Speaking exclusively to Hotelier Middle East, Mohamed Adel, Hilton’s cluster marketing manager, said that hotels’ average daily rates (ADR) in the central area of the holy city of Makkah, Saudi Arabia, have dropped 15% since 2018.
Adel blames the decrease on an increased number of keys in the holy city, as well as increased Umrah visa fees.
He said: "Today, there are 25,000 rooms in the central area surrounding the holy mosque,” adding that there has been a 300% increase since 2011.
He also put the decrease in ADR down to Umrah visa fees, which he said today cost 2000sr (US$533.16), up from 300sr ($80)a few years ago.
Adel said that many hotels are suffering. "Hotels are having to work harder for their money,” he said. “They have to differentiate in their offering, such as add-ons like views of the holy mosque, parking spaces, late check-outs, and half board."
Adel went on to explain how hotel guests to Makkah have matured and expect more benefits from hotels today. “Hilton provides a Hilton Loyalty programme that allows guests to earn points and redeem them on hotel services.”
Adel said Hilton has a number of hotels in Makkah and the Jebl Omar district of the city.