Updating tobacco sales requirements and exempting tourist hospitality facilities

The Ministry of Municipalities and Housing in the Kingdom of Saudi Arabia announced substantial and qualitative updates to the regulatory bylaws concerning the requirements for selling tobacco and its products, in a move aimed at enhancing the investment environment in the tourism and hospitality sector, while maintaining the urban and health organization of cities.

The new decision includes an explicit exemption for "tourist hospitality facilities" from the 500-meter distance requirement from mosques and schools, a condition previously applied strictly to all retail outlets without exception. This amendment reflects greater flexibility in dealing with hotel and tourism establishments that offer comprehensive services to visitors.

Details of the decision and the difference between shops and hotels

Under the new updates, two types of retail outlets have been legally separated:

• Tourist hospitality facilities: They have been exempted from the requirement to be 500 meters away from educational institutions and mosques, due to the nature of their closed work and their targeting of a specific category of guests and tourists, which reduces the direct impact on the general environment of schools and mosques.
• Independent shops: The Ministry maintained the mandatory distance requirement (a radius of a circle of 500 meters) for ordinary shops or those located within buildings not classified as tourist sites, in continuation of efforts to reduce the spread of smoking among young people and to preserve the sanctity of mosques and the school environment.

The context of Vision 2030 and supporting the tourism sector

This decision cannot be viewed in isolation from the Kingdom's overall direction under Vision 2030, which positions the tourism sector as a key pillar of national economic diversification. The Kingdom aims to attract millions of tourists annually, requiring a flexible legislative framework that aligns with global standards in the hospitality industry.

This exception helps resolve a dilemma faced by many investors in the hotel sector, particularly in central and densely populated areas, where the distance requirement previously hindered the provision of comprehensive services to guests due to hotels' proximity to schools or mosques in neighboring districts. This facilitation is expected to encourage further investment in the tourism accommodation sector and improve the quality of services offered.

Balance between public health and economic activity

Despite the concessions granted to the hospitality sector, the updated regulations emphasize the need to adhere to other planning and environmental standards. The decision does not imply any leniency in combating smoking; rather, it represents a spatial reorganization that differentiates between "public street vending," accessible to everyone, and "hotel services," which are restricted to within establishments.

The relevant authorities in the Kingdom continue to implement tobacco control strategies through selective taxes, awareness campaigns, and banning smoking in enclosed public places, creating a delicate balance between tourism and economic openness and preserving the public health of society, especially the youth.

The updated text is considered a key reference for issuing new municipal licenses, and it gives investors greater clarity in feasibility studies for their upcoming tourism projects, thus enhancing the attractiveness of the business environment in Saudi cities.