THE ECONOMIC IMPACT AND ADAPTIVE STRATEGIES OF COVID-19 ON UMRAH TOURISM IN THE KINGDOM OF SAUDI ARABIA

Abstract

Religious tourism, particularly Umrah in the Kingdom of Saudi Arabia (KSA), was among the most affected sectors during the COVID-19 pandemic. The government implemented various preventive measures, but the recovery process took longer than anticipated. This study examines the economic effects of the pandemic on the Umrah sector and the strategic responses by the Saudi government and business owners in Makkah. Although essential to KSA’s non-oil economy, the crisis resilience and adaptability of the Umrah sector during unprecedented disruptions like the pandemic have received insufficient attention. This study therefore seeks to address this critical need by investigating the economic impacts of COVID-19 on the Umrah sector and evaluating the strategic responses implemented. Such an analysis is essential for advancing crisis management frameworks and ensuring the sustainability of religious tourism under similar conditions. A qualitative research approach employing purposive sampling was used, with data collected through interviews with 13 government officials and three business owners, as well as three focus group discussions. These methods provided a comprehensive understanding of the economic impacts and adaptive strategies utilized. The study was guided by established frameworks, which include Swenson's economic impact framework, Wenzel's crisis response strategies, and Deb and Nafi's recovery model, that offered a structured analysis of the sector’s resilience and adaptation. The involvement of the Ministry of Hajj and Umrah and the Ministry of Tourism ensured that the study captured authentic insights into policy-making, sector management, and recovery strategies during the crisis. The interviews, averaging 45 minutes each, offered detailed insights into the participants' experiences and perspectives. The findings revealed that the pandemic resulted in the cessation of Umrah activities, leading to revenue losses, as millions of pilgrims contribute substantially to KSA's non-oil economy annually. The lockdown also caused widespread job losses and income reductions, affecting private and public finances. In response, the KSA implemented various strategies, including immediate financial aid and a shift towards digital platforms, underscoring the critical role of technology in managing crises within the religious tourism sector. This study provides actionable insights for policymakers in KSA, highlighting the importance of integrating digital transformation and adaptive strategies into national policies to ensure resilience in the tourism sector. Furthermore, the findings emphasise the need for dynamic economic strategies that support rapid adaptation and resilience in the face of such challenges. By applying theoretical frameworks such as Chaos Theory to a unique context, this study provides valuable contributions to the literature on crisis management and economic resilience in religious tourism. It offers novel insights into the interconnected economic, social, and operational challenges posed by the pandemic and provides actionable recommendations to policymakers and stakeholders for building a more resilient and adaptive Umrah sector in the future. Finally, future research should explore cross-regional comparisons, delve deeper into the integration of digital solutions, and employ longitudinal and interdisciplinary approaches to uncover sustained effects and broader implications for religious tourism's resilience.