Is the Farewell Tawaf Obligatory for the People of Jeddah?
Question

We are from Jeddah and after Hajj, some of those who were with us said that the people of Jeddah do not have to do the Farewell Tawaf. What should we do?
Praise be to Allah.Is Farewell Tawaf compulsory? 
The Farewell Tawaf is obligatory for the one who wants to leave Makkah after completing the rituals of Hajj, because Al-Bukhari (1755) and Muslim (1328) narrated that Ibn `Abbas (may Allah be pleased with him) said: The people were commanded that the last thing they should do should be to circumambulate the House, but this was waived in the case of menstruating women. 
Al-Hafidh (may Allah have mercy on him) said in Al-Fat-h: 
“This indicates that the Farewell Tawaf is obligatory, because the command is confirmed and because it is waived in the case of menstruating women; and a thing can only be waived if it is first confirmed.”
An-Nawawi (may Allah have mercy on him) said something similar in Sharh Muslim. 
The scholars differed concerning those for whom the Farewell Tawaf is obligatory. Some of them said that it is obligatory for the one who is going to travel and pass the Miqat, but for those who live within the Miqat, the Farewell Tawaf is not obligatory.  (See Radd Al-Muhtar, 3/545)
Others were of the view that it is obligatory for anyone who is going to travel the distance at which it becomes permissible to shorten the prayers (approximately 80 kilometres), but for those who are travelling a shorter distance, it is not obligatory. Ash-Shafi`i and Ahmad (may Allah have mercy on them) were of the view that it is obligatory for everyone who is going to travel from Makkah and exit the city. 
An-Nawawi (may Allah have mercy on him) said in Al-Majmu` (8/236): 
“We narrated from Al-Baghawi that the Farewell Tawaf is required of everyone who wants to leave Makkah and travel the distance at which it becomes permissible to shorten the prayers. He said: if a person wants to travel for less than that distance, he does not have to do the Farewell Tawaf. But the correct and well known view is that it is required of the one who wants to travel the distance at which it becomes permissible to shorten the prayers or less, whether that is a short or long distance, because of the general meaning of the Hadith.”
Ibn Qudamah (may Allah have mercy on him) said in Al-Mughni (5/337): 
“If a person's home is in the Haram, then he is like a Makkan and does not have to do the Farewell Tawaf . If a person's home is outside the Haram, but close to it, then the apparent meaning of Al-Khuraqi`s words is that he should not depart until he has bid Farewell to the House. This is the view of Abu Thawr and is similar to what Malik said, and is based on the general meaning of the words of the Prophet (peace and blessings of Allah be upon him): “No one should leave until the last thing he has done is to circumambulate the House.” And because he is leaving Makkah, he must bid Farewell, like one who lives far away.” End quote. 
Is the Farewell Tawaf Obligatory for the People of Jeddah?
The view that the people of Jeddah do not have to do the Farewell Tawaf was stated by some scholars, but the correct view is that it is obligatory for them. Based on that, those who did not do it have to offer a sacrifice (a sheep or one-seventh of a cow) to be slaughtered in Makkah and its meat distributed among the poor of the Haram. The same applies to everyone who omitted one of the obligatory parts of the Hajj rituals. 
Shaykh Ibn `Uthaymin (may Allah have mercy on him) said: 
“Whoever lives in Jeddah must not leave Makkah until he has bid Farewell.” (Majmu` Fatawa Ibn `Uthaymin, 23/353) 
Shaykh Ibn Baz (may Allah have mercy on him) was asked about some people from Jeddah who did not do the Farewell Tawaf and went back to Jeddah. 
He replied: 
“Their Hajj is valid, but they have done wrong by omitting to bid Farewell, because the Messenger (peace and blessings of Allah be upon him) commanded the pilgrim to bid Farewell, and said:  “No one should leave until the last thing he has done is to circumambulate the House.”  
This command, which is addressed to the pilgrims, includes the people of Jeddah and others. So all the people from other cities – whether they come from Jeddah or At-Ta`if or anywhere else – should bid Farewell to the House.
Some scholars granted a dispensation to those whose homes are closer than the distance at which is becomes permissible to shorten the prayers, such as the people of Bahrah etc, and said that they do not have to bid Farewell, but in order to be on the safe side, everyone who comes from outside the sanctuary should bid Farewell when his Hajj is over. The people of Jeddah live far away, as do the people of At-Ta`if, so they should bid Farewell before they leave, because the Hadith applies to them too. They should offer a sacrifice to be slaughtered in Makkah for each of them who did not do the Farewell Tawaf , the meat of which should be distributed to the poor, a sheep or one-seventh of a camel or one-seventh of a cow” (Majmu` Fatawa Ibn Baz, 17/394)
It says in Fatawa Al-Lajnah Ad-Da’imah, 11/303: 
“If you do Hajj then you should not travel to Jeddah after your Hajj until you have done the Farewell Tawaf; if you travel before bidding Farewell, then you have to offer a sacrifice to be slaughtered in Makkah, from which you should not eat, rather it should be distributed to the poor, because the Farewell Tawaf is obligatory after Hajj, because of the general meaning of the Hadith of Ibn `Abbas (may Allah be pleased with him), who commanded the people that the last thing they should do should be to circumambulate the House, but this was waived in the case of menstruating women. (Narrated by Al-Bukhari and Muslim) And you also have to repent to Allah for going out to Jeddah before doing the Farewell Tawaf.”
And Allah knows best.