Posted inTravel & HospitalityLatest NewsSaudi Arabia

Saudi Arabia enacts new tourism law to spur new ventures, investments in the growing sector

The Saudi tourism minister said the new regulation and incentive package would accelerate the development of tourist destinations in the various regions, including NEOM, Al-Soudah, the Red Sea and Diriyah Gate

Saudi Arabia tourism

Saudi Arabia has announced a new tourism law, which among other things, will streamline licensing processes and procedures by creating a one-stop-shop platform for all tourism stakeholders.

The Saudi Council of Ministers also empowered the country’s tourism ministry to offer tax and custom exceptions or reductions to ventures in the sector in order to woo investments into the Kingdom’s growing tourism sector, SPA reported.

The latest law also envisages new or experimental tourism businesses to receive special licenses and support from the ministry for achieving faster growth.

The new tourism law, meant to further improve the regulatory environment in the country, is aimed at attracting tourism innovators and improving ease of doing business.

Ahmed Al Khateeb, Minister of Tourism, said the new regulation and incentive package would accelerate the development of tourist destinations in the various regions, including NEOM, Al-Soudah, the Red Sea and Diriyah Gate.

Al Khateeb said the new law followed the Kingdom’s recent announcement of the Regional Tourism Development Councils Regulation, a major milestone in advancing Saudi Arabia’s National Tourism Strategy.

“With a future-focused vision, we are working diligently to upgrade hospitality standards and provide unprecedented and enriching visitor experiences,” the minister said.

With the new legal framework, the tourism ministry will have greater control of the quality of tourism services offered within the country, ensuring the highest standards for both tourists and businesses, while also strengthening destination development.

The law also extends the ministry’s remit for swift collaboration with government entities to mitigate risks and manage crises.

It also enables the ministry to work collaboratively with other private sector entities to establish work plans and training programs, enabling job creation and training for Saudis and boosting human capital development in the Kingdom.

The tourism sector’s rapid development and its integration with modern technologies is also envisaged in the new law, including the provision of a new tool which administers permits for experimental tourism activities.

The tourism sector will be amongst the first sectors in the country to use this regulatory tool.
The law also contains key data considerations, stipulating the establishment of an information database containing statistics and information on all aspects of the Saudi tourism sector in line with international best practices for tourism investors, service providers, tourists, and other interested parties.

Published on the ministry’s website, the data will be updated regularly in coordination with relevant entities.

The new framework is aimed at achieving the goals set by the Kingdom’s national tourism strategy and vision 2030, including 100 million new visits, tourism’s 10 percent GDP contribution and 1 million new tourism jobs.

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