Saudi Arabia ramps up infrastructure to accommodate pilgrims

Muslims are obliged to perform the annual Hajj pilgrimage to Mecca - the fifth pillar of Islam - at least once in their lifetime if they are able bodied and have the financial means. While fewer than 100,000 pilgrims performed Hajj as recently as 1950, the number has ballooned in recent decades, reaching 2.9 million in 2011.

When factoring in Umrah, a shortened form of Hajj that can be performed at any time of the year, the number of people making pilgrimages to Mecca each year is forecast to rise to 13.8 million by 2019, says John Podaras, director Middle East & North Africa for Christie + Co. Fuelling this rapid growth is the steady rise in the number of Muslims worldwide - forecast to grow by 35% to 2.2 billion in 2030.

As Custodian of the Two Holy Mosques, Saudi Arabia's King Abdullah is responsible for providing safe and comfortable accommodation for pilgrims, and in shouldering this duty he has launched numerous multi-billion projects in recent years to prevent some of the tragedies that have occurred in the past due to overcrowding during Hajj.

Among the more notable improvements has been the expansion of the Jamarat Bridge in Mecca in 2008, which has helped to reduce crowding during the stoning of the pillars. Stampedes at the ritual have led to many deaths, such as in 2006 when at least 345 pilgrims were killed.

Another important investment has been the Mecca Metro that links Mina, Arafat and Muzdalifah with Mecca. The first phase opened in 2010, and authorities say the automated metro will carry up to 80,000 passengers an hour during Hajj this year. Mecca is also set to benefit from the $11.9bn Haramain High-Speed Railway project, which will link the holy city and Medina to Jeddah, an entry point for many pilgrims, to relieve road congestion.

Huge expansions taking place the Grand Mosque in Mecca and the Prophet's Mosque in Medina will also raise capacity for pilgrims in these places of worship.

Many hotels in the pipeline

The steady rise in the number of visitors to these holy cities is a boon for hoteliers, and virtually all hotel companies are vying to add more properties in these locations, Podaras said. "In many ways the Mecca and Medina accommodation market is in the unusual situation of almost unlimited demand as evidenced by the existence of a quota system for visas from most countries and the growing numbers of Muslims worldwide," he noted.

Jabal Omar Development is leading the way by building 38 hotels on 24 million square feet of land near the Grand Mosque. The hotels will be managed by 28 companies including Hyatt, Marriott and Starwood, and will add 13,500 rooms to Mecca's hospitality industry when they're completed in five years.

Hilton Worldwide also has six hotels under construction in the development and would be open to building more in the future in Mecca to meet rising demand, says Essam Abouda, the company's VP of operations for the MEA region. Hilton's hotels in Mecca and Medina have been the company's top performers in the region so far in 2012, he noted, as they typically run at full capacity during peak season and are also seeing a rise in corporate business thanks to the many projects underway in the two cities.

"I always say there is only one Mecca and one Medina," Abouda said. "It's one of the things you have to do as a good Muslim if you have the means. Visitors to these two cities continue to rise each year and there is more opportunity to grow due to the enlargement of the Haram (Grand Mosque) and the number of hotels coming up."