Total Umrah numbers remained almost unchanged in the first quarter of 2026. The international market did not.
For Southeast Asian operators, the challenge is not simply finding new pilgrims. It is rebuilding confidence among travelers who have become more cautious after years of fraud cases, disruptions and uncertainty.
Saudi Arabia recorded 15,233,767 Umrah performers in the first quarter of 2026, almost identical to the same period a year earlier. But behind the stable headline was a major shift: domestic participation increased while arrivals from abroad declined. International Umrah performers fell to 5.77 million, compared with about 6.52 million in Q1 2025, a decline of roughly 12 percent.
For countries such as Indonesia and Malaysia — two of Southeast Asia’s largest Muslim travel markets — the numbers highlight a deeper issue. Religious demand remains strong. The harder task is ensuring that pilgrims believe the journey they purchase will be delivered exactly as promised.
The First Travel Fraud in Indonesia
Indonesia saw one of the most damaging Umrah scandals in recent history in 2017.
Rita Mala Rachmad recommended a travel agency to her in-laws. Three members of her family later became victims of the company’s failure. The agency was PT First Anugerah Karya Wisata, better known as First Travel, which had attracted customers by offering heavily discounted Umrah packages.
The company marketed packages below normal market prices, eventually leaving thousands of customers unable to complete their pilgrimage plans.
Authorities estimated that tens of thousands of people had paid First Travel for Umrah packages, while only a portion had departed. Reported losses reached approximately Rp848 billion.
The case became a turning point for Indonesia’s religious travel industry. It showed that a government license alone did not automatically protect consumers from poor management, financial problems or fraud.
Regulation after the crisis
Almost a decade later, Indonesian authorities continue tightening oversight.
The Ministry of Religious Affairs, which oversees Umrah travel licensing through the PPIU (Penyelenggara Perjalanan Ibadah Umrah) system, has repeatedly warned consumers to verify that agencies hold valid permits before paying for packages.
In 2026, Indonesian authorities announced plans to review thousands of Umrah travel agencies before approving future permits. The move reflects a broader effort to ensure that licensed operators maintain proper standards rather than simply holding registration documents.
The lesson from First Travel was clear: regulation is necessary, but verification and enforcement matter just as much.
The numbers hide a bigger shift
Saudi Arabia’s latest Umrah figures demonstrate why total numbers alone can be misleading.
The Kingdom recorded more than 15.2 million Umrah performers in Q1 2026. Domestic performers accounted for approximately 9.46 million, while international performers represented 5.77 million.
Compared with Q1 2025:
- Total performers increased slightly from 15.22 million to 15.23 million.
- Domestic performers increased by around 765,000.
- International performers decreased by approximately 754,000.
The headline number therefore hides a change in the structure of demand. Saudi Arabia maintained overall Umrah activity largely because domestic participation compensated for weaker international arrivals.
For Southeast Asian operators, that distinction matters. A decline in foreign arrivals does not necessarily mean Muslims have lost interest in Umrah. It may indicate that travel conditions, confidence levels and practical barriers are affecting their decision to do so.
A difficult quarter for international travel
The decline in overseas arrivals was particularly visible during the quarter.
January recorded the highest number of international Umrah performers, with about 2.24 million visitors. March recorded the lowest, at approximately 1.39 million.
Regional instability and aviation disruptions may have contributed to some travellers postponing journeys. However, the available data does not prove that geopolitical tensions alone caused the decline.
The broader issue for operators is reliability.
A pilgrim does not only purchase transportation, accommodation and religious services. They purchase confidence that a once-in-a-lifetime journey will happen according to the promises made at the time of booking.
That confidence has become the industry’s most valuable asset.
Trust Becomes the Real Product
The First Travel scandal changed how many Indonesians viewed Umrah travel operators. The damage was not only financial. It affected the basic relationship between pilgrims and the companies responsible for arranging their religious journey.
