Concerns grow over potential Umrah monopoly as licensing changes take effect

According to a statement from the Committee on Religious Affairs, a law enacted on July 2, 2024, designates the Committee as the authorized body responsible for issuing licenses for Umrah services starting from October 5. "This means that any licenses issued by the Tourism Committee for conducting Umrah pilgrimages will automatically cease to be valid," an official from the Committee stated in an interview with Kun.uz.

As a result, operations based on licenses issued by the Tourism Committee are considered illegal after October 5, and organizations engaging in such activities may face fines equivalent to 200 times the BCU (approximately 75 million UZS).

The core issue arises from the fact that the Committee on Religious Affairs currently lacks established procedures for issuing new licenses. Despite the new licensing period officially starting five days ago, no clear guidelines have been made available.

The press service of the Religious Affairs Committee indicated that a draft government resolution regarding the new licensing requirements has already been prepared and submitted to the Cabinet of Ministers. However, until the new regulations are released, travel firms have no legal means to continue their operations.

Concerns have been raised about the potential resurgence of a monopoly in Umrah tourism. Previously, the sector had transitioned to a free market system, allowing for increased competition and more accessible services. After public protests in 2022, the government partially permitted the organization of Umrah tours through travel companies, leading to a significant rise in the number of firms offering these services. This increased competition resulted in more favorable pricing for consumers.

However, a government decision on November 1, 2023, complicated the operations of travel firms organizing Umrah tours by imposing several stringent conditions. These included requiring firms to deposit a minimum of $100,000 in bank accounts, hiring specialists in Islamic education, and appointing a group leader from the Muslim Board.

The recent termination of previously issued "indefinite duration" licenses has prompted concerns that the Religious Affairs Committee may introduce even more stringent licensing requirements for travel companies.

Additionally, in August 2023, Saudi Arabia opened up electronic visa applications for citizens of Uzbekistan, allowing travelers to apply online or obtain a visa upon arrival at the Saudi border. This move has made Umrah accessible without necessarily going through a travel agency, further complicating the situation for tour operators.

As Uzbekistan embraces a more open approach to international relations, the motivations behind the Committee on Religious Affairs imposing such artificial barriers remain unclear.