Saudi removes hotel licence fees to...

Hoteliers asked to reapply for operating licences online

Saudi Arabia will no longer charge hotels, hotel apartment or residential resort operators a commercial activity licence fee in a bid to boost the country's tourism sector.

The move, effective from 4 September 2024, is part of the Saudi Government’s Tourism Investment Enabler Programme, launched in March this year.

It aligns with Saudi Arabia’s Vision 2030, which is about positioning the country as a global tourism hub and reducing its dependence on oil revenues.

The initiative is expected to attract more investment in the tourism sector, increasing its contribution to Saudi Arabia's Gross Domestic Product (GDP).

The Ministry of Tourism and Ministry of Municipalities and Housing said they would ask hotel establishments to reapply for operating licences online.

According to reports, the ministries will organise workshops to explain and clarify the decision to hotel owners, and give advice and support to investors in the tourism sector.

The government approved a revamp of its investment law in August 2024, aiming to reassure international investors that they would be on a level playing field with Saudi nationals by simplifying business registration procedures.

Saudi Arabia had 27.4 million tourists in 2023. The neighbouring UAE was just a little ahead with 28.2 million visitors, but Saudi Arabia only began issuing tourist visas in 2019.

Real estate consultant Knight Frank said in a recent report that religious tourists could double to 30 million in 2025, considering hotel sector expansion. The government has a target of 50 million religious tourists per year by 2030.

Under Vision 2030, Saudi Arabia has invested more than US$800 billion to diversify its economy.

For more information, visit www.vision2030.gov.sa/en

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