Pound's Fall Against the Saudi Riyal Shakes the Umrah Season and Raises Prices by 20%

Pound's Fall Against the Saudi Riyal Shakes the Umrah Season and Raises Prices by 20%

Confirming Travel Yalla's exclusive: Prophet's Birthday Umrah program prices rise, and the increase in visas is a test tube for the end-of-season quota

The coming Umrah season of 1437 AH is one of the most important seasons because of the several changes and challenges it is seeing compared with previous seasons, starting with the rise in prices of Prophet's Birthday Umrah programs, which mark the start of the season. According to estimates by Egyptian tourism companies, gathered during Travel Yalla's tour of the Umrah forum held at the end of last week, which brings together major Egyptian companies and Saudi agents, the increase ranges between 15% and 20%, despite the relative stability of Umrah service prices in Saudi Arabia.

Tourism company owners attributed this rise to the collapse of the Egyptian pound's exchange rate against the Saudi riyal, which reached EGP 2.14, and against the US dollar, which officially reached EGP 8, in addition to the increase in the tax on airline tickets.

In this context, Ehab Abdel-Aal, head of Bloomon Tours and a member of the general assembly of the Chamber of Tourism Companies, said in exclusive statements to Travel Yalla that the increase in Prophet's Birthday Umrah program prices will be no less than 20% this year, due to the decline of the pound against the Saudi riyal, which reached EGP 2.14 compared with about EGP 2 last season, in addition to the increase in the airline ticket tax by EGP 100 on economy class and EGP 150 on first and business class, while the prices of other Saudi services have not changed.

In a related context, Atef Abdel-Fattah, general manager of New Sky, representative in Egypt of the Saudi company Al Fawzan for Umrah Services, expected Umrah program prices to rise as a result of the riyal's higher exchange rate against the Egyptian pound, which is expected to reach EGP 2.30 compared with about EGP 2 last season, in addition to the increase in the tax on airline tickets from Egypt and the higher fee for overland Umrah, covering the ticket and departure via the Arab Bridge, which will weaken demand for it because it will be close to the price of an airline ticket.

He noted that prices for the Prophet's Birthday Umrah in economy 3-star quadruple accommodation will reach EGP 4,800, compared with EGP 4,300 and 4,500 last year, and may reach EGP 5,300 for double and triple accommodation, while 4-star starts from EGP 6,500 and 6,800, and 5-star reaches EGP 9,500.

Abdel-Fattah explained that this season faces a decline in hotel capacity in Medina as a result of the demolition of hotels for the expansion of the Prophet's Mosque, which will necessarily raise accommodation prices there because of the reduced number of available rooms. However, if the Ministry of Tourism approves new rules allowing accommodation farther from the Holy Mosque than last year, this will make it possible to find better prices.

He pointed to what the "Omrati" conference in Sharm El-Sheikh approved: increasing the permitted distance from the Grand Mosque in Mecca from 1,250 meters to 1,500 meters, while in Medina a distance of up to 700 meters should be allowed instead of the central area of roughly 300 meters around the Holy Mosque, beyond which accommodation counts as a violation, in addition to distributing the quotas of suspended agents among current ones. He noted, however, that these decisions are not binding because they have not yet been approved by the competent authorities on the Egyptian and Saudi sides.

Regarding the Saudi Ministry of Hajj's decision to open Umrah visas to reach 1.25 million, Abdel-Fattah said it is a test tube for the possibility of increasing visas under the quota system that begins on the first of Rajab, with the door opened for the seasons before it up to the aforementioned limit. He expected that if this succeeds, the quota system will be increased from 500,000 to 750,000 visas starting next Rajab.

He affirmed that the rise in the number of Umrah pilgrims has nothing to do with the crowding crisis among Hajj pilgrims and does not raise any fears, given the different rituals, and that Saudi Arabia is capable of providing the services. There was some annoyance at the Saudi police's organizational procedures, he said, but not implementing them could lead to bigger problems.

He urged Egyptian Umrah pilgrims to deal directly with the tourism company, review the contract and the program's details and prices, and stay away from brokers, who have contributed to raising Umrah program prices and to selling fake programs or programs with unclear information, such as listing a hotel at a stated distance from the Grand Mosque that is much shorter than the real one, and charging the pilgrim a higher price than the one actually announced by the company, to maximize the broker's profit margin.

For his part, Osama Hassan, branch management director at Al Mahmoud Tourism, affirmed to Travel Yalla that the rise in the Saudi riyal's exchange rate against the pound will have the biggest impact on prices for the coming Umrah season, because all services are paid in riyals, except airline tickets, which are paid in Egyptian pounds. This will be a major obstacle to Saudi Arabia's decision to open the way for visas to reach 1.25 million, which aims to increase the number of Umrah pilgrims.

He noted that there is a normal annual increase in operating costs ranging from 10% to 15%, so the total price of an Umrah program could rise by more than 30%. He expected trip program prices to start from EGP 6,000, compared with about EGP 4,500 last year, and to reach up to EGP 9,000, but costs for the coming season have not yet been determined.

Tags:#Umrah#Umrah Season#الجنيه المصري#Saudi Riyal#الأسعار#Umrah Prices