How to Start a Tourism Company in Saudi Arabia: Your Guide to Success

The tourism industry in Saudi Arabia is blossoming like never before. As part of Vision 2030, Tourism is a key driver in the transformation underway. Saudi Arabia’s cultural heritage, stunning natural landscapes, and historic sites have caught the world’s attention. According to Saudi Arabia’s tourism minister, the kingdom recorded over 100 million tourists in 2023. This is indicating an increase in international visitor numbers. For entrepreneurs, this is an exciting opportunity to tap into a fast-growing market. Setting up a tourism company here, however, requires understanding the legal requirements and processes. In this guide, we will walk you through the steps and essential information needed to establish a tourism business in Saudi Arabia. This includes: licensing requirements and registering with the Ministry of Tourism.

Why Start a Tourism Company in Saudi Arabia?

Saudi Arabia’s tourism industry is a promising venture for many reasons. The government is heavily investing in tourism infrastructure, including new hotels, attractions, and transport systems. The Ministry of Tourism reported that licensed hospitality facilities in Saudi Arabia have grown to over 3,950 by the end of the third quarter of 2024, showing a 99% increase from the same period last year. Key projects like the Red Sea Project, NEOM, and Qiddiya are examples of how the country is creating unique tourist destinations that are expected to attract millions of visitors. Furthermore, Saudi Arabia has made it easier for tourists to visit by introducing tourist visas. These visas allow travellers to explore the country’s rich heritage and modern developments. With the Ministry of Tourism actively promoting the sector and providing support to new businesses, now is the perfect time for entrepreneurs to dive into this growing industry.

Step-by-Step Guide to Setting Up a Tourism Company

Starting a tourism business in Saudi Arabia involves several steps, each requiring attention to detail. Here is a comprehensive guide to help you get started.

1. Research and Define Your Business Model

Before jumping into the paperwork, it’s essential to have a clear idea of the type of tourism business you want to operate. Decide if you want to start a travel agency, offer tour services, or create adventure tourism packages. Research the market to identify customer preferences and gaps in services that you could fill. Some popular tourism niches in Saudi Arabia include:

•  Religious tourism: Catering to pilgrims visiting Makkah and Madinah.

•  Adventure tourism: Offering hiking, desert safaris, and diving in the Red Sea.

•  Cultural and historical tours: Focusing on Saudi heritage sites.

•  Luxury and eco-tourism: Targeting high-end visitors with unique experiences.

Having a clear focus will help in aligning with Ministry of Tourism regulations and choosing the right licenses.

2. Regulatory Requirements

Obtain MISA License

The first legal step for a foreign-owned company is to have a MISA license. Typically, this would be a service license. You have to differentiate between licenses offered by Ministry of Investment. This blog will be beneficial for you Everything You Need to Know About the Business License Types in Saudi Arabia

Issuing a Commercial Registration Certificate (CR)

The second regulatory step in establishing your tourism company is registering it with the Saudi Ministry of Commerce. This process involves selecting a unique trade name, preparing the required documents, and publishing them through the necessary channels, and paying the necessary fees. You will need to submit documents such as:

•  Copies of your parent company’s statutory documents

•  Proof of address

•  A detailed business plan

All parent company documents must be attested up to the level of Saudi embassy in the parent country.Once your registration is approved, you will receive a commercial registration certificate, which is essential for further steps.

Obtain the Tourism Licenses

To operate legally in the Saudi tourism industry, you need a tourism licence from the Ministry of Tourism. There are four types of licenses: General Tourism and Travel Services, Tour Operations, Travel and Tourism Agencies and Accommodation Unit Bookings.These licences ensure that you meet all the requirements to provide safe and quality services to tourists. The Ministry may require proof of a physical office, adequate staffing, and experience in the tourism sector. The application process for a tourism licence usually includes:

•  Filling out an application form: You can access this form through the Ministry’s online portal.

•  Meeting safety and quality standards: The Ministry may conduct an inspection to ensure that your facilities meet tourism industry standards.

With the tourism licence in place, you will have the legal authority to operate as a travel agency or tour operator in Saudi Arabia.

Register with Relevant Authorities and Obtain Necessary Visas

• Your business will also need to register with other relevant Saudi authorities, including Zakat, Tax and Customs Authority to handle tax compliance. In addition, you have to register with General Organization for Social Insurance (GOSI) and the Chamber of Commerce in order to be eligible to hire employees and operate a local bank account.
• Obtain a license from Ministry of Municipality and Rural Affairs (MOMRA), or equivalent competent authority (this requirement may be exempted by the Minister or his designee).
• Get a document from the Saudi Authority for Intellectual Property certifying the right to use the proposed brand name. 
• If your business will bring international clients, ensure you understand the visa process, as Saudi Arabia requires specific visas for tourists. Your agency may assist clients with their visas, especially if they are visiting for pilgrimage or specific tourism purposes.
• If obtaining a General Tourism and Travel Services license or a tour operations license, provide the required financial guarantees (this requirement may be exempted by the Minister or his designee). The financial guarantees are meant to cover fines, protect tourists' rights, compensation for any damage resulting from the services provided

Apply for one of the listed license classes from the Ministry of Tourism, which requires the applicant to demonstrate that all of the above steps have been completed. Governify takes the hassle out of managing government and HR tasks. It streamlining everything from visa applications to license renewals in one easy-to-use platform.

3. Secure a Commercial Office Space

As per the Ministry’s regulations, your tourism company must have a physical office in Saudi Arabia. The office will be used for meetings, staff management, and handling customer inquiries. When choosing a location, consider factors like accessibility for clients and proximity to key tourist locations or government offices.

4. Build a Network of Local Partners

Building a strong network of local partners can help your business grow and provide more comprehensive services. For example, collaborating with hotels, restaurants, transport services, and other tourism companies can enhance the experience for your clients. Partnering with well-established businesses can also help you gain credibility. Consider joining Saudi Arabia’s Tourism Development Fund initiatives, which may provide financial support or partnerships to tourism companies focused on enhancing the visitor experience.

5. Develop an Effective Marketing Strategy

To attract customers, you will need an effective marketing strategy. Utilise both digital and traditional marketing channels to reach your target audience. Social media platforms, like Instagram and Twitter, are great for showcasing Saudi Arabia’s beautiful landscapes and cultural sites. Engaging content, attractive visuals, and collaboration with influencers can drive traffic to your tourism business. Creating a professional website is crucial. Ensure your website is user-friendly, mobile-optimised, and has detailed information about your services. Adding a booking system can make it easier for potential customers to reserve tours or other services online.

6. Focus on Training and Quality Service

Quality service is a cornerstone of success in the tourism industry. Consider hiring staff who are knowledgeable about Saudi Arabian culture and hospitality. Training employees to provide top-notch customer service can set your business apart, as tourists value guidance and helpfulness when exploring new destinations. The Ministry of Tourism offers various resources and certifications, which can add credibility to your team and enhance the service quality.

Establishing a tourism company in Saudi Arabia is a rewarding venture with the Kingdom’s emphasis on boosting tourism through Vision 2030. The country offers diverse attractions, from religious sites to stunning deserts and coastlines, making it an attractive destination for travellers worldwide. Following the right steps will set your business on the path to success. These steps are researching your niche, obtaining necessary licences from the Ministry of Tourism, building partnerships, and focusing on quality service. The journey may seem challenging, but with the right guidance and strategic planning from TASC experts, your tourism agency can contribute to Saudi Arabia’s growing tourism landscape. This also will lead you to reap the rewards of this rapidly growing industry.

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