In the First Travel case, authorities estimated that 72,682 people had registered and paid for Umrah packages between December 2016 and May 2017. Only around 14,000 pilgrims were sent to Saudi Arabia, leaving approximately 58,682 people unable to depart. Police estimated losses at around Rp848.7 billion.
The company had attracted customers through unusually low prices. Its promotional package was reported at around Rp14.3 million per person, far below conventional market prices at the time. The case became a warning about the risks of choosing religious travel packages based primarily on price.
For regulators, the lesson was equally important. A license could confirm that an operator was registered, but it could not replace proper supervision, and financial checks or consumer awareness.
Malaysia faces a similar challenge
Indonesia is not alone in dealing with Umrah-related complaints.
Malaysia has also experienced cases involving pilgrims who paid for packages but later faced cancellations, delays or losses.
Between 2024 and May 2025, Malaysian authorities recorded 204 complaints related to Umrah fraud, involving losses of approximately RM3.6 million. One prominent case in January 2025 involved 379 pilgrims and alleged losses of about RM2.1 million.
The cases reinforced a broader regional problem: pilgrims often make payments months before departure, giving operators access to large amounts of customer money before the service is delivered.
That creates a trust gap.
For ordinary travellers, an Umrah package is not simply another holiday purchase. It is often a major financial commitment tied to a deeply personal religious goal. When an operator fails, the consequences are emotional as well as economic.
Malaysia strengthens financial safeguards
Malaysia responded with additional protections.
After 36 pilgrims were stranded in Madinah in early 2026, the Ministry of Tourism, Arts and Culture (MOTAC) announced that bank guarantees would become compulsory for Umrah travel agencies. The aim was to strengthen protection for pilgrims’ payments and improve confidence in licensed operators.
The move reflects a shift in regulatory thinking. Licensing alone is no longer considered sufficient. Authorities are increasingly looking at financial safeguards that reduce the risk of pilgrims losing money before departure.
Understanding who regulates what
One recurring source of confusion in Malaysia is the difference between Hajj and Umrah regulation.
Tabung Haji is responsible for Malaysia’s Hajj administration, including pilgrim management and Hajj-related services. It does not function as the licensing authority for commercial Umrah travel agencies.
For Umrah operators, travellers should check with MOTAC, which regulates tourism companies offering Umrah packages.
This distinction matters because consumers sometimes assume that approval from one religious institution automatically covers all pilgrimage services.
It does not.
A traveller purchasing an Umrah package should confirm:
- whether the agency holds the appropriate MOTAC approval;
- whether the package provider is financially stable;
- what services are included;
- what happens if flights, visas or accommodation arrangements change.
The future of the industry will depend less on selling packages and more on proving reliability.
From national regulation to regional trust
The challenge for Southeast Asia is that pilgrimage travel increasingly crosses borders.
A Malaysian pilgrim may book through a regional operator. An Indonesian company may work with Saudi hotels, airlines and service providers. A package marketed online can involve multiple jurisdictions.
That makes consumer protection more complicated.
A licence issued in one country does not automatically provide protection in another. Greater cooperation between regulators could help create shared standards for verification, complaints handling and operator accountability.
The same issue appears in the wider halal economy.
Building a regional halal framework
Malaysia has proposed creating an ASEAN Halal Council to strengthen cooperation among member states on halal standards and trade.
The proposal aims to improve coordination among ASEAN countries, although its establishment depends on agreement among member states and the ASEAN process.
A regional framework could eventually help businesses operating across borders by reducing duplication and improving recognition of halal standards.
But pilgrimage travel faces an additional challenge: trust is not created only through certification.
A halal label may confirm compliance with religious requirements. It does not by itself answer the questions that matter most to travellers:
- Will the operator deliver what was promised?
- Are the flights confirmed?
- Are hotels secured?
- Are payments protected?
- Can someone help if something goes wrong?
For Umrah operators, operational trust may become as important as religious positioning.
Beyond the Halal Label: What Future Pilgrims Actually Value
For many years, halal positioning has been the central message in Muslim tourism marketing.
