A look at municipal services fees for tourist hospitality facilities licenses in KSA

Saudi Arabia’s Minister of Municipalities and Housing Majed Al Hogail issued a decision to scrap fees for issuing commercial licenses for hotels, hotel apartments, and residential resorts, effective as of Sept. 4.

Under the Regulations of Municipal Services Fees, issued on Jan. 14, 2019, fees imposed on issuing licenses for local tourist hospitality facilities are based on the category classification approved by the Saudi Ministry of Tourism. They shall range between a minimum of SAR 10 and a maximum of SAR 250 each, depending on the facility type.

The ministerial decision came as part of the ongoing efforts to facilitate municipal procedures and services in Saudi cities, aimed at developing the local tourism sector and raising the quality of tourism services for citizens, residents and tourists. It shall further provide an attractive investment environment for investors and enhance sector competitiveness.

Saudi Minister of Tourism, Ahmed Al-Khateeb, recently said the number of hotel rooms in Saudi Arabia reached 280,000 by the end of 2023. An additional 250,000 keys are planned to be added through projects and the private sector by 2030, he said, noting that the private sector signed contracts to build 75,000 hotel rooms, data compiled by Argaam showed.