Pilgrims to Makkah in Saudi Arabia have a strong preference for locating in the central area of the city, in proximity to the Haram (a mosque). Available evidence suggests that this has led to considerable overcrowding and congestion. The objective of this paper is to identify the scope for decentralising the location of such temporary residents. In this connection, a model of seasonal housing markets is set up to study the impact of different projects on the spatial distribution of residents and on the welfare levels of consumers and producers of housing. Within the framework of the model, the economics of two specific housing and transportation proposals for dispersing pilgrims away from the center of the city is examined.
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