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The city is particularly well served in terms of hotels—almost two-thirds of all those in Saudi Arabia can be found there
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Before the pandemic it was a thriving sector, its growth fueled by the ever-increasing numbers of visitors from around the world
Still reeling from blows of the lockdown imposed to curb the Covid-19 pandemic, Makkah’s hospitality industry is hopeful of recovery and getting back to business. The experts predict hotels could begin to see results with the next two years.
The city, the third-most densely populated in the Kingdom, is particularly well served in terms of hotels — almost two-thirds of all those in Saudi Arabia can be found there. Before the pandemic it was a thriving sector, its growth fueled by the ever-increasing numbers of visitors from around the world who flock to Makkah for the annual Hajj pilgrimage or to complete their Umrah rituals.
COVID-19 changed everything. However, experts predict that after the dramatic decline in business caused by the pandemic, “hotel recuperation” plans could begin to yield results by 2023 as the world slowly starts to emerge from lockdown.
Fadhel Manqal, manager of a hotel in the city and a member of the Makkah Chamber of Commerce and industry hotels committee, told Arab News that the sector has faced immense challenges for almost two years.
“The sector has experienced an economic downturn,” he said. “This has crippled its economic power, which is an important contributor to the local economy. It has borne the burden of the effects of the pandemic, which has had a negative effect on all areas of the global economy, including significant implications for the hotel sector.
“Makkah’s hotels were not spared; they have suffered substantial losses, leading some to close down and others to suspend their activities or recover partially. Many have suffered losses worth billions.”
Manqal said that the hotel sector in Makkah is the strongest in the Middle East, with more than 1,300 hotels that are expected to receive 30 million pilgrims by 2030, as visitor numbers increase as a result of the National Transformation Program and the wider Saudi Vision 2030. But it is still suffering real hardship, he added, despite the early signs of recovery.
The hospitality industry has been irreversibly changed by the health crisis, he said, adding that despite the efforts of some governments to minimize the effects and reduce losses, it has been an economic catastrophe for the sector and the fates of many businesses hang in the balance.