The Ministry of Tourism has implemented significant increases in the fines for operating hospitality businesses without a legitimate license.
As of Wednesday, October 22, the fine for unauthorized operations in major cities and crucial tourist locations has risen to SAR250,000, a jump from the previous SAR50,000. This adjustment highlights the ministry’s dedication to upholding regulatory standards and safeguarding the tourism industry’s reputation in the kingdom.
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The new penalties affect first-tier cities such as Makkah, Madinah, Riyadh, Jeddah, and Alkhobar, as well as prominent projects including NEOM, The Red Sea, Diriyah, Amaala, and Qiddiya. Establishments found operating illegally in these regions will face permanent closure until all violations are resolved, according to reports.
In second-tier cities like Taif, Dammam, Abha, Jazan, Tabuk, Hail, Buraidah, Khamis Mushait, Jubail, Najran, Yanbu, Hafar Al-Batin, Al-Baha, Al-Hofuf, and Sakaka, the fine has been raised to SAR150,000, also increasing from SAR50,000.
Tighter penalties and updated communication requirements
In addition to licensing penalties, the ministry has revised several other offenses to enhance oversight within the tourism sector.
Permitting another party to utilize a tourism license now incurs fines of SAR60,000 for first-tier establishments and SAR55,000 for second-tier ones, both reflecting an increase from SAR50,000. Additionally, penalties for hindering inspectors have doubled, now standing at SAR10,000 and SAR7,000, respectively.
To improve visitor interactions, a new regulation requires bilingual communication (in Arabic and English) for all tourist-related contacts via phone or email. Establishments have a seven-day period to remedy violations before incurring fines: SAR6,000 for five-star and luxury hotels, SAR5,000 for four-star hotels, and SAR2,000 for lower-rated serviced apartments.
Now, authorized inspectors can issue immediate fines for violations under SAR10,000, facilitating a more efficient enforcement process.
Graduated penalties and serious offenses
The newly revised regulations incorporate a graduated penalty system, ensuring that enforcement measures are proportional to the nature and severity of each violation.
Major violations encompass operating without a valid license, continuing business after suspension or expiration of a license, actions that jeopardize public safety or tarnish the kingdom’s tourism image, and obstructing official inspections.
Under this updated framework, penalties are assessed based on the size, location, and type of violation associated with the facility. Minor infractions will initially receive a warning, allowing for correction prior to financial penalties being levied.
However, repeat offenses within one year may result in fines being doubled, temporary suspensions, or even cancellation of licenses.
Implementation of a tiered zoning framework
As part of this regulatory reform, the ministry has established three tourism zones across the Kingdom:
- Tier 1: Includes Makkah, Madinah, Riyadh, Jeddah, Alkhobar, and major project locations such as NEOM, The Red Sea, Diriyah, Amaala, and Qiddiya.
- Tier 2: Encompasses Taif, Dammam, Abha, Jazan, Tabuk, Hail, Buraidah, Khamis Mushait, Jubail, Najran, Yanbu, Hafar Al-Batin, Al-Baha, Al-Hofuf, and Sakaka.
- Tier 3: Contains all other cities and governorates.
This zoning method allows for differentiated enforcement strategies reflecting the unique characteristics and significance of each area. The ministry stressed that this new framework aims to elevate service quality, enhance compliance, and protect Saudi Arabia’s status as a premier global tourism destination.
New categorization for severe violations
Alongside these updates, the Ministry of Tourism has introduced a new classification system to clearly outline severe violations while providing flexibility for minor issues.
The ministry stated that changes to the Tables of Violations, Penalties, and Enforcement Rules are aimed at bolstering compliance, ensuring fair enforcement, and aligning with the overarching goals of the Tourism Law.
According to the revised guidelines, penalties will be based on specific criteria, taking into account the size and location of tourism businesses—a strategy intended to support small and medium-sized enterprises and promote equitable application of regulations.
The ministry emphasized that the new classification system ensures a stringent approach to violations that have substantial implications on the industry while allowing time for businesses to address minor infractions before incurring fines.
These amendments are part of Saudi Arabia’s larger initiative to fortify its tourism framework, guarantee safety and service excellence, and align regulatory measures with international best practices as the nation advances toward its Vision 2030 tourism objectives.