Posted inLatest NewsSaudi ArabiaTravel & Hospitality

Saudi Arabia announces new rent law, allows citizens to lease to tourists

A fee will be imposed on the residential unit

Saudi Arabia private tourist hospitality facility
Tourists will only be accommodated after verification of the valid ID while checking in. Image: Shutterstock

Saudi citizens can now rent out their residential units to tourists for a fee, the Saudi Gazette reported citing the kingdom’s Minister of Tourism Ahmed Al-Khateeb newly approved bylaws.

As per the new regulations, a private tourist hospitality facility will only part of a property designated either for residential or for agricultural use.

The total number of permits issued to a person in one property cannot exceed three.

The minister or whoever he delegates may, by his decision and for considerations deemed by the ministry, suspend the issuance of permits for a specified period in any geographical area.

The bylaw also has a number of conditions to be met while applying for the permit:

  • Only Saudi citizens can apply
  • An electronic title deed or an electronic lease contract that proves the right of ownership or use of the property pertaining to the permit must be submitted
  • Applicant’s updated official data and the private tourism hospitality facility.
  • The applicant must also fill out an application form

The applicant must comply with the terms and conditions for the issuance of the permit. In addition, the licensee will provide the services in accordance with the permit issued and will ensure that others do not use the permit.

The licensee will also facilitate the inspector to perform his duties, cooperate with him and provide him with the required facilities, the report said, adding that the licensee is not allowed to use the name or logo of the ministry in any advertisement or marketing activity, except after obtaining its approval.

“He shall respond to the ministry through the representative of the private tourist hospitality facility around the clock,” the report said.

Moreover, the Saudi government has made it is mandatory for the licensee to meet a number of conditions to ensure the quality of the service.

Saudi Minister of Tourism Ahmed Al-Khateeb

This includes “showing the basic data specified in the permit clearly to the tourist inside the private tourist hospitality facility. The licensee shall not use an expired permit. He shall use only data that matches the permit, and pictures that correspond to the actual reality of the hospitality facility when it is published or advertised,” the report said.

General guidelines must also be displayed on a “visible place” inside the facility and the instructions shall include “details such as the use of parking lots, disposal of waste, prohibited behaviors, dealing with lost items, customer service number, tourist and emergency phone numbers, and so on.”

Public health rules, requirements at the facility and all its service for its employees must also be complied with by the licensee.

“The facility shall complete its cleanliness and maintenance preparations before the tourist’s entry. Use of Arabic or English languages, the Hijri and Gregorian calendars, is allowed in all dealings and official publications as appropriate with the desire of the tourist. The facility should not refrain from providing the services without any legally acceptable reasons for the tourist who has a confirmed reservation,” the report said.

In terms of advertising a property under the new bylaws, it must only be done by providers of travel and tourism services.

Information of the facility must be regularly updated and the advertisement must include details about the capacity of the facility when marketing it.

The bylaw emphasised that customers must adhere to the rules and regulations

“A list of prices for services shall be displayed in Arabic and English to the tourists, and that will be advertised through the travel and tourism service provider in line with the regulations set by the ministry, including statutory fees and taxes. Apart from maintaining the confidentiality and privacy of information related to tourists, they shall not share or use such information for any purpose without obtaining the tourist’s approval,” the report said.

The bylaw emphasised that customers must adhere to the rules and regulations.

A tourist must also not be forced to vacate a residential unit after checking in unless “through the intervention of the competent authorities, and in accordance with the relevant statutory provisions,” the report said.

A residential facility occupied by the tourist must also not be opened without permission, irrespective of whether the tourist is inside the facility or not.

“This is permissible only after coordination with the competent authorities and ensuring the safety of the tourist from dangers. The facility shall report immediately and directly to the competent authorities about any incident related to the security or safety of the tourist, or the facility, or its workers,” the report added.

Tourists will only be accommodated after verification of the valid ID while checking in. In case tourists do not have the required identity proof, they can be received after the endorsement from the competent authorities, according to the provisions of the bylaw.

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