Saudi Arabia to Impose Fines of Up to 11 Million Riyals on Unlicensed Hospitality Facilities Starting January 2025

Starting January 1, 2025, all hospitality providers in Saudi Arabia, including local and international booking platforms, must ensure that listed properties are licensed and comply with the official classification granted by the Ministry of Tourism.

The directive, announced by the Ministry of Tourism, mandates the removal of all unlicensed or unauthorised facilities from listings to align with regulatory standards. Hospitality operators must obtain or renew their licenses before resuming business activities.

Penalties for Non-Compliance

Establishments failing to comply face significant penalties, including:

• Fines of up to 11 million riyals.

• Temporary or permanent closure of businesses.

• Public shaming, potentially harming reputations.

Strengthening Tourism Standards

These measures are part of Saudi Arabia’s broader strategy to enhance its tourism sector, ensuring safe, high-quality services for visitors. The Ministry emphasized the importance of compliance to maintain trust and deliver superior experiences for tourists.

The move comes after reports revealed that some hospitality providers were marketing properties without proper licensing, undermining quality standards and violating regulations.

Initiatives to Drive Compliance

To promote adherence to the new regulations, the Ministry launched the "Our Guests Are Priority" campaign. This initiative highlights the significance of licensing and classification compliance to elevate service quality.

The public is encouraged to report any hospitality concerns through the Unified Tourism Centre at 930. Booking platforms must also verify that all listed properties meet the Ministry's classification standards.

With these steps, Saudi Arabia reinforces its commitment to becoming a premier global destination, ensuring safety, quality, and compliance in its hospitality sector.

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