New tourism regulations in Saudi Arabia: Fines up to one million riyals

In a strategic move aimed at enhancing the quality of the tourism sector and in line with the goals of Saudi Vision 2030, the Saudi Ministry of Tourism announced updates and stricter regulations for the schedule of violations and penalties related to travel and tourism services. This decision comes at a time when the Kingdom is witnessing unprecedented growth in the number of domestic and international tourists, with the National Tourism Strategy aiming to attract 150 million visits by 2030. To ensure the achievement of these goals, it was essential to establish a robust regulatory environment that guarantees the rights of travelers and deters any unethical practices immediately upon detection, reflecting the Kingdom's commitment to providing a world-class tourism experience.

The Tourism Ministry's regulatory department revealed that tourism inspectors have been granted the authority to impose immediate fines for violations not exceeding 10,000 riyals, with the aim of accelerating compliance in the market. Conversely, the approved regulations stipulate that a specialized committee will review violations and impose the larger penalties outlined in the tourism law, thus ensuring fairness and transparency in the application of the regulations.

Serious offenses and escalating penalties

The updated regulations clearly define a “serious violation,” which includes engaging in tourism activities without a license or continuing to operate after a license has been suspended. Serious violations also encompass any practice that harms public safety or damages the Kingdom’s tourism reputation, as well as refusal to cooperate with inspectors. The regulatory guide outlines strict, escalating penalties, reaching a maximum of one million riyals or five times the original fine, whichever comes first. To deter further violations, a daily penalty of 5 percent of the minimum fine has been established for each subsequent offense.

The measures did not stop at financial penalties. Article Four stipulated the committee's right to permanently revoke the license upon a fourth violation and to impose a temporary closure for sixty days upon a third violation. In an unprecedented deterrent step, the tourism authority emphasized the adoption of publicizing the violation, authorizing the committee to publish the text of its decisions at the violator's expense in a local newspaper in their place of residence. The ministry confirmed that this deterrent measure will be applied exclusively in cases of operating without a license, violating temporary closures, or committing serious violations that harm the tourism sector.

Reducing fines and geographical scopes

In its commitment to encouraging compliance, the Ministry introduced lenient mechanisms allowing for a reduction of financial penalties by 25 to 50 percent for entities that proactively take corrective measures and maintain a clean record. Fines will also be determined proportionally based on the size of the establishment, with micro-enterprises paying 25 percent of the penalty, up to 100 percent for larger enterprises.

The document outlined a new geographical division that affects the size of the penalty, with the first category including Mecca, Medina, Riyadh, Jeddah, and major projects such as NEOM and Qiddiya, in addition to websites, followed by other categories.

Protecting tourist rights and the impact of the decision

The legislation concluded with strict controls to directly protect tourists, obligating licensees to provide refunds within 15 days if services are not provided. The regulations also warned against deducting amounts from travelers' cards without prior agreement or failing to provide an alternative service of equal or higher quality if the original service could not be delivered.

This regulatory move is of paramount importance on all levels. Locally, it enhances the confidence of citizens and residents in tourism services. Regionally and internationally, it sends a clear message to investors and foreign tourists that the Saudi market is subject to rigorous oversight that ensures quality and safety, thus bolstering the Kingdom's competitiveness as a leading and trusted global tourist destination.