City Travel Briefing: Mecca

Holy destination for religious tourism

Mecca is a centre of Islam and home to the most sacred holy sites. Thus, while it is not the largest city in Saudi Arabia, it is in many ways the most strategic city in the Kingdom, attracting millions of Muslim tourists annually to perform religious duties.

Saudi 2030 Vision boosts investment in tourism

The Kingdom is undergoing rapid change to diversify the economy under the Saudi Vision 2030 initiative to bring the country forward in terms of technology and other advancements. The vision is supported by significant investments in all sectors,including tourism, and thus it is planned to double the capacity to accommodate more religious tourists for Mecca.

Lodging supply remains a challenge

The seasonality of religious tourist to Mecca, with peak season of Ramadan and Hajj, depict an undersupply of hotels and tourist facilities. Due to the lack of efficient public transport, the lodging sector continues to grow within Mecca and closer to the Grand Mosque.

Investment in infrastructure and services

The government has realised challenges to manage and facilitate a large number of religious pilgrims, and thus many infrastructure projects are likely to be completed in the near future, such as high-speed rail, metro networks and new airport terminals.

Raising profile of historic and archaeological sites

With many historic sites expensed during the expansion of the Holy Mosque, the government aims to preserve notable sites in Mecca, such as Thour mountain, Al Nour mountain, Taneem mosque, and raise the profile of these sites. There are plans to open Mecca Museum to highlight the historic significance of the city.

Value-added taxes and new visa prices may impact travel

Saudi Arabia introduced a Value Added Tax of 5% on goods and services,beginning 2018, as well as revised visa fees to increase tourism receipts. These steps are likely to impact the sector to some extent. However, in the larger picture industry trends such as the emergence of low-cost carriers and online travel platforms are likely to offset such effects.