>>212021670"The money spent on Haj goes to
Private businesses in Mecca set up to provide goods and services to pilgrims
Airlines and other transportation companies (buses, ships, taxis, etc.)
Travel agents who set up the travel plans for pilgrims
Haj represents the primary source of income for many Meccans, whether they are hotel owners, food services and restaurants, guides, etc. The presence of the Kaaba, though, assures a large number of pilgrims performing the non-obligatory Umrah pilgrimage during periods other than Haj, as well as those just stopping by to pray.
The Saudi government earns no money from Haj. Contrarily, it expends hundreds of millions of dollars on it to ensure safety, health, and a reasonably pleasant experience for pilgrims.
The fact that so much money can be made in the private sector during Haj, though, means that there is strong competition within Saudi Arabia to earn even more money. This drives up the cost of real estate, making new construction in Mecca very expensive. Those costs are passed on indirectly to pilgrims who make use of that real estate, whether in the form of hotels or shops that provide goods and services. The Saudi government, though, tries to make sure that there are subsidized facilities for the poorer pilgrims."
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