Praise be to Allah.
Scholars have disagreed on the multiplication of reward for prayer in al-Masjid al-Haraam reported in the narration of Ahmad from Jaabir where the Messenger of Allah (PBUH) said: “One prayer in my mosque is better than one thousand prayers elsewhere, except al-Masjid al-Haraam, and one prayer in al-Masjid al-Haraam is better than one hundred thousand prayers elsewhere.” [Related by Ahmad]. Some said that the multiplied reward applies to prayer in all Makkah. Rather, they said, the boundary of the whole Haram (Sanctuary).
Others said that it only applies to the prayer in al-Masjid al-Haraam, and this is the reliable opinion of the renowned scholar, Ibn Hajar Al-Haitami (May Allah have mercy on him). Had it included the whole Haram, the Prophet (PBUH) would have said: "for prayer within the boundary of the Haram or "prayer in Makkah." Considering the whole Haram equal to al-Masjid al-Haraam in terms of the multiplied reward for prayer isn`t backed by any evidence. Rather, some narrations have clearly named al-Masjid al-Haraam as (the Masjid of the Ka`ba), as is in [Sahih Muslim], and this is a clear text that the multiplied reward pertains to prayer only in al-Masjid al-Haraam, not Makka as a whole.
Ibn Hajar Al-Haitami (May Allah have mercy on him) said: "Prophetic traditions have indicated that prayer-in Al-Masjid Al-Haraam, according to the more correct opinion and the whole Haram, according to another-is privileged with this multiplication of its reward." {Tohfat al-Mohtaj, V.4/P.65}.
He added, "What is intended, here, is the Ka`ba and al-Masjid al-Haraam around it along with its enlargements, and-in another opinion- the whole Haram." {Tohfat al-Mohtaj, V.10/P.95}.
It was reported that the eminent scholars An-Nawawi and Al-Mawardi said that what is intended by al-Masjid al-Haraam is the whole Haram, not only the Masjid. Al-Sharwani said, "The reliable opinion of Al-Nawawi is that the multiplied reward for prayer applies to the whole Haram, not Al-Masjid Al-Haraam nor Makka."{Tohfat Al-Mohtaj Ma` Hawashi Al-Sharwani Wa Al-Abbadi, V10/P.95}.
They added that it is because all verses in which al-Masjid al-Haraam is mentioned refer to the Haram , except: "Turn then Thy face in the direction of the sacred Mosque" {Al-Baqarah, 144}, which is the Ka`ba itself. Therefore, applying the multiplied reward for the prayer offered within the boundaries of the Haram should take precedence over applying it to al-Masjid al-Haram alone. After narrating, the Hadith: "…… and one prayer in al-Masjid al-Haraam is better than one hundred thousand prayers elsewhere," Ibn A`ta` was asked: "Does the multiplied reward for prayer apply to al-Masjid al-Haraam alone or the Haraam? He said, both since the whole Haraam is a Masjid" {Related by Abu Dawoud At-Tayalisi, V.2/P.707}.
In light of the increasing number of people performing Haj and Umrah and the fact that al-Masjid al-Haraam can`t absorb all of them, then the saying that the multiplied reward for prayer applies to the whole Haram facilitates for the pilgrims and spares them hardship. This is provided that congregational prayer in the Masjids within the boundaries of the Haram is preserved. And Allah knows best.