Said M Ladki Ph D Professor Lebanese American
Said M. Ladki, Ph. D. Professor Lebanese American University Adnan Kassar School of Business Beirut, Lebanon
Outline • The Four Players in the Hajj Business • Hajj Managerial Economics • Hajj Q. O. L Measures • Conclusion
Four Players in the Hajj Business • The Hajjis • Business Supplier • Host Government • Host Community
Source: TIA
The Five A’s of Hajj • Access • Accommodation • Attractions • Activities • Amenities
Classification of Hajj Travelers Familiarity Novelty Institutionalized travelers The organized mass The individual mass Non-institutionalized travelers The explorer The drifter Source: Cohen, 1972
Movement of People • World Tourism Organization (UNWTO) • International Air Transport Association (IATA) • International Civil Aviation Organization (ICAO) • Ministry of Transportation Republic of Indonesia (MTRI)
Hajj Data 2018 • 2. 5 million Hajj • Total number 98, 814 organized group • Indonesia 1790 organized group • 94% of all arrival by air • 32, 978 vehicles Source: Stats. gov. sa
Hajj Economic Spending Economy Mid-price, Upper Price, Luxury • Mecca Chamber of Commerce states that pilgrims spend between $5, 000 or $6, 500 to come to Hajj. • O’Connor 2017, One of the most expensive packages offered by Aleman Groups is a $11, 500 person two-week deal. • Costs $20, 419 • VIP package costs $68, 073. Source: Stats. gov. sa & Newsweek, 2017
Hajj Economic Spending 29% Source: OECD Tourism Statistics (Database).
Hajj Economic Projections • The Council of Saudi Chambers estimated that from 2018 to 2022 pilgrimages will generate $150 bn in income and create up to 100, 000 jobs. Source: Oxford Business Group, 2020
Hajj Direct Economic Variables • Disposable Income • Country Cost of Living • Cost of Transportation • Cost of Living at the Destination • Private Consumption • Exchange Rate • GNP Per Capita • Prices • Physical Distance • Promotional Expenditure
Indirect Economic Variables • Economic growth and stability • Economic Impact • Measuring and Modeling Demand • Tourism Supply • Technology • Degree of Urbanization
Host country perception of Hajj • International Hajj are perceived as invisible EXPORT. • Local Hajj are perceived invisible IMPORT.
Barriers to Hajj • Cost • Entry Barriers • Time • Health • Family Stage • Fear and Safety
Q. O. L • The Process (one step shop) • Travel • Living Conditions Air and Water Quality, Accident and Crime Rate • Health • Safety and Security • Leisure Activity • Overall Experience
Hajj Operators Level of Inspection • Quality Control • Quality Assurance • T. Q. M approach
Thank you!
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