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Religious Tourism

Haj and Saudi economy

 

DR. WAQUAR ANWAR,SECRETARY, BOARD OF ISLAMIC PUBLICATION | Issue Dated: November 4, 2012, New Delhi
Tags : Kingdom of Saudi Arabia | Haj | Mecca |
 

A significant change occurred in the economy of Kingdom of Saudi Arabia (KSA) after discovery of oil. Prior to that, the KSA economy, particularly of the two holy cities of Mecca and Medina and places en-route, was depended overwhelmingly on Haj. Now, the dependence has reduced. However, the role of Haj in the economy is significant even today.


Another noteworthy development is the emergence of Umrah, particularly in the month of Ramadhan, in addition to Haj pilgrimage, in the last two decades. It is estimated that Haj and Umarah taken together contribute more than 20 per cent of non-oil Gross Development Product (GDP) of the Kingdom. It is further estimated that this income comprises about seven per cent of the KSA’s total GDP.


The emergence of Umrah in the economy can be understood by the fact that it is estimated that its revenue is marginally more than that from Haj. Of the 60 lakh pilgrims visiting Saudi Arabia every year, the number of Haj visitors is just over 23 lakhs.


These figures are, at best, estimates because there is no authentic basis of collection, reporting and analysis of data. There is dearth, if not unavailability of published figures of revenues generated by Haj either.
The revenue from Haj includes rent that the building owners charge in Mecca and Medina in the pilgrimage seasons. Transport sector including cross-border transport is another major revenue generator. Pilgrims tend to buy gifts and mementos as well. All this benefits the host country. Perhaps no country in the world can match the revenue generated by tourism as in KSA. 


Haj provides employment opportunities for the citizens of KSA. Obviously, most of the Haj related services can be performed without any special requirement of specific skills. Further, the level of generation of income within less than two months is lucrative for individuals and families. In addition to the Saudi citizens, Haj provides ample employment opportunities to non-Saudi residents as well.


A major source of mass employment is the development of infrastructure and construction. The Saudi government has been developing Haj facilities in a grand manner. Its continuing and future development plans are ambitious enough to ensure continued employment. Changing Mecca’s landscape with heavy construction plans, construction of mono rails connecting Mecca, Mina, Mudalifa and Arafat – the places where the pilgrims move during Haj rituals – Railway projects for joining different cities of the Kingdom including Mecca and Medina, revival of Hajaz railway for facilitating pilgrims from Turkey, etc are in the pipeline.


A significance of government expenditure in public projects is that it is it provides opportunities to the common man to participate in the growth of the economy. It ensures circulation of money in the society.
The concept of circulation of money for overall development of the society is an established fact today. The holy Quran described this in a very effective manner. While describing the use of state fund (fa’i) the Quran says that its beneficiaries should be the public at large as against the select few. The reasoning is “...so that it (the wealth) may not merely circulate between the rich among you” (Al-Hashr, 59:7).


A title of the Saudi king is khadim harmain sharifain (servant of the two holy mosques). All the Haj pilgrims bear testimony to the fact that the king and his administration has been proving true to this title. It is, in fact, their honour that they are serving the holy places and assisting the pilgrims from all over the world to perform Haj as smoothly as possible. Earlier rulers and administrators of Mecca for the last several thousand years have been performing this duty. It is not that just the individual rulers, administrators or kings, by whatever name they might have been called, that they have been dutiful but all the residents of Mecca and its vicinity have felt duty-bound to serve the Haj pilgrims. That was true in the past as it is true today. 

 
The difference between the “yesterday” and the “today” is that the economies are today not dependent on Haj pilgrimage alone. But the economy of the residents of the holy places and those en-route, the society at large there, is dependent on the services they are providing to the places and their visitors.


It should be said that the service which the government and the society of the Kingdom of Saudi Arabia is doing is not guided by the factor of economy alone. It has become ingrained in their nature and they are performing it well. However, all said and done the economic factor cannot be ignored altogether.

(The views expressed by the author are personal)

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Issue Dated: Feb 5, 2017