المملكة: Controlling “room brokers”… binding electronic contracts and prohibiting the transfer of reservations without notice – urgent

Released Ministry of TourismA new regulatory package regulates the contractual relationship between hospitality facilities and commercial intermediaries, with the aim of governing hotel room re-rental operations and ensuring the rights of tourists through binding electronic documentation mechanisms.

The new controls aim to raise operational efficiency and enhance the reliability of The tourism market by carefully defining responsibilities between hotels, booking platforms and travel agencies.

The new legislation requires all Tourist hospitality facilities by documenting rental contracts concluded with brokers exclusively through approved electronic reservation systems to ensure transparency of transactions.

The Ministry imposed on hotels and serviced units to submit accurate disclosure reports showing the numbers of rooms rented to electronic platforms and local and foreign travel agencies and their percentage of the total inventory.

The regulations required licensees to provide official justifications to the Ministry if the percentage of rooms rented to brokers exceeded fifty percent of the facility’s total capacity.

The controls categorically prohibited reservation platforms and travel agencies from passing contracted units to another broker. Without prior written approval from the tourism facility management.

The Ministry stressed the need to verify the regularity of the alternative broker, whether it is a licensed local or a foreign entity registered in its country, with the obligation to disclose these transfers.

The regulations prohibited the transfer of any previously reserved unit to a new broker without immediate notification to the tourist or guest, while ensuring the continuation of the conditions and specifications agreed upon in advance.

The Ministry approved the immediate termination of the rental contracts in force between the parties in the event Canceling or suspending the license of any party, to ensure dealing only with authorized regulatory entities.

The controls obligated hospitality facilities not to dispose of the rooms that were allocated and whose reservation was confirmed within the contracts, whether by the facility itself or through any other marketing parties.

With regard to the guests of God, the Ministry restricted all rental contracts to those arriving with Hajj and Umrah visas through the “Nasak Masar” platform, officially approved to control and document rights.

The legislation held the hospitality facility fully responsible before the Ministry for the implementation of reservations and the quality of services provided to the guest, regardless of the channel through which the reservation was made.

The controls criminalized the practice of registering rooms in the names of intermediary companies or travel agencies, stressing the necessity of registering guest data. The actual persons and their real personalities.

The Ministry of Tourism promised those who violate these provisions to apply the statutory penalties contained in the relevant regulations to ensure complete discipline in the sector.