2022 – Hajj is back… but oh, so Expensive!
I originally wrote an article in 2017 as to why Hajj is getting so expensive. Without a doubt it is now even more relevant to try and explain this and dispel the idea that Hajj agents are ripping people off.
I am not writing to try and justify the increases in Hajj prices year upon year, but merely to try and give you some insight into what I believe to be some of the main reasons.
This is a question I hear all the time and it perplexes me when I find people still saying, “I will wait until it gets cheaper.” In 1989, I paid $2,000.00. In 2022 you will pay almost $20,000.00 per person. That is an increase of 900% in 33 years. And not once in the last 33 years, did the price come down. In my opinion I don’t think it will come down next year either.
So, what are the main reasons for such a steep increase this year. As this article is limited in word count, for a more detailed explanation of the price structure, please see my previous blogs from 2017 – Part 1 and Part 2
- Mina, Arafah and land transportation in Saudi is the main element that affects the cost a hajj package and the cost is determined by the Hajj Ministry, which has increased by 100% this year over 2019
- The VAT in Saudi has increased from 5% to 15% overall, which translates to an increase of every element of the Hajj package by 10%
- Hajj transportation costs have increased by 10%
- Hajj quotas for this year has been reduced by 55% worldwide, which in turn increases cost due to less people but the same overheads
- Hotels, though will not have the same demand, has decided to increase their prices as well
- Hajj visa fees have not been determined yet
- Airfare cost will increase due to fuel cost and demand.
Food for thought: Can you think of any precious commodity or item, where the price actually comes down? Also, remember the simple rule in buying and selling; supply and demand. The demand is there and will always be there, so the supplier will always be in the ‘box seat’. Hajj is no different, unfortunately.
I conclude by reminding the reader that this article is not meant to justify the cost, but merely to give you an idea of the large amount of variables that cause the increase in prices year after year.
How much do you think it’s worth paying to be a Guest of Allah?