Saudi Arabia tells pilgrims to use new online system and to seek refunds from any agencies they have already paid

British Muslim travel companies have said they face going out of business, with travellers potentially losing thousands of pounds, after Saudi Arabia launched a new system for applying for the hajj pilgrimage.

The Saudi government announced this month that pilgrims from Europe, the US and Australia could no longer book through travel agencies and would instead have to apply through a lottery system.

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