Global Significance and Economic Role

Mecca and Medina, pivotal to Islamic pilgrimage, hold global significance as they draw millions of visitors annually for Hajj and Umrah. This religious tourism, contributing 12% to Saudi Arabia’s GDP, underscores the critical role of consulting companies in Saudi Arabia in shaping infrastructure and services. These efforts align with Vision 2030’s goal to support the growing influx of pilgrims. The spiritual and economic importance of these cities emphasizes the need for robust developments, a priority for leading entities like Insights and Saudi real estate companies engaged in this transformation.

Capacity and Key Initiatives

Mecca, offering approximately 50,000 hotel rooms, and Medina, with around 30,000, face challenges in meeting peak-season demand, with Q1 occupancy rates of 76% and 79%, respectively. Annual occupancy averages remain at 63% in Mecca and 72% in Medina, reflecting underutilization outside peak seasons. Addressing these gaps, major initiatives like Kidana Development aim to enhance lodgings and transport at Hajj sites. Meanwhile, Masar Mecca, a $27 billion project, boosts urban mobility with pedestrian boulevards and hotels, and Al-Haram Smart City leverages AI and IoT to streamline logistics. These transformative efforts, supported by real estate advisory services, tackle high costs during peak seasons and the scarcity of mid-range and budget accommodations, improving accessibility and aligning with Vision 2030’s goals.