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Eye of Riyadh
Tourism & Hospitality | Wednesday 22 July, 2015 3:49 am |
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Prices of resorts, chalets in Jeddah skyrocket

Resorts and chalets in Jeddah are packed to capacity and doing a roaring business this Eid holiday, with the rates skyrocketing.
A survey by a local publication showed that the increase in prices in the tourism and hospitality sector during Eid Al-Fitr holiday ranged from 50 to 100 percent, in comparison to the period just before the season. 
Members of the tourism committee at the Jeddah Chamber of Commerce and Industry (JCCI) ascribe the phenomenon to Eid holidays coinciding with the summer vacation.
Businessmen in the hospitality sector said that the rise in prices is not only due to high demand, but also because of privileged services offered to visitors by the resorts. 
Hussein Al-Amoudi, an investor in the tourism sector, said Jeddah received a large numbers of tourists this season because of the bloody conflicts in some well-known tourism cities. 
“The end of Umrah season by the end of Ramadan month and the proximity of Jeddah to Makkah contributed to the influx of pilgrims and visitors to the city,” he added. 
Hamad Al-Shahrani, a member of the JCCI tourism committee, said: “The increase in the rates at resorts is not merely due to the demand and supply factor, it is seasonal as is the case during Eid and special occasions.” 
He said the owners of chalets have incurred financial liabilities which they must meet and fulfill, including rents, maintenance costs, wages for their workers and other bills. “This is why they are inclined to raise the prices during peak seasons... their only chance to function and get revenues to compensate the stagnant and sluggish period.” 
Workers in some resorts and chalets in Jeddah said the high occupancy rate is due to the services and marine activities provided at these facilities for the pleasure of the whole family. “Some rent the place on a daily basis because they cannot afford to pay for more than a day or two,” they said. 
According to the workers, low prices during the lean season propel the investors to raise the prices during the holidays and vacation season to compensate for the loses. 
A source at the Saudi Commission for Tourism and Antiquities said the tourism body allocated field teams to monitor hotels and furnished residential units to ensure their compliance with the norms.

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