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19-04-23

Saudi Arabia to Require Special Licenses for Tourist Accommodation Providers, Tour Guides

(MENAFN) The Saudi Ministry of Tourism has announced that tourist accommodation providers and tour guides in the country will soon require a special license to operate in the sector. The government has identified seven activities that require special permits, including tourism accommodation facilities and their management, private tourism consultancy firms, and experimental activities. The license is designed to ensure a minimum standard of service and elevate the quality of services provided in line with international best practices.

The new regulations seek to further develop the Kingdom's tourism sector as part of Vision 2030, the country's plan to diversify its economy. Violators of any of the requirements are set to be imposed to a financial penalty of an estimated SR1 billion (USD266,617) or the termination of the facility as a whole. In February, the Minister of Tourism Ahmed bin Aqil Al-Khatib reported that Saudi Arabia's tourism spending surged 93 percent in 2022 to hit SR185 billion, up from SR95.6 billion in 2021.

During a monthly meeting with citizens, Al-Khatib urged investors in the sector to adhere to the new regulations set by the ministry to achieve a healthy competitive environment that is both fair and attractive to investment. The new regulations include developing proper procedures and requirements for practicing tourism activities while taking into consideration the diversity of services provided and raising quality levels. The minister also stressed the need to further raise the level of services provided in the sector through training and preparing the human cadre, which is the main factor in upgrading the sector.

Inbound tourism spending in Saudi Arabia is expected to recover from the impact of the coronavirus disease pandemic and reach USD25.3 billion by 2025, according to estimates released by market research firm Euromonitor International back in 2021.

Overall, the new regulations reflect Saudi Arabia's ongoing efforts to diversify its economy through the development of its tourism sector. By requiring special licenses and promoting high standards of service, the government aims to attract more visitors and investors to the country. As the tourism industry continues to grow, it is expected to play a significant role in achieving the country's economic goals and cementing its place as a global destination.
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