Clampdown begins on Saudi’s unlicensed hospitality

• Establishments risk SAR1m fines
• Violators face public shaming
• Ruling to ensure standards

Travel and tourism service providers and booking platforms have been ordered by Saudi Arabia’s Ministry of Tourism to remove unlicensed hospitality facilities from their listings or “face penalties”. 

The ruling, which came into effect from January 1, is to ensure outlets offering hospitality meet a certain standard, the ministry said in a statement. 

It urged all establishments to obtain or renew their licences or face fines of up to SAR1 million ($267,000) and/or closure. 

Violators may also face public shaming, the ministry said in a statement on the Saudi Press Agency. 

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The ministry said there had been several violations by hospitality facilities which had been promoting their properties on local and international booking platforms without having the proper licences or permits to operate.

In September the ministry removed licensing fees for hotels, hotel apartments and resorts in a bid to increase tourism and improve the kingdom’s investment environment. 

Tourism spending in Saudi Arabia rose 27 percent in the third quarter of 2024, to reach SAR25.05 billion ($6.68 billion), according to the latest figures from the kingdom’s central bank. 

The General Authority for Statistics said the average daily room rate was SAR725.50 ($193.50) in Q2 last year, a slight dip on last year. The average length of stay was 5.2 nights, up 17.6 percent on 2023.

Riyadh Season 2024, a series of entertainment and sporting events from October to March, attracted 13 million visitors to the Saudi capital in ten weeks.