Cut in Umrah visas:
Travel agencies abroad hit hard 
11 June 2013 - 02 Shaban 1434 H
JEDDAH — The recent decision to reduce the number of Umrah visas has affected the religious tourism market badly, said agencies operating outside the Kingdom.
However, industry experts still believe that targeting local pilgrims can help hotels and businesses that have been hit by the Ministry of Haj’s decision.
Mustafa Jamal, a partner at an Egyptian Haj and Umrah business, told Saudi Gazette that they have booked four hotels in Makkah’s Al-Aziziyah District and have paid a primary deposit to these hotels ranging from SR100,000 to SR150,000 each.
He said: “We normally provide our service to 5,000 to 6,000 pilgrims.
“However, the sudden drop in Umrah pilgrims forced us to revise down our expected number of clients to only 1,000.”
Their company canceled its bookings at three hotels, costing them SR300,000 because the deposits were non-refundable.
Abdul Ghani Al-Ansari, head of the tourism committee at the Madinah Chamber of Commerce and Industry, said that there would be no losses for hotel owners if they concentrated on local pilgrims.
Local demand can cover any losses resulting from the decrease of pilgrims coming from abroad, said Al-Ansari.
He said: “We used to welcome only 3 million pilgrims from outside the country until two years ago, when the Ministry of Haj was more generous with the private sector by increasing the number of visas to 6 million.
“The sudden decrease is what has shocked the private sector.”
Al-Ansari said the committee would be having a meeting to discuss the new decision to decrease the number of visas.
He said: “Our only issue with the Ministry of Haj is that they should engage with us when they are making decisions.
“The expansions of the Holy Mosques were not sudden projects.
“Rather, they were scheduled earlier and, therefore, in the same manner we should have been notified earlier.”
Meanwhile, the national committee for Haj and Umrah estimates that investors would suffer SR5 billion worth of losses due to this decision.
The Ministry of Haj also said that each pilgrim could stay in the Kingdom for only 15 days instead of 30, as was previously the case.
http://www.saudigazette.com.sa/index...20130611169447 Plans to reduce the number of Hajis 
11 June 2013 - 02 Shaban 1434 H
JEDDAH – Directives have been issued to reduce the number of external pilgrims by 20 percent and those from within the Kingdom by 50 percent starting this Haj season.
According to informed sources, the departments are currently working out modalities for the implementation of the directives.
The sources said the reduction in the number of local and foreign pilgrims was necessitated by the giant development projects currently being undertaken in the Grand Mosque and the Holy Sites.
They said these projects were aimed at enabling the pilgrims and visitors to complete their Haj and Umrah rites in ease.
Haj Minister Dr. Bandar Al-Hajjar denied that the number of visas granted to Umrah companies were reduced this year but said the number has been distributed to cover the whole year.
“The companies should use the visas granted to them on time and should not hold them to be used in one month,” he said. The minister said that under the new arrangements the visas will be granted on a monthly basis so the companies should use them the same month. “If the visas are not used during the same month, they will be canceled,” he warned.
The minister said he has noted that Umrah companies kept the visas granted to them for the months of Rajab and Sha’aban for use in the month of Ramadan. “This practice will disrupt the ministry’s plans and the system of visa issuance which is tied to the provision of accommodation, transportation and other services,” he said.
A number of hotels and Umrah companies have complained that the new arrangements will not enable them to make long-range plans because they will be obliged to use the visas for the same month.
They said the arrangements will not satisfy their needs or help them make early contracts. “We will not be able to make our programs for the season if we are not able to know earlier the number of visas that will be granted,” they said.
http://www.saudigazette.com.sa/index...20130611169433