Tourism Minister Commends Updated Regulations of Disposal of Municipal Real Estate

​​His Excellency Tourism Minister Ahmed bin Aqil Al Khateeb on Wednesday praised the updated regulations of the disposal of municipal real estate whose operational instructions necessary for their application had been issued earlier in the day by the His Excellency designate Minister of Municipal and Rural Affairs Mr Majid Al Hogail.

Mr Ahmed Al Khatib said that the regulations have solutions for obstacles that used to hinder investment in the tourism sector, such as increasing rent terms in long-term investments from 25 to 50 years, which is a stimulator for investors who lead the investment movement in the tourism sector. Al Khateeb also noted that extending the rent terms has always been and is still a main demand for investors in the tourist accommodation sectors, something which “I personally felt during my frequent meetings with senior investors in the tourism sector”.

The regulations, furthermore, aim at meeting the seasonal needs and providing new opportunities for business entrepreneurs in local tourist destinations, which is an important feature. 

Al Khateeb praised the fact that the amended regulations of the disposal of municipal real estates have gone into force, stressing that diversifying investment options in the municipal real estates that attract investment represents a good opportunity for investors in the tourism sector, including lands located at coasts and beaches open for investment according to disciplines that prioritize the basic needs available in cities, adding that all the Kingdom’s cities need a lot of investments in the tourism sector.   

The minister added that the tourism national strategy was developed to improve the quality of tourist products, which is a goal that we all work to realize so as to achieve the envisioned goals of the tourism national strategy, including increasing the contribution of the tourism sector in the GDP to 10 per cent by 2030, which requires hotels and tourism investments in cooperation with the private sector, noting that the municipal real estate represents an option that can help create a partnership with the private sector to realize these aspirations.

Al Khateeb​ concluded his remarks with reiterating that the Tourism Ministry hails cooperation with the Ministry of Municipal and Rural Affairs in this field with the aim of increasing the contribution of the private sector in developing tourist destinations in various cities of the Kingdom.