Saudi cabinet approves loans for hotel, tourism sector
The maximum finance ceiling will be 50 percent of the estimated cost
The Saudi Council of Ministers on Monday endorsed sanctioning of loans by the Ministry of Finance to implement hotel and tourism projects in underdeveloped cities and regions, as well as at new tourism destinations.
The maximum finance ceiling will be 50 percent of the estimated cost approved by the ministry for the entire project.
But it should not exceed SR100 million. The existing maximum ceiling for financing is SR50 million.
Minister of Culture and Information Adel Al-Toraifi said that the Cabinet also stressed that the Saudi Commission for Tourism and Antiquities (SCTA) has to take necessary measures to grant licenses to those buildings that are licensed to accommodate Haj pilgrims to be used for housing Umrah pilgrims and visitors to the holy city.
The SCTA shall ensure that these buildings must adhere to safety standards and other requirements of the municipality and the Civil Defense, in addition to SCTA’s requirements for operating as hotels.
Meanwhile, SCTA President Prince Sultan Bin Salman said that the Cabinet decision will spur investments in the hotel and hospitality sector across the Kingdom and facilitate setting up of tourism projects in the recreational sector and heritage sites.
Tourism is the second major sector accommodating largest number of Saudis that makes up 29 percent of the workforce.
SCTA announced on Monday that appointment procedures have been started to hire 2,100 more Saudis in the hotel sector.