Key Takeaways
- Aviation fuel costs, higher Saudi service fees, and currency weakness are named as the main drivers, all of which affect pilgrims from many countries, not one
- Past Saudi tax rises in 2018 and 2020 pushed Hajj costs up across a wide range of countries, and the same pattern is expected to repeat for 2027
Hajj costs are expected to rise again for the 2027 season, and officials say the cause sits inside Saudi Arabia itself rather than with any single country’s policy.
Indonesia’s House of Representatives Commission VIII, which oversees religious affairs, raised the issue during the National Working Meeting on the 2026 Hajj Evaluation, held in Jakarta on July 4.
Why the Increase Is Not Country-Specific
Commission VIII Chair Marwan Dasopang said the increase comes from rising prices and taxes in Saudi Arabia, calling it something no single country can control.
“The increase in prices and taxes in Saudi Arabia cannot be avoided, so the cost of the Hajj is likely to rise,” he said, in remarks carried on the Ministry of Religious Affairs’ YouTube channel.
Indonesia’s Ministry of Hajj and Umrah has named four factors behind the expected rise: higher prices inside Saudi Arabia, rising aviation fuel costs, increased service fees charged by the Saudi government, and currency weakness against the US dollar.
None of these factors are unique to one country. Aviation fuel prices affect every airline flying Hajj charters and scheduled flights, and Saudi service fees apply to pilgrims regardless of where they travel from.
A Pattern That Has Repeated Before
This would not be the first time a Saudi price or tax change has pushed Hajj costs higher across countries.
In 2018, Saudi Arabia introduced a 5 percent tax on goods and services covering Hajj and Umrah. Indonesia responded by raising its own Hajj cost that year to cover part of the increase.
A larger shift came in 2020, when Saudi Arabia raised its value-added tax from 5 percent to 15 percent.
Hajj costs rose across most Arab countries in the years that followed, driven by that tax change together with global inflation and high flight prices.
The increase was not confined to one country then, and officials expect the same to hold true for 2027.
Currency Weakness Will Hit Some Countries Harder
The same Saudi price rise will not land equally everywhere.
Countries whose currencies have weakened against the US dollar and Saudi riyal are likely to see a sharper increase in local-currency terms, even though the underlying Saudi cost rise is shared by all.
Indonesia’s rupiah is one example of a currency under this kind of pressure.
Governments Differ in How Much They Absorb
Not every country passes the full increase on to pilgrims. Some governments subsidize part of the Hajj cost through national funds. Indonesia does this through its Hajj Fund Management Agency, BPKH, which reduces what individual pilgrims pay out of pocket.
Other countries pass the full cost increase directly to pilgrims, meaning the impact of the same Saudi price rise can look very different depending on where a pilgrim is travelling from.
What Is Being Done to Reduce the Impact
Indonesia’s Commission VIII met with the Ministry of Hajj and Umrah on July 7 to discuss the 2027 Hajj cost.
Marwan said the increase could still be kept smaller if the ministry succeeds in getting Saudi authorities to lower some cost components. One proposal under discussion is using aircraft that return empty after dropping off pilgrims to carry tourists instead, which would help lower flight costs.
Marwan also said Saudi authorities need to reconsider how much a single tax rise multiplies across the total cost of a pilgrim’s trip before it reaches the pilgrim.
