New tourism regulations: Localization of guiding and prohibition of cash
The Saudi Ministry of Tourism announced the adoption of new executive regulations aimed at organizing the tourism sector and improving the quality of services provided to visitors. These amendments included three key decisions that will transform the tourism landscape in the Kingdom. The new regulations prohibit cash transactions in tourism services, restrict the profession of tour guide to Saudi nationals only, and limit the maximum number of tourists per tour guide to 25.
Details of the new regulations
Under the new regulations, tourism service providers are required to cease accepting cash as a form of payment and rely entirely on approved electronic payment channels. This move aligns with the Kingdom's efforts toward digital transformation, combating commercial concealment, and ensuring transparency in financial transactions within the sector. The regulations also stipulate that the tour guide profession will be exclusively reserved for Saudi citizens, thereby enhancing employment opportunities for young Saudi men and women and ensuring that historical and cultural information about the Kingdom is presented by its own people, who are intimately familiar with its details and heritage.
Regarding tour organization, the ministry has set a limit of 25 tourists per group per guide. This measure aims to ensure a high-quality tourist experience, enable guides to interact more effectively with visitors, and provide higher safety and security standards while moving between different tourist sites.
Context of Vision 2030 and National Transformation
These decisions cannot be viewed in isolation from the broader context of Saudi Vision 2030, which positions the tourism sector as a cornerstone for diversifying national income sources away from oil. The Kingdom aims to attract over 150 million visitors annually by 2030, a goal that necessitates a robust legislative and regulatory framework that meets international standards. The localization of tourism jobs is an integral part of the human capital development program, which focuses on training Saudi nationals to become ambassadors for their culture.
Economic importance and expected impact
These decisions are expected to have far-reaching positive impacts at both the local and regional levels. Locally, the cash ban will contribute to integrating the informal economy into the formal economy and increasing trust in the sector. The localization of tour guiding will create thousands of direct and indirect job opportunities and strengthen national identity within the tourism landscape. Internationally, these regulatory standards will enhance the Kingdom's ranking as a safe and well-regulated tourist destination, boosting foreign tourists' confidence in the quality of services offered and positioning Saudi tourism among the world's leading destinations that rely on technology and human capital as the foundation of their operations.
