The New Tourism Law is aimed at boosting more investment and improving ease of doing business in the Kingdom. This allows tourism businesses to receive special licenses and will also facilitate licensing processes by creating a one-stop-shop platform for all tourism stakeholders.

In addition, the new law includes:

• Undertaking mitigation measures to prevent risks and manage crisis.
• Providing financial guarantees for certain tourism activities.
• Exemption from taxes or customs duties after the approval of the concerned authorities.
• Establishing an information database providing statistics and information on all aspects of the Saudi tourism sector.
• Banning insulting the reputation of domestic tourism.
• Setting the annual workforce plan, collaboratively with government agencies and private entities, in accordance with the objectives of Saudization, based on the classification of the World Tourism Organization.

The Ministry of Tourism clarifies penalties for whoever violates any of the provisions of the new law. They are listed in (Article 16) of Royal Decree No. (M/18) of 1444 AH as the following:

Without prejudice to any penalty provided for in any other law, or the right of the aggrieved person to claim compensation for the damage resulting from the violation of the provisions of this law, the following penalties shall be imposed:

a. A Warning;

b. Temporary or permanent closure of the tourist facility or part thereof;

c. Classification downgrade;

d. Suspension of the license for a period not exceeding one year;

f. Cancellation of the licence; and

g. A fine not exceeding one million riyals.

See Westlaw Middle East for the English text: Royal Decree No. (M/18) of 1444 A.H., Promulgating the Tourism Law