Report: Haj and Umrah: Developments and Opportunities
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12 January, 2017 | Industry Report
|Description||Salaam Gateway Islamic Economy reports series|
|Executive Summary||In 2016, an estimated 8.3 million pilgrims spent $22.7 billion (including airfares) on haj and umrah. This accounts for 14 percent of all Muslim outbound spend on travel in the same year. Pilgrims require a range of products and services for these spiritually significant journeys. This report looks at the market growth trajectory, key drivers, and major service providers across various categories, and highlights key opportunities for stakeholders seeking to access this lucrative market opportunity. It will be a highly valuable read for a range of stakeholders, including policymakers, investors, and service providers.|
Photo: Muslim pilgrims walk on roads as they head to cast stones at pillars symbolizing Satan during the annual haj pilgrimage in Mina on the first day of Eid al-Adha, near the holy city of Mecca, Saudi Arabia September 12, 2016. REUTERS/Ahmed Jadallah
Pilgrimage to haj and umrah represents a fundamental part of the Islamic Economy, with 8.3 million pilgrims spending $22.7 million in 2016. This substantial expenditure is expected to grow by 11.1 percent CAGR to reach $44.3 billion in 2021.
$12 billion of pilgrim spend benefits the Saudi Economy directly, and represents 53 percent of Saudi Arabia's $22.6 billion tourism industry in 2015. Growth is driven by underlying demand, with a 11.3 percent CAGR between 2016 and 2021 in the number of Muslim pilgrims, as well as capacity enhancements, where the Saudi Arabia government is spending $82.7 billion on projects to extend capacity of the grand mosque and main airport, to improve rail connectivity, and to safely allow more pilgrims into major sites.
The needs of Muslim pilgrims seeking to complete haj and umrah are diverse - ranging from food and clothing to finance providers.
This report provides an overview of the key ecosystem of needs, spanning six key lifestyle sectors, and narrowing in on three specific segments including - approved travel packages (10 select key global players identified), takaful health insurance (11 select key global players presented). and haj and umrah savings plans (10 key select global players presented).
The report has also identified seven key product and service innovations to enhance the experience for pilgrims. launched between 2012 and 2016.
Market growth, underpinned by the varied needs of pilgrims, creates lucrative opportunities for various stakeholders.
>> Real estate firms and hospitality providers can benefit from increasing the availability of mid-market accommodations, with close to 5,500 mid-market rooms to be constructed for pilgrims by 2017
>> Entreprenurs can also benefit from increasing the availability of private accomodations and further identifying and addressing unmet needs of pilgrims, including exporting healthy snacks infused with traditional ingredients
>> Financial institutions can enhance product offerings for haj savings and provide Shariah-compliant construction finance
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