TOURISM players involved with umrah (minor pilgrimage) travels are expected to lose some RM100 million after the Saudi Arabia government imposed a temporary sanction following the Covid-19 outbreak, said Umrah and Hajj Tourism Agency Association (Papuh) president Razali Mohd Sham.

He said the loss affects 200 to 300 travel agencies with about 20,000 pilgrims having to cancel their trip this month.

“The agencies are feeling the loss. If one agent has 100 pilgrims about to go to the Holy Land, they’d have lost RM500,000.

“For this month, about 20,000 pilgrims are going to perform the umrah, coinciding with school holidays, with a minimum cost of RM5,000 for each person.

“In total, it is estimated the operators stand to lose RM100 million,” he was quoted as saying to the Malay-language daily Berita Harian today.  

The loss is no longer a speculation as the Saudi embassy in Kuala Lumpur had announced that the suspension is expected to last until April 15.

Razali said small-time umrah entrepreneurs are also at risk of closing down.

“I expect many small companies to close, imagine if the losses reach RM1 million, how are they able to continue their business?”

He also does not expect the companies to receive any government assistance.

“Papuh believes it is not possible for the government to provide any assistance as the umrah service involves overseas tourism.”

The Saudi government suspended visas for pilgrims visiting Mecca, as the coronavirus spreads across the Middle East.

The government is “suspending entry to the kingdom for the purpose of umrah and visiting the Prophet’s mosque temporarily”, the ministry said in a statement, referring to the Islamic pilgrimage to Mecca that can be undertaken at any time of the year.

It has also suspended visas for tourists visiting from countries where the new virus is a “danger”.

Even as the number of fresh cases declines at the epicentre of the disease in China, there has been a sudden increase in parts of Asia, Europe and the Middle East.

Iran has emerged as a major hot spot in the region, where 15 people have succumbed to the disease.

Kuwait and Bahrain have also announced additional cases this week. – March 7, 2020.