Licensing and Classifying Tourism Hospitality Facilities: What Does the Owner Need to Know?

If your property provides overnight accommodation to visitors for a fee, you are operating in a regulated activity that requires a licence and a classification from the Ministry of Tourism. In September 2026 the Tourism Hospitality Facility Regulation (لائحة مرفق الضيافة السياحي) was published, setting out the conditions for licensing and classification and the obligations of the licensee.

This guide summarises what matters to owners in the regulation: who needs a licence, which documents are required, how licensing is linked to classification, and what the obligations are once it is obtained. It is a general explanation, not regulatory advice; the reference is always the official text in force.

Who needs a hospitality facility licence?

The regulation defines a tourism hospitality facility as any place that provides overnight accommodation to tourists for a fee, whether it operates permanently or temporarily. Article 3 provides that the activity of operating a facility may not be carried out without a licence, after the licence has expired or been cancelled, or while it is suspended or during a closure period.

The fee schedule in the regulation lists types including hotels, serviced apartments and holiday homes, inns, camps and temporary hospitality facilities. The types and categories of facilities are approved by a decision of the Minister or his delegate.

The licensee: a legal person

The regulation defines the licensee as an entity with legal personality that holds a licence from the Ministry. In practice, this means the licence is issued to an establishment, not to an individual in a personal capacity.

A furnished unit owned by an individual and rented by the night falls under a separate framework, the private tourism hospitality facility, which we explained in Holiday home and private unit permits.

Required documents

Under Article 4 of the regulation, the licence applicant submits the following:

• A valid commercial registration that includes the activity of operating a tourism hospitality facility.
• A valid municipal licence.
• A valid permit from the Civil Defence.
• A subscription to the Shomoos system.
• Proof of the right to use the trademark, if any.
• The completed approved data form.

Additional requirements

Article 5 also requires:

• A direct connection to the approved tourism monitoring interfaces.
• Meeting the basic classification standards for the required type and category or grade, or the licensing standards for unclassified types.

What this means for the owner: the classification standards are set before licensing, not after it. If you are building or renovating, know the standards of your target category before design and furnishing; changing things after the work is done costs more.

Licence term and renewal

• A licence is valid for no more than three years, and it is renewable (Article 8).
• The renewal application is submitted before the licence expires, and the renewal runs from the expiry date of the previous licence (Article 9).
• The Ministry may grant a grace period of no more than 60 days from the expiry date to complete the renewal procedures, counted as part of the term of the renewed licence.
• The licence states the facility's type, its category or grade, and its specialised category, if any (Article 8).

Put the licence expiry date in a standing follow-up schedule, and start the renewal well before it expires.

Fees

Fees vary by facility type, number of units and licence term (one, two or three years). The regulation's fee schedule includes the issuance and renewal fees for each category. Check the official schedule before financial planning, because the figures can be updated.

Classification: basic before licensing, operational after it

Classification under the regulation has two stages:

Stage	What it means	When
Basic classification standards	The requirements of the type and the category or grade	A condition for obtaining the licence (Article 5)
Operational classification standards	Service quality and operating obligations	After the licence is issued and throughout its term (Article 12)

Article 12 provides that a report of non-compliance with the operational classification standards is referred to the committee responsible for violations. In other words, classification is not a certificate to hang on the wall, but a level of operation that must be maintained.

Changing the classification

If you want to raise or change your property's category after a renovation or upgrade, Article 13 provides for:

1. Submitting a request to change the classification.
2. Meeting the basic and operational standards of the required category or grade.
3. A visit by the Ministry to the facility and the preparation of a report.
4. Changing the classification after the report is approved and the fee is paid.

If a decline in service level is established, or issues emerge from rating sources, the Ministry investigates and may refer the matter to the violations committee.

The licensee's obligations after licensing

Article 16 sets out operating obligations, most notably:

• Not dealing with unlicensed parties in marketing the services.
• Ensuring that published photos and descriptions match reality.
• Applying health requirements, and carrying out routine maintenance of the facilities and equipment.
• Notifying guests in advance of disruptive maintenance work.
• Supervising all units and controlling their management and operation.
• Using Arabic and English and both the Hijri and Gregorian calendars.
• Displaying a means of contacting the responsible manager at reception.
• Not refusing to provide the service without an acceptable regulatory reason.
• Providing a mechanism for guests to rate the services.

Article 15 provides that others may not be enabled to use the licence in an unlicensed facility.

Temporary or permanent closure

Article 10 requires the Ministry's approval before a temporary or permanent closure ahead of the licence's expiry. Plan any major renovation that requires closure with the Ministry in advance.

Where does the operator fit in this framework?

If you contract with an operating company, there are two different licences to distinguish between:

• The facility licence: for whoever operates the facility, and who bears the obligations of Article 16.
• The licence for the activity of managing hospitality facilities: the Regulations for the Management of Tourism Hospitality Facilities (لائحة إدارة مرافق الضيافة السياحية), issued by the Ministry of Tourism, require a licence for whoever carries out the management activity.

Because the new regulation requires the licensee to supervise the units and control their operation, the operating contract must state clearly who holds the facility licence and who bears each obligation. The details are in The hotel management and operating contract.

A short checklist for owners

1. Set the facility type and target category before design.
2. Review the basic classification standards for the category.
3. Prepare the documents: the commercial registration with the activity, the municipal licence, the Civil Defence permit and the Shomoos subscription.
4. Prepare the connection to the tourism monitoring interfaces.
5. Put the expiry date in a follow-up schedule and start renewal early.
6. Specify in the operating contract who holds the licence and who is bound by the operational standards.

Frequently asked questions

Can an individual obtain a hotel licence in their own name?

The regulation defines the licensee as a person with legal personality, that is, an establishment. Private units owned by individuals have a separate permit framework.

How long is a hospitality facility licence valid?

No more than three years, and it is renewable.

Is classification mandatory?

Yes, for classified types; meeting the basic classification standards is a condition for the licence, and compliance with the operational standards continues after it.

What happens if the licence expires before renewal?

The activity may not be carried out after the licence expires. The Ministry may grant a grace period of no more than 60 days to complete the renewal procedures, but do not rely on it in your planning.

Can the operator handle the licensing procedures?

The two parties can agree on this in the contract. What matters is that it is clear who the licensee is and who bears the regulatory obligations.

Next step

If you are planning to license or renew the licence for your property and are considering options for operating it, you can contact the Mirada team with your questions.