Saudi Gazette report JEDDAH — Experts and investors in the housing sector in Makkah said the number of permanent and seasonal furnished flats rented to pilgrims during the Haj season is dwindling because most of the pilgrims prefer to stay in hotels. Khaleel Abdulrahman Bahader, Deputy Chairman of the Tourism and Hotels Committee in Makkah, said the number of the licensed furnished flats buildings in Makkah is 73, out of which only 12 are classified by the Saudi Commission for Tourism and Antiquities (SCTA). He said the number of the licensed furnished flats in Makkah represents only 5 percent of the total housing facilities offered to pilgrims, compared to as much as 90 percent in the past. Most of the furnished flats are located in the Azizyia and Al-Mansoura districts and other areas relatively far from the central Haram area. On the other hand, the number of the hotels has increased tremendously in the past two decades, reaching 700, of which 538 are licensed by the SCTA. Of those licensed by the SCTA, 230 have been classified as four or five star hotels. Bahader said the majority of classified hotels are operated by international hotel companies that entered the Saudi market over the past two decades. He said the Makkah Construction and Development Company assigned the Hilton Hotels to operate its Makkah hotel 20 years ago. Bahader, who has been working in the pilgrims housing sector in Makkah for the last 30 years, said there were many factors that contributed to the changes in the makeup of accommodation for pilgrims in Makkah, including successive expansions of the Grand Mosque that led to the expropriation of old buildings that used to include rooms and furnished flats for pilgrims. He said the development witnessed in the housing sector in Makkah was necessitated by the growth in the number of Haj and Umrah pilgrims. He said all areas in Makkah have witnessed substantial development in terms of pilgrims' housing, especially the central area, which has turned into a construction site for the past 30 years. He said in the past pilgrims used to be accommodated in buildings rented out for the Haj period or in houses owned by individuals who used to move out during the season. He said in the past only wealthy pilgrims would stay in hotels. Bahader said there were two buildings near the Grand Mosque in the Al-Ghazza neighborhood owned by Al-Juffali and Ibrahim Salem. The tenants used to vacate them during Haj so pilgrims could move in. He said the increasing involvement of international hotel companies has resulted in the emergence of high standard housing facilities, not only in terms of design but also services. This has enabled pilgrims to have greater choice over their accommodation based on their budgets. He said this encouraged owners of furnished flats to demolish them and build in their places modern hotels, especially those located near the mosque.