New Travel and Tourism Services Regulations: Guarantees and Compensation for Tourists
The Saudi Ministry of Tourism has revealed details of a comprehensive draft project aimed at amending the travel and tourism services regulations. This regulatory step seeks to restructure the sector and guarantee the rights of beneficiaries. The draft includes stringent financial requirements, most notably the imposition of financial guarantees of up to two million riyals, in addition to binding policies for immediate compensation for tourists in emergency situations. This reflects the Ministry's commitment to raising standards of quality and reliability.
Context of the national vision and development of the tourism sector
These regulatory measures are an integral part of the Kingdom's Vision 2030, which positions the tourism sector as a cornerstone of national economic diversification. Through its National Tourism Strategy, the Kingdom aims to attract more than 150 million visits annually by 2030 and increase the sector's contribution to the GDP. To achieve these ambitious targets, it is essential to establish a legislative environment that protects both domestic and international tourists and eliminates unregulated practices that could negatively impact the reputation of Saudi Arabia as a global tourist destination.
Financial guarantees and immediate compensation
The new regulations require license applicants to provide a bank guarantee or insurance policy with a value not exceeding two million Saudi riyals. This guarantee serves as a financial safeguard, from which tourists' financial rights and any fines imposed on the establishment will be settled. The regulations stipulate, with unprecedented strictness, that tourists' financial rights must be settled from this guarantee within 24 hours of the licensee being notified, thus ensuring a swift response and resolution of financial disputes.
Protecting the rights of tourists when services fail
The draft law established precise standards for consumer protection, obligating service providers to offer an equivalent or higher-quality alternative if they are unable to provide the agreed-upon service, or to issue an immediate full refund without any deductions. In cases of interruption of essential services such as electricity and water at accommodation facilities for more than two hours, the regulations offer tourists the option of a full refund or an alternative unit, ensuring that their tourist experience is not disrupted.
Classification of licenses and government fees
The regulations categorize licenses into two main categories: "Travel and Tourism Agency" and "General Travel and Tourism Services," covering all activities from ticket booking to organizing comprehensive tour packages. A new fee structure was also established, with the fee for issuing a "General Travel and Tourism Services" license for five years reaching 28,000 riyals, while the fee for agencies is 14,000 riyals for the same period. Operating without a valid license is prohibited.
Human resource development and quality standards
The draft also addressed the issue of human resources, imposing high qualification requirements. It stipulated that Saudi managers must hold a bachelor's degree with one year of experience, or a diploma with two years of experience. For expatriate workers in highly skilled professions, a minimum of seven years of experience was required. The amendments also emphasized the need for a minimum of one licensed tour guide for every 25 tourists, obligating companies to respond to complaints around the clock, and requiring the use of both Arabic and English in all communications to ensure effective interaction with tourists of various nationalities.
