Saudi Arabia: SR1 million fine for unlicensed hospitality businesses

Cairo: Practising hospitality activities including daily apartment rentals in Saudi Arabia without licensing from authorities is punishable by fines of up to SR1 million, a legal expert has warned.

The penalties also comprise shutting down the business place and naming to shame the offender, expert Nayef bin Hamad said.

These measures run in line with a government circular issued to travel agents and operators of tourism services, hospitality facilities, and daily rentals, he pointed out.

Obtaining the operation licence from the Saudi Ministry of Tourism must meet specific requirements before the related units can appear on local and international rental platforms, Nayef said in video remarks.

Saudi Arabia has recently unveiled a host of facilities to draw more foreign tourists.

They include the issuance of tourist visas on arrival or online for citizens of several nationalities under a system launched in 2019.

Last year, Saudi Arabia also launched a four-day transit visa, allowing the holder to perform the Umrah or minor pilgrimage in the Grand Mosque in Mecca, visit the Prophet Mohammad’s Mosque in Medina and attend different events across the kingdom.

The number of tourists in the kingdom surged to more than 100 million last year.

Earlier this year, Saudi Tourism Minister Ahmed Al Khateeb said the kingdom’s tourism sector in 2023 fulfilled a target of 100 million tourists including 77 million local visitors and 27 million tourist arrivals.

The kingdom plans to be among the world’s top 10 tourist destinations and attract 150 million tourists annually by the year 2030 including 80 million domestic tourists and 70 foreign million visitors.