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Asharq Al-Awsat
Asharq Al-Awsat
Business
Riyadh - Bandar al-Mosalam

Saudi Measures Limit New Fees that Affect Tourist Activity

A landmark is lit up in the colors of the national flag in Diriyah on the occasion of Saudi National Day. (SPA file photo)

Saudi Arabia directed the relevant public agencies to coordinate with the Non-Oil Revenue Development Center and the Ministry of Tourism before proposing any new taxes or fees that could affect tourist activities.

Last week, the government approved the new tourism law to be part of the system of development of the regulatory and legislative environment for the sector.

The newly approved law comes in line with the leadership's orders to build a competitive tourism sector and contribute to the goals of Vision 2030.

The Saudi cabinet added a new paragraph in the Ministry of Tourism law that requires coordination with the competent authorities to establish tourism colleges, institutes, and academies and set up specialized training courses and programs under regulations.

Saudi Arabia has set 90 days for establishments operating in the sector to apply to the Ministry to amend their conditions per the new law's provisions, subject to renewal.

After agreeing with the relevant government agencies, the Minister of Tourism may propose customs and tax exemptions related to tourism activities and the necessary incentives to revitalize the sector and submit them to legal procedures.

The Minister may entrust any of the Ministry's competencies and powers contained in the new law to any authorities with geographical jurisdiction, provided that the decision specifies the controls and conditions necessary for exercising those competencies and capabilities and their duration.

In cooperation with government agencies and private entities, the Ministry must set the annual workforce plan following the objectives of localization and the necessary standards and requirements from the competent authority, based on the classification of the World Tourism Organization and the best international practices.

Tourism Minister Ahmed al-Khateeb said the newly approved law comes in line with the leadership's orders to build a competitive tourism sector and contribute to the goals of Vision 2030.

Khateeb said that since the launch of the national tourism development strategy in 2019, work has continued to organize the sector, noting that during the pandemic, many tasks were issued to reach the desired reform.

He indicated that the tourism system was completed after establishing a ministry, authority, fund, and the Tourism Development Council.

"[The new law] will drive business and investment, support innovation, and attract tourists, in line with the best international practices," he added.

Khateeb stressed that organizing the sector continued with the recent issuance of the regulation of tourism development councils in the regions, hoping to accelerate the development of tourist destinations in various areas.

He explained that the law, prepared according to the best international practices identified by the top 20 countries in the World Economic Forum's Travel and Tourism Competitiveness Index, will further advance the national tourism strategy by promoting various tourist destinations.

"The law will accelerate the development of tourist destinations in various regions, including NEOM, Soudah, the Red Sea, and Diriyah Gate," Khateeb said.

Saudi Arabia is working on upgrading hospitality standards and providing unprecedented and enriching visitor experiences.

He added that this matter would be a decisive element in placing the Kingdom in its rightful place globally among the most attractive countries for tourists through its unprecedented experiences.

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