New regulations from the Ministry of Tourism to control hotel and room brokers
In a move aimed at enhancing transparency and improving the quality of services in the growing hospitality sector in Saudi Arabia, the Ministry of Tourism a comprehensive regulatory package that governs the contractual relationship between hospitality facilities (hotels and residential units) and commercial intermediaries and electronic booking platforms.
The context of tourism growth and Vision 2030
These regulatory moves come at a time when the tourism sector in the Kingdom is witnessing an unprecedented boom, in line with the objectives of the Kingdom’s Vision 2030 , which raised its ambitions to receive 150 million visits annually by 2030. With this massive expansion in the infrastructure of hotels and resorts, the urgent need has emerged to govern booking and re-leasing operations to prevent any arbitrary practices that may affect the tourist experience or harm the reputation of the sector, such as fake bookings or price discrepancies through unlicensed intermediaries.
Details of the new regulations: Transparency first
The new regulations focused on eliminating unlicensed "room brokers," with the ministry requiring all hospitality establishments to document rental contracts with brokers exclusively through approved electronic systems. This measure aims to:
- Accurate disclosure: Hotels are required to submit reports showing the percentage of rooms rented to platforms and travel agencies.
- Justification of violations: Providing official justifications if the share of intermediaries exceeds 50% of the total hotel rooms.
- Preventing covert transfers: Prohibiting the transfer of bookings from one intermediary to another without written consent from the hotel management and immediate notification to the tourist.
Protecting the pilgrims through "Nusk"
Given the paramount importance of the Hajj and Umrah sector, the Ministry has enacted a strict provision concerning pilgrims, mandating that all rental contracts for those arriving on Hajj and Umrah visas be processed through the approved government platform, "Nusk Masar ." This measure ensures the elimination of unlicensed brokers during Hajj and Umrah seasons and provides legal protection for pilgrims, guaranteeing they receive the agreed-upon services without manipulation.
Legal responsibility and quality of experience
The ministry emphasized that the hospitality establishment remains primarily responsible to legislative bodies for the quality of service provided to guests, regardless of the booking method. The regulations also criminalize the practice of booking rooms under fictitious names or the names of intermediary companies, requiring the registration of actual guest data to ensure security and safety.
These measures represent a qualitative leap in regulating the Saudi tourism market, as they will lead to the exit of intruders from the market and enhance fair competition among licensed platforms, which will positively impact tourists through price stability and the credibility of bookings.
