High Cost of Haj: Bangladeshis Opt for Umrah as 58% Quota lying vacant

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• Against 127,198 quotas, only 53,115 registered for Hajj 2024
• 58% of quota still vacant
• Maximum cost of Tk1.5 lakh for performing Umrah

The cost of the Hajj package has recently escalated, prompting a growing inclination among Muslims in Bangladesh to opt for Umrah over participating in Hajj.

The president of Hajj Agencies Association of Bangladesh (HAAB) said that the cost of Hajj is much higher than before. On the contrary, the cost of Umrah is very low. One can perform Umrah within a maximum of Tk1.5 lakh.

On January 8, Bangladesh formalized a bilateral Hajj agreement with the Saudi Arabian government in Jeddah.

As per the terms of the agreement, 127,198 Bangladeshis are granted the opportunity to undertake Hajj this year, mirroring the quota from the previous year.

However, despite extending the registration period to eight phases, the Hajj quota was not met.

Even with an additional two phases, only half of the Hajj quota was fulfilled, and the registration concluded last Thursday.
The Hajj is scheduled for June 16 this year, subject to moon sighting.

Quota lying vacant
Motiul Islam, additional secretary to the Ministry of Religious Affairs, announced on Friday that more than 53,000 individuals have registered for Hajj this year.

“We will not extend the registration period this year. Despite a reduction of Tk1 lakh in the Hajj cost compared to last year, the response has not matched our expectations,” said the additional secretary.

Since the commencement of registration on November 15, a total of 53,115 Hajj pilgrims have registered under both government and private management until Thursday.

With 74,083 quotas still vacant, the ministry has concluded Hajj registration, leaving 58% of the total quota unfilled.

Out of the 53,115 pilgrims, 3,802 have registered under government management, while 49,313 have registered under private management.

This year, two Hajj packages have been established under government management, with the lowest package priced at Tk5,78,840 and the special package at Tk9,36,320. Meanwhile, the two packages under private management are priced at Tk5,89,800 and Tk8,28,818, respectively.

Compared to last year, the cost of the lowest package has seen a reduction of Tk1,04,160. However, despite this reduction, the response has been notably lower than in the previous year, echoing a trend observed in 2023 when 3,500 registrations remained vacant against the quota.

President of the Hajj Agencies Association of Bangladesh (HAAB), S Shahadat Hossain, highlighted that while the cost of Hajj has decreased by Tk1 lakh compared to the previous year, it remains significantly higher than pre-Covid-19 levels.

Conversely, the cost of Umrah is notably lower, with individuals able to perform Umrah for a maximum of Tk1.5 lakh. This has led to a surge in interest among many people opting for Umrah to save costs, he explained.

Saudi Arabia’s Hajj policy behind surging cost
In addition, Saudi Arabia has implemented significant alterations in its Hajj policy, leading to an escalation in costs.

The apparent shift in their approach suggests a future inclination towards directly managing Hajj pilgrims from Muslim countries, consolidating the entire operation under their purview.

Notably, they are now facilitating direct online registration for Hajj passengers from non-Muslim countries, while also transitioning the Umrah process to an online platform.

It is expected that the entire Hajj process may eventually be brought online.

The HAAB president said: “Even if there is a quota under the online process, there will be no need for a Hajj agency.”
Bangladeshi Hajj agencies incurring financial loss
In Bangladesh, there are currently 1,250 Hajj agencies, and travel agents also play a crucial role in catering to pilgrims.

Despite a decline in the number of pilgrims, these agencies and travel agents are grappling with unchanged overhead costs, including management expenses, while facing a substantial drop in ticket sales for the three scheduled airlines.

Consequently, both Hajj and travel agencies are encountering financial losses, leading some to discontinue their Hajj-centric business operations.

Abdus Salam Aref, the Secretary-General of the Association of Travel Agents of Bangladesh (ATAB), said that the cost of Hajj has surged by 80% compared to the 2018-19 period. This increase is attributed, in part, to the rise in the dollar price. Notably, the expenses for six individuals to perform Umrah equal the cost incurred by one person undertaking Hajj, contributing to a growing interest in Umrah.

Presently, approximately 500,000 Muslims travel to Saudi Arabia annually to perform Umrah. Aref expressed concern over declining interest in Hajj, saying: “Travel agents are also suffering due to a decrease in interest in performing Hajj, with ticket sales dropping by less than half.”

Motiul Islam pointed out that the rising house rent in Saudi Arabia, coupled with the addition of a 17% Value Added Tax (VAT), has added to the overall cost. The demolition of numerous houses has led to a significant increase in house rent.

Despite these challenges, Motiul Islam mentioned that they have managed to reduce costs by Tk1 lakh compared to the previous year.

However, further reductions are not deemed feasible. He emphasized that Hajj is a personal religious matter, saying: “Still, we are encouraged in many ways. But if they do not show interest, there is nothing to do. However, the number of Umrah pilgrims is increasing due to the lower cost.”

Source: Dhakar tribune