Saudi Measures Limit New Fees that Affect Tourist Activity

A landmark is lit up in the colors of the national flag in Diriyah on the occasion of Saudi National Day. (SPA file photo)
A landmark is lit up in the colors of the national flag in Diriyah on the occasion of Saudi National Day. (SPA file photo)
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Saudi Measures Limit New Fees that Affect Tourist Activity

A landmark is lit up in the colors of the national flag in Diriyah on the occasion of Saudi National Day. (SPA file photo)
A landmark is lit up in the colors of the national flag in Diriyah on the occasion of Saudi National Day. (SPA file photo)

Saudi Arabia directed the relevant public agencies to coordinate with the Non-Oil Revenue Development Center and the Ministry of Tourism before proposing any new taxes or fees that could affect tourist activities.

Last week, the government approved the new tourism law to be part of the system of development of the regulatory and legislative environment for the sector.

The newly approved law comes in line with the leadership's orders to build a competitive tourism sector and contribute to the goals of Vision 2030.

The Saudi cabinet added a new paragraph in the Ministry of Tourism law that requires coordination with the competent authorities to establish tourism colleges, institutes, and academies and set up specialized training courses and programs under regulations.

Saudi Arabia has set 90 days for establishments operating in the sector to apply to the Ministry to amend their conditions per the new law's provisions, subject to renewal.

After agreeing with the relevant government agencies, the Minister of Tourism may propose customs and tax exemptions related to tourism activities and the necessary incentives to revitalize the sector and submit them to legal procedures.

The Minister may entrust any of the Ministry's competencies and powers contained in the new law to any authorities with geographical jurisdiction, provided that the decision specifies the controls and conditions necessary for exercising those competencies and capabilities and their duration.

In cooperation with government agencies and private entities, the Ministry must set the annual workforce plan following the objectives of localization and the necessary standards and requirements from the competent authority, based on the classification of the World Tourism Organization and the best international practices.

Tourism Minister Ahmed al-Khateeb said the newly approved law comes in line with the leadership's orders to build a competitive tourism sector and contribute to the goals of Vision 2030.

Khateeb said that since the launch of the national tourism development strategy in 2019, work has continued to organize the sector, noting that during the pandemic, many tasks were issued to reach the desired reform.

He indicated that the tourism system was completed after establishing a ministry, authority, fund, and the Tourism Development Council.

"[The new law] will drive business and investment, support innovation, and attract tourists, in line with the best international practices," he added.

Khateeb stressed that organizing the sector continued with the recent issuance of the regulation of tourism development councils in the regions, hoping to accelerate the development of tourist destinations in various areas.

He explained that the law, prepared according to the best international practices identified by the top 20 countries in the World Economic Forum's Travel and Tourism Competitiveness Index, will further advance the national tourism strategy by promoting various tourist destinations.

"The law will accelerate the development of tourist destinations in various regions, including NEOM, Soudah, the Red Sea, and Diriyah Gate," Khateeb said.

Saudi Arabia is working on upgrading hospitality standards and providing unprecedented and enriching visitor experiences.

He added that this matter would be a decisive element in placing the Kingdom in its rightful place globally among the most attractive countries for tourists through its unprecedented experiences.



OPEC Again Cuts 2024, 2025 Oil Demand Growth Forecasts

The OPEC logo. Reuters
The OPEC logo. Reuters
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OPEC Again Cuts 2024, 2025 Oil Demand Growth Forecasts

The OPEC logo. Reuters
The OPEC logo. Reuters

OPEC cut its forecast for global oil demand growth this year and next on Tuesday, highlighting weakness in China, India and other regions, marking the producer group's fourth consecutive downward revision in the 2024 outlook.

The weaker outlook highlights the challenge facing OPEC+, which comprises the Organization of the Petroleum Exporting Countries and allies such as Russia, which earlier this month postponed a plan to start raising output in December against a backdrop of falling prices.

In a monthly report on Tuesday, OPEC said world oil demand would rise by 1.82 million barrels per day in 2024, down from growth of 1.93 million bpd forecast last month. Until August, OPEC had kept the outlook unchanged since its first forecast in July 2023.

In the report, OPEC also cut its 2025 global demand growth estimate to 1.54 million bpd from 1.64 million bpd, Reuters.

China accounted for the bulk of the 2024 downgrade. OPEC trimmed its Chinese growth forecast to 450,000 bpd from 580,000 bpd and said diesel use in September fell year-on-year for a seventh consecutive month.

"Diesel has been under pressure from a slowdown in construction amid weak manufacturing activity, combined with the ongoing deployment of LNG-fuelled trucks," OPEC said with reference to China.

Oil pared gains after the report was issued, with Brent crude trading below $73 a barrel.

Forecasts on the strength of demand growth in 2024 vary widely, partly due to differences over demand from China and the pace of the world's switch to cleaner fuels.

OPEC is still at the top of industry estimates and has a long way to go to match the International Energy Agency's far lower view.

The IEA, which represents industrialised countries, sees demand growth of 860,000 bpd in 2024. The agency is scheduled to update its figures on Thursday.

- OUTPUT RISES

OPEC+ has implemented a series of output cuts since late 2022 to support prices, most of which are in place until the end of 2025.

The group was to start unwinding the most recent layer of cuts of 2.2 million bpd from December but said on Nov. 3 it will delay the plan for a month, as weak demand and rising supply outside the group maintain downward pressure on the market.

OPEC's output is also rising, the report showed, with Libyan production rebounding after being cut by unrest. OPEC+ pumped 40.34 million bpd in October, up 215,000 bpd from September. Iraq cut output to 4.07 million bpd, closer to its 4 million bpd quota.

As well as Iraq, OPEC has named Russia and Kazakhstan as among the OPEC+ countries which pumped above quotas.

Russia's output edged up in October by 9,000 bpd to about 9.01 million bpd, OPEC said, slightly above its quota.