Saudi Arabia’s Ministry of Tourism has issued new regulations aimed at tightening workforce localization, or Saudization, within the Kingdom’s tourism sector. These measures are designed to increase the participation of Saudi nationals in the workforce and ensure the availability of highly qualified local talent, thereby supporting the objectives of Saudi Vision 2030 for economic diversification and enhanced employment opportunities for citizens.
The new rules apply to 11 specific tourism activities. These include hotel operations, restaurant operations within hotels, holiday and resorts, various types of tourism accommodation (such as furnished apartments and boutique hotels), travel agencies, tour operators, event management companies, recreation and entertainment facilities, museums, heritage sites and parks, theme parks, water parks, and other general tourism activities not covered by separate Saudization programs.
For each of these activities, the regulation sets minimum Saudization percentages across different job levels: management, supervisory, specialist, and entry-level roles, in addition to an overall total percentage. For instance, hotel operations are required to achieve a total Saudization rate of 70%, with specific targets like 50% for management positions and 80% for entry-level roles. Other categories, such as tourism accommodation, travel agencies, and tour operators, generally have a total Saudization requirement of 50%.
The new regulations will be enforced for existing tourism establishments starting from the first quarter of 2024. For newly established entities in the tourism sector, the rules will come into effect from the first quarter of 2025. The Ministry of Tourism is responsible for monitoring compliance, and establishments that fail to meet these new localization requirements will face penalties. This initiative is part of the Ministry of Tourism’s broader strategy to localize more than 30 activities within the tourism sector, underscoring Saudi Arabia’s commitment to developing its national human capital in the rapidly expanding tourism industry. Employers in the Saudi tourism sector are advised to review their current workforce, recruitment strategies, and training programs to ensure adherence to these updated regulations.
Key Points
- New rules effective for existing establishments: Q1 2024
- New rules effective for new establishments: Q1 2025
- Number of specific tourism activities covered by new regulations: 11
- Ministry of Tourism’s broader goal: Localize over 30 activities within the tourism sector.
- Minimum Saudization percentages across various tourism activities and job levels:
- Hotel Operations: Total 70% (Management 50%, Supervisory 60%, Specialist 70%, Entry-Level 80%)
- Restaurant Operations (within Hotels): Total 60% (Management 40%, Supervisory 50%, Specialist 60%, Entry-Level 70%)
- Holiday & Resorts: Total 60% (Management 40%, Supervisory 50%, Specialist 60%, Entry-Level 70%)
- Tourism Accommodation (Furnished Apartments, Boutique Hotels, etc.): Total 50% (Management 30%, Supervisory 40%, Specialist 50%, Entry-Level 60%)
- Travel Agencies: Total 50% (Management 30%, Supervisory 40%, Specialist 50%, Entry-Level 60%)
- Tour Operators: Total 50% (Management 30%, Supervisory 40%, Specialist 50%, Entry-Level 60%)
- Event Management Companies: Total 50% (Management 30%, Supervisory 40%, Specialist 50%, Entry-Level 60%)
- Recreation and Entertainment Facilities: Total 50% (Management 30%, Supervisory 40%, Specialist 50%, Entry-Level 60%)
- Museums, Heritage Sites, Parks: Total 50% (Management 30%, Supervisory 40%, Specialist 50%, Entry-Level 60%)
- Theme Parks, Water Parks: Total 50% (Management 30%, Supervisory 40%, Specialist 50%, Entry-Level 60%)
- Other tourism activities (excluding those subject to other Saudization programs): Total 50% (Management 30%, Supervisory 40%, Specialist 50%, Entry-Level 60%)
Read the Complete Article.