That approach remains important. Religious compliance, halal food availability, prayer facilities and culturally appropriate services are fundamental expectations for Muslim travellers.
But newer research suggests that trust, experience and confidence in a destination may be equally important — and in some cases more influential.
This distinction matters for Umrah operators. A pilgrimage package is not judged only by whether it satisfies religious requirements. It is also judged by whether the entire journey feels safe, reliable and professionally managed.
Trust may matter more than awareness alone
A 2025 study of Indonesian Gen Z travellers examined how halal awareness and destination trust influence travel intention. The research, based on 416 respondents planning trips in Java, found that destination trust had the strongest direct influence on intention to visit, exceeding the effect of halal awareness. Garuda
The finding does not mean halal considerations are becoming irrelevant. Rather, it suggests that Muslim travellers increasingly evaluate destinations through multiple factors:
- Can they trust the information provided?
- Are services consistent with expectations?
- Is the destination safe and convenient?
- Does the experience match the promises made before travel?
A second study from Sabah, Malaysia, examining Gen Z respondents, similarly found that destination-related trust factors played an important role in travel intention, although such studies remain limited in size and are not specific to Umrah. University of Dundee Discovery Portal
For pilgrimage operators, the implication is practical. The future competitive advantage may not come from repeating that a package is halal. It may come from demonstrating that every stage of the journey is dependable.
The next generation of pilgrims
Younger Muslim travellers are entering the market with different expectations.
They are more likely to research online, compare reviews, seek transparency and share their experiences publicly. A delayed flight, poor hotel arrangement or unclear communication can quickly become a reputation problem.
For operators, this creates both a challenge and an opportunity.
Traditional pilgrimage businesses were built around relationships, trust within communities and offline recommendations. Those remain valuable. But younger customers increasingly expect digital verification:
- clear itineraries;
- transparent pricing;
- online reviews;
- responsive customer support;
- easy access to documentation.
The companies that combine religious understanding with modern service standards are likely to be better positioned.
Women represent a growing opportunity
Women are another important segment for Umrah operators.
Saudi Arabia has significantly changed travel rules in recent years. In 2022, Saudi officials confirmed that women could perform Hajj and Umrah without a male guardian requirement, although religious scholars continue to hold different views on the issue. Arab News
Earlier reforms had already eased restrictions for some female pilgrims travelling in groups. Saudi Gazette
The policy change has expanded possibilities for women who previously faced practical barriers, including those whose family circumstances made travelling with a mahram difficult.
However, greater access does not automatically create a complete travel solution.
Women travelling independently or in women-only groups may have different expectations from traditional pilgrimage customers. Operators that understand those needs could develop specialised products around:
- women-focused guidance;
- female group leaders;
- enhanced communication before departure;
- safety support;
- accommodation planning;
- digital assistance during travel.
Safety and trust must accompany access
Greater accessibility also requires careful attention to security and consumer protection.
A legal study examining Nigerian female Hajj pilgrims found examples of people attempting to bypass restrictive requirements through inaccurate documentation involving male companions. Although the research was not about Malaysia or Umrah, it illustrates a broader challenge: when regulations are difficult to navigate, some travellers may become vulnerable to informal or fraudulent arrangements.
The lesson for operators is that removing barriers must be accompanied by better guidance.
Clear information helps travellers make legitimate choices.
Technology will shape the next phase
Digital tools are already changing pilgrimage management.
Saudi Arabia has expanded digital services through platforms such as Nusuk, allowing pilgrims to access services, information and booking options electronically. Saudi Press Agency
For Southeast Asian operators, technology can become more than a marketing tool. It can become a trust mechanism.
Potential applications include:
- verified operator profiles;
- digital contracts;
- payment protection systems;
- real-time travel updates;
- multilingual support;
- emergency communication channels.
In an industry where trust is fragile, transparency itself becomes a competitive advantage.
