Hotels and umrah companies in Makkah are seeing up to 50% of their bookings cancelled this Ramadan amid the growing swine flu threat.
Businessmen operating in the umrah sector have called upon the Hajj Ministry for financial compensation, it was reported on Thursday.
Walid Abu Sabaa, chairman of the Hotel and Tourism Committee at the Makkah Chamber of Commerce and Industry and owner of a hotel group, said cancellation of hotel bookings had reached 50%, Arab News reported.
“Occupancy of hotel rooms declined to 30% in the first week of Ramadan, compared to 80% during the same period last year,” he told the paper.
He estimated his group’s total loss at SR10 million (US $2.7m) during the first two days of Ramadan. “Cancellation of bookings at our hotels has reached about 90%. This is a big catastrophe.”
Abu Sabaa blamed exaggerated reports about swine flu for the unprecedented fall in umrah business.
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“There is considerable fall in demand. This has forced five-star hotels to offer 50% discounts to win clients,” he said, estimating losses of most Makkah hotels at 30-40%.
He further called on the Hajj Ministry to understand the problems facing umrah companies and other businesses in the sector and help offset their losses, the paper reported.
He added that the restrictions imposed by the Egyptian government on pilgrims resulted in increasing losses to Saudi umrah businesses. Some 400,000 Egyptians were expected to perform umrah this Ramadan.
Saad Al-Qurashi, chairman of the Haj and Umrah Committee at the Makkah Chamber of Commerce and Industry, said swine flu had caused losses of SR300 million ($80m).
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