Hotels in Makkah have increased room rates by as much as 100% to cash in on the surge in visitors during the first week of Ramadan, according to Gulf News.
The price hike has forced many of the Umrah pilgrims to cut short their trip to Makkah and spend the remaining days in the nearby cities of Jeddah and Taif.
Speaking to Gulf News, some market sources attributed the increase in price to the market conditions of high demand and low supply.
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More than 3,000 properties have been demolished in northern and north-western areas of the holy mosque as part of the largest ever expansion in the history of the Haram.
Most of the demolished buildings were hotels and residential buildings.
Hotels in the central Haram area and the adjoining regions in Makkah have registered 100% occupancy over the first days of the fasting month of Ramadan.
The average price of a room at a five-star hotel shot up to SR 4,000 (AED 3,918) per night this week. The average rate for a suite rose to more than SR 10,000 in the first 10 days of the holy month.
It is expected that there will be another 20% increase over the coming days. There has been a rise in the rates for hotels and apartments the closer their proximity to the Grand Mosque.
Most of the hotels are reporting booking at 90% for the last 10 days of the holy month.
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