Weak Rupiah, Higher Airfares Push Up Umrah Travel Costs in Indonesia
Lamongan, East Java. The sharp depreciation of the rupiah against the US dollar and rising aviation costs are putting growing pressure on Indonesia’s umrah travel industry, forcing operators to raise package prices as operating expenses climb.
Rizky Amelia of the Indonesian Hajj and Umrah Organizers Association said the weakening rupiah has become the primary driver of higher pilgrimage costs for Indonesians traveling to Saudi Arabia.
According to Amelia, the decline in the exchange rate from around Rp 16,800 per dollar to approximately Rp 18,100 has significantly increased expenses for travel operators and pilgrims alike.
“From the increase in the dollar exchange rate alone, costs have risen by as much as Rp 3 million ($166) per pilgrim,” Amelia said in Lamongan, East Java, without specifying the total cost of a typical package.
The pressure has intensified as airlines raise fares in response to higher aviation fuel costs, she added.
Flights departing from Surabaya to Jeddah or Medina are now more expensive than those originating from Jakarta, further increasing costs for pilgrims from eastern Indonesia.
According to Amelia, airfare increases vary by carrier, with fares rising by around Rp 5 million for Lion Air, Rp 7 million for Garuda Indonesia, and as much as Rp 8 million for Saudia.
“As a result, price adjustments have become unavoidable,” she said.
Despite the higher costs, demand for umrah travel remains relatively strong. Amelia said registrations for July departures have fallen by only about 10%, and no pilgrims have canceled their trips because of the price increases.
“Thankfully, registrations for July departures remain stable and no one has withdrawn. Pilgrims understand the current global economic situation,” she said.
According to Amelia, most pilgrims prefer to absorb the additional costs rather than accept lower service standards or reduced travel amenities.
“It all comes down to quality. Pilgrims still want high-quality services and facilities, and they are willing to accept these adjustments because they consider them reasonable and affordable,” she said.
More than one million Indonesians perform umrah each year, making Indonesia one of the world’s largest sources of pilgrims traveling to the holy cities of Mecca and Medina.
Before the rupiah’s sharp depreciation over the past two months, umrah packages typically ranged from Rp 23 million to Rp 50 million ($1,274 to $2,771), depending on the services offered and the city of departure.
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