Planning around capacity and seasonality
Operational planning remains one of the most important challenges for Umrah businesses.
During Ramadan 2026, authorities managing the Two Holy Mosques advised pilgrims that certain daytime periods, including approximately 8 am to 3 pm, were generally less crowded for performing Umrah compared with peak periods.
For operators, the lesson is simple: scheduling is part of the service.
A package that ignores crowd patterns can create unnecessary stress for pilgrims. Better planning can improve both customer satisfaction and operational efficiency.
The same principle applies to accommodation.
Saudi Arabia’s hospitality sector has expanded rapidly, increasing available supply in many destinations. Reports in 2026 indicated that some hotel prices had declined as capacity increased.
For operators, this creates both opportunity and risk. Companies with flexible accommodation arrangements may benefit from changing market conditions, while those locked into expensive peak-season contracts may face pressure.
The most resilient businesses will be those that manage capacity intelligently rather than simply chasing volume.
How To Build a More Resilient Umrah Economy
The future of Southeast Asia’s Umrah industry will not be decided only by the number of pilgrims travelling to Saudi Arabia. It will depend on whether operators can create journeys that are more reliable, flexible and sustainable.
The industry is entering a period where traditional pilgrimage services are being combined with broader tourism experiences, digital tools and new forms of travel.
The question is no longer simply how to send more pilgrims.
It is how to design better journeys.
Umrah Plus: Expanding beyond the pilgrimage itself
One emerging model is Umrah Plus, which combines pilgrimage in Saudi Arabia with cultural, historical or educational tourism in another destination.
Uzbekistan and Malaysia have become early movers in this space.
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In January 2026, Uzbekistan promoted its Umrah Plus programme in Malaysia, highlighting packages that combine Umrah in Saudi Arabia with visits to historic Islamic centres including Tashkent, Samarkand and Bukhara. Tourism associations from Uzbekistan and Malaysia signed a memorandum of cooperation covering joint projects, knowledge exchange and pilgrimage tourism development. O‘zbekiston Respublikasi Hukumat portali
The concept reflects a broader change in Muslim travel. Pilgrims increasingly view religious journeys as part of a wider educational and cultural experience.
For Southeast Asian operators, this creates opportunities beyond the traditional Saudi-only package.
A traveller from Malaysia or Indonesia could potentially combine:
- Umrah in Makkah and Madinah;
- visits to Islamic heritage sites;
- cultural experiences;
- educational programmes;
- family travel extensions.
Such products could increase value without relying only on price competition.
However, the model requires careful planning.
Adding destinations also adds complexity:
- additional visas;
- more flights;
- more accommodation arrangements;
- more coordination between operators.
A poorly designed Umrah Plus package could create the same trust problems the industry is trying to solve.
The priority must remain reliability.
Diversifying routes and partnerships
The search for new pilgrimage models is also linked to transport.
Traditional Umrah journeys rely heavily on air travel. That makes operators vulnerable to airline disruptions, capacity shortages and geopolitical events.
Alternative routes are attracting attention.
Malaysia’s IslamiCruise project was designed as a new pilgrimage travel concept, combining a cruise journey with Umrah. The programme, developed with Saudi Arabia’s Aroya Cruises, planned a route from Port Klang to Jeddah with stops including Banda Aceh, Oman and the Maldives. Salaam Gateway
The inaugural January–February 2026 voyage was later rescheduled while organisers reviewed the route structure, package design and commercial viability. Salaam Gateway
The project illustrates both the opportunity and difficulty of innovation in pilgrimage travel.
A new product must offer more than novelty.
It must answer practical questions:
- Is the journey convenient?
- Is the pricing competitive?
- Can schedules match customer needs?
- Are pilgrims comfortable with a longer travel experience?
Innovation can expand the market, but only when it improves the customer experience.
Sustainability will become part of the conversation
Environmental issues are also beginning to enter pilgrimage discussions.
