By Nurqalby Mohd Reda
KUALA LUMPUR: The cost of performing the haj pilgrimage next year is likely to go up as in the preceding year, an inevitable situation affecting not only Muslims in Malaysia but also all over the world.
The increase, estimated to be as high as 11 percent as announced by Lembaga Tabung Haji (TH), is unavoidable due to the post-Covid-19 global economic conditions as well as the 15 percent increase in the Value Added Tax implemented by Saudi Arabia.
This means Muassasah or first-time pilgrims will need to pay RM34,000 per person to perform the haj in the upcoming haj season compared to RM30,850 this year and RM28,632 in the previous year.
Despite the hike, the cost of fulfilling the fifth pillar of Islam for Malaysian pilgrims is, in reality, still considered among the lowest in this region due to the haj financial aid or subsidy offered by TH albeit in a targeted manner.
Neighbouring countries such as Thailand and Indonesia, meanwhile, are not exempt from feeling the impact of the increased cost of performing the haj as it could influence the number of pilgrims registering for the upcoming haj season.
Accept hike in haj cost
Acknowledging this, Thai haj and umrah pilgrimage operator Suwandee Yusohhem believed the higher costs may lead to the haj quota allocated to Thai pilgrims not being met.
He said so far, 4,000 people have registered for the 2024 haj season, with only two more months left to fulfil the nation’s quota of 13,000.
“Most probably many are not registering due to the increase in cost and I think about 1,000 more pilgrims will register before the end of the (registration) period.
“If not fulfilled by January, the remaining portion of the Thai quota will be returned to Saudi Arabia,” he said.
According to Suwandee, who is managing director of Chana Travel and Tour, for this year’s haj season, Thai agencies have set the cost of the pilgrimage package at around 275,000 baht or RM36,000 per person, compared to the previous season’s 235,309 baht or RM31,000.
“Apart from the tax imposed by the Saudi Arabian government, other reasons behind the increase in haj charges include the rise in accommodation, food and beverage, and flight costs as well as the depreciation in the value of the currencies of certain countries including Thailand’s,” he added.
One of the factors compelling Thai Muslims to refrain from registering for the haj is the absence of an institution like TH in their country, hence they need to have their own savings to undertake the pilgrimage.
Suwandee said that based on the outcome of a recent meeting with representatives of the Saudi Arabian government, pilgrims need to fully accept the cost increase by turning to the concept of financial capability (istito’ah) as required in the performance of this religious duty.
“Haj costs are rising and all pilgrims must accept it, (and) because of that in our meeting, I also emphasised the concept of affordability, particularly from a financial perspective.
“For them (Saudi Arabia), the haj quota should prioritise those who are obligated to perform the haj based on their financial capability. For those who cannot afford it, there’s no need to perform this pilgrimage,” said Suwandee, who also praised Malaysia for maintaining the haj financial aid to help its Muslim community to perform the haj.
Previously, TH had identified five factors that influence haj pilgrimage costs, namely inflation, currency exchange rates, taxes, improvement in service quality, and development in Makkah as well as Madinah.
TH chairman Tan Sri Azman Mokhtar was quoted as saying that the financial institution would continue to make every effort to provide targeted haj financial assistance to the 1445H/2024 haj season pilgrims, particularly those from the B40 and M40 groups.
For this year’s haj season, TH spent a total of RM265 million to assist needy and eligible persons to perform the pilgrimage concerned.
Indonesia cuts haj subsidy
Besides Malaysia, Indonesia also provides haj financial assistance, where its citizens only need to pay a portion of the cost of performing the pilgrimage while the rest is covered by the government.
Indonesia’s Coordinating Minister for Human Development and Culture Muhadjir Effendy was previously quoted as saying the increase in haj costs is unavoidable due to the current economic situation and he suggested the cost increase be implemented in stages so as not to burden pilgrims.
Subhan Cholid, director of Foreign Haj Services at Indonesia’s Ministry of Religious Affairs, said the government set the haj pilgrimage fee at 49.812 million rupiah (RM14,932.89) per person for this year’s haj season.
“As for the haj subsidy, Indonesia allocated a 55.3 percent subsidy this year, compared to 59.21 percent last year. This was done to safeguard the sustainability of the haj finances,” he said.
Indonesia was reported to have hiked the haj fees by over 70 percent this year as it was also affected by the prevailing challenges, thus demonstrating the price increase is due to factors beyond their control.
TH covers cost hike
Acknowledging that it is not easy to accept the reality of the increase in haj costs, Universiti Sains Islam Malaysia Faculty of Economics and Muamalat senior lecturer Muhammad Iqmal Hisham Kamaruddin said it is however, not an extraordinary or new phenomenon.
He said haj costs have been rising yearly but not many were aware of it as it was “hidden behind” the haj financial aid that was given to all pilgrims until this year when TH embarked on implementing targeted financial assistance.
“The increase in the cost of performing the haj actually occurs every year but not many were aware because TH used to provide the haj financial assistance to all pilgrims to the extent that TH had to bear more than half of the total cost.
“Pilgrims began to notice the increase in cost after TH restructured the haj financial assistance based on income categories and they (pilgrims) started questioning the price rise even though it was not a new thing.
“However, the increase in haj fees conforms with the quality of services and facilities provided to pilgrims. As such, they should be aware of the current cost of performing the pilgrimage,” he said.
He, however, opined that TH should carefully select potential pilgrims based on their ability to cover the cost of performing the haj.
This is in line with the Maqasid al-Shariah approach (objective of every Islamic law) which emphasises the obligation to perform the haj for those who are capable including financially.
“Emphasis should be placed on those who have the capability to reduce the waiting period to perform the haj. The performance of the haj should be offered to those who truly meet the istito’ah (capability) criteria.
“If the haj financial assistance initiative had not been reformed, it would not only burden TH but also lead to misconceptions among the public regarding the actual cost of performing the haj,” he said.
Retain targeted subsidy
Meanwhile, Universiti Pendidikan Sultan Idris Faculty of Management and Economics lecturer Dr Ahmad Zakirullah Mohamed Shaarani said the establishment of targeted financial assistance for haj pilgrims is justified because it is perceived as a means to guarantee the sustainability of TH’s operations.
He said TH is not be able to provide haj financial assistance to all its depositors who aspire to perform the haj, given the yearly increase in haj costs.
“The haj financial assistance should be limited to those who are eligible, and we see this step as the best way to manage TH’s finances.
“Perhaps the provision of haj financial assistance cannot prevent the increase in haj costs but at least it offers an opportunity for depositors who don’t have the financial means to also share the experience of performing the haj,” he said.
He added that prospective pilgrims who opt for private haj packages are not significantly affected by the price hike as they have the financial resources to cover the full cost of the pilgrimage.
“Although the cost may be higher for those choosing private haj packages, the pilgrims will be provided with the best facilities by the operators,” he said. – BERNAMA
