The Saudi Ministry of Tourism announced the issuance of a comprehensive regulatory package aimed at restructuring the contractual relationship between hospitality facilities and commercial intermediaries, in a strategic step that seeks to govern the tourism accommodation sector and guarantee the rights of all parties, especially tourists, through binding electronic documentation mechanisms that do not accept manipulation.
The context of tourism growth and Vision 2030
These regulatory measures come at a time when the tourism sector in Saudi Arabia is experiencing rapid growth, in line with the goals of Vision 2030, which aims to attract 150 million visits annually. With this significant expansion in hotel and resort infrastructure, there is a pressing need to close legislative loopholes that could be exploited by unregulated intermediaries, negatively impacting the visitor experience and the sector's reputation. Through these regulations, the Ministry is working to create a transparent investment environment that enhances the confidence of both investors and tourists.
Documentation and transparency mechanisms
Under the new regulations, the Ministry has mandated that all tourist hospitality facilities document their rental contracts with intermediaries exclusively through approved electronic systems. This measure aims to eliminate paper contracts or verbal agreements that are difficult to trace, thus ensuring complete transparency in financial and administrative transactions.
The ministry also imposed strict disclosure standards, requiring hotels and serviced units to submit accurate reports detailing the number of rooms rented to online platforms and travel agencies, both local and international. If the percentage of rooms allocated to intermediaries exceeds 50% of the facility's total capacity, official justifications must be provided to the ministry to prevent room monopolies and price manipulation through irregular means.
Banning the trading of reservations and protecting consumers
As part of consumer protection measures, the regulations strictly prohibit the practice of "booking swaps" between intermediaries. Booking platforms and travel agencies are forbidden from transferring contracted units to another intermediary without prior written consent from the facility's management. The ministry emphasized the necessity of immediately notifying tourists if their booked unit is transferred to a new intermediary, while ensuring the agreed-upon specifications remain unchanged, to prevent any unpleasant surprises upon arrival.
Privacy of the pilgrims and the “Nusk” platform
Given the paramount importance of the Hajj and Umrah sector, the regulations give special attention to pilgrims, restricting all rental contracts for those arriving on Hajj and Umrah visas to the government-approved "Nusk Masar" platform. This measure aims to eliminate fraudulent campaigns and undocumented hotel bookings that pilgrims may encounter, thus ensuring their safe and convenient stay.
Legal responsibility and inmate identities
The ministry concluded its regulations by holding hospitality establishments fully responsible for the quality of services and the execution of reservations, regardless of the booking channel. It also criminalized the previous practice of booking rooms under the names of intermediary companies, emphasizing the necessity of recording the actual guests' data and real identities for security and regulatory purposes, and warning violators of deterrent legal penalties that could include license revocation.
