bajaiffer explained. Additionally, the implementation of a centralized system and a mix of public and private subsidiaries will ensure uninterrupted Umrah services during the pandemic and the expansion of Masjid Al-Haram.
“Now, there’s greater flexibility for innovative ideas to enhance services within a fully nationalized sector,” he emphasized. Additionally, he noted, “The stronger the industries within the Hajj and Umrah system become, the more beneficial the results will be.”
During the meeting, authorities and investors agreed on the need to pinpoint areas where confidence has been compromised in order to improve services. Once the most affected areas are identified, restoring confidence in the services offered and revitalizing Umrah and Hajj will become more achievable.
Insights from Moshin Tuttla, Head of World Hajj and Umrah Convention
Moshin Tuttla, head of the World Hajj and Umrah Convention, noted, “Prior to COVID-19, we observed a consistent annual growth of 10 percent in pilgrim numbers, reaching around 18 million Umrah pilgrimages in 2019, aligning with the forecasted figures of Vision 2030. However, the significant decline in pilgrimage numbers due to COVID-19 and its variants has severely disrupted the ecosystem that sustains the operations of Hajj and Umrah pilgrimages.”
“What’s important to understand is that the aim is to establish a self-sustainable Hajj and Umrah ecosystem, minimizing reliance on financial subsidies due to declining oil revenues. The goal is to create a model where the pilgrimage experience aligns with pilgrim expectations and is sustained by the sector’s own performance,” he emphasized.
Key barriers to anticipated growth include chain debts, confidence breaches within the Hajj and Umrah ecosystem, talent loss from various nations, and pandemic-related uncertainties. “By pinpointing the core challenges hindering private sector recovery, we can formulate practical strategies to revitalize the Hajj and Umrah sectors,” Moshin noted.
“As an ecosystem, we must pinpoint areas where confidence has been compromised and devise plans to restore it. This involves attracting new investors to manage essential services or offering bailout packages to restart the worst-affected sectors,” remarked Tuttla. Additionally, he stressed the importance of training and introducing new staff to ensure a high-quality and safe Umrah and Hajj experience.
Uniting the private and public sectors will facilitate the development of a successful, self-sustaining ecosystem aligned with Vision 2030, thereby revitalizing Umrah and Hajj and attracting more pilgrims.