A 2026 study examining Hajj-related emissions estimated that pilgrimage activities contribute significant carbon emissions, with international aviation representing a major component. However, Hajj-specific findings should not automatically be applied to Umrah, which has different travel patterns and visitor volumes.
Research on sustainable pilgrimage tourism remains limited.
For Umrah operators, sustainability is likely to become a gradual rather than immediate competitive factor.
Possible areas include:
- efficient transport planning;
- reduced food waste;
- environmentally responsible accommodation;
- digital documentation instead of paper processes;
- carbon-conscious travel options.
Younger travellers, particularly those accustomed to evaluating brands through social and environmental values, may increasingly expect companies to address these issues.
The new definition of trust
The central lesson from the past decade is that trust cannot be built through marketing alone.
A company can promote itself as halal, experienced or affordable. But pilgrims judge operators by whether the complete journey works.
Trust is created through details:
- accurate information before departure;
- transparent contracts;
- realistic pricing;
- secure payments;
- confirmed accommodation;
- trained guides;
- rapid support when problems occur.
This is especially important in Southeast Asia, where millions of Muslims are potential Umrah customers but where previous scandals have made many families more cautious.
The companies that succeed will likely be those that treat trust as a core product.
What ASEAN operators need to do next
For the region’s Umrah industry, several priorities stand out.
- Improve verification
Consumers need easier ways to confirm:
- whether an operator is licensed;
- whether packages are genuine;
- whether payments are protected.
Regulators can help by improving public databases and cooperation between countries.
- Build stronger digital systems
Online platforms should not only sell packages. They should provide confidence.
Useful features include:
- verified company profiles;
- digital contracts;
- customer reviews;
- real-time updates;
- emergency communication.
- Design for new customer groups
Women travelling without family members, younger digital-first pilgrims and families seeking educational experiences represent growing segments.
Operators that understand these groups can develop more relevant products.
- Compete on reliability, not only price
The First Travel scandal demonstrated the danger of unsustainably cheap packages.
A low price may attract customers initially, but a failed journey damages the entire industry.
The future advantage will come from credibility.
The Next Phase of Southeast Asia’s Umrah Industry
Southeast Asia does not have a demand problem.
Indonesia, Malaysia and neighbouring countries remain among the world’s most important Muslim travel markets.
The challenge is converting that demand into sustainable growth.
Saudi Arabia’s Q1 2026 figures show that international Umrah participation can fluctuate even when overall numbers remain stable. The issue for operators is not simply attracting pilgrims, but ensuring that every traveller feels confident before making a major financial and spiritual commitment.
The winners in the next phase will not necessarily be the companies offering the cheapest packages.
They will be the companies that make pilgrimage travel easier to trust.
For ASEAN, that means stronger regulation, better cross-border cooperation, smarter technology and products designed around real traveller needs.
The future of Umrah will be built not only on religious demand.
It will be built on confidence.
Quick Answers
How can I check whether a Malaysian Umrah operator is licensed?
Travellers should verify that the company is approved by Malaysia’s Ministry of Tourism, Arts and Culture (MOTAC) for Umrah-related travel services.
Tabung Haji manages Malaysia’s Hajj administration but is not the licensing authority for commercial Umrah travel agencies.
Before paying, pilgrims should confirm:
- the operator’s MOTAC status;
- package details;
- payment terms;
- cancellation policies;
- accommodation and flight arrangements.
How can I check an Indonesian Umrah operator?
Indonesian travellers should verify that the company holds a valid PPIU (Penyelenggara Perjalanan Ibadah Umrah) licence issued through Indonesia’s Ministry of Religious Affairs (Kementerian Agama).
Consumers should avoid operators that cannot provide valid licensing information.
Can women perform Umrah without a mahram?
Saudi authorities have confirmed that women may perform Umrah without a mahram under current regulations.
However, Islamic scholars continue to have different opinions on the religious interpretation of this issue.
Women should seek guidance from trusted scholars while also ensuring they use legitimate travel providers and safe arrangements.
Source: indotoday
