Saudi Arabia to launch kingdom's version of Airbnb

Law change is part of a push to open up the country to foreign tourism and investment

Safinat Haql on the Gulf of Aqabah. Reem Mohammed / The National

Edge of the World in Riyadh. Reem Mohammed / The National

Al Farid at Madaen Saleh in Al Ula. Reem Mohammed / The National

A street market in Al Balad, Jeddah’s historical district. Reem Mohammed / The National

Minaret of Masjid Al Farah in Al Balad, Jeddah’s historical district. Reem Mohammed / The National

King Faisal Center for Research and Islamic Studies in Riyadh. Reem Mohammed / The National

At-Turaif district in Ad-Dariya. Reem Mohammed / The National

Saudi traditional dance performance inside the At-Turaif district in Ad-Dariya. Reem Mohammed / The National

A date farm in Al Ula. Al Ula is known for its dates export. Reem Mohammed / The National

Saudi Arabia is to allow its citizens to operate Airbnb-style property rentals after the kingdom announced a new portal similar to the global lettings marketplace.

Minister of Tourism Ahmed Al Khateeb approved the tourism law on Wednesday.

Saudi Arabia is aiming to be a top-five global tourism destination by 2030 as the country's leadership opens up the country to foreign tourism and investment.

Citizens will need to apply for a permit to rent out their properties and submit a copy of the title deed or legitimate lease contract that proves ownership.

The country aims to increase the private sector's contribution to gross domestic product (GDP) to 65 per cent by 2030, up from 40 per cent in 2016, when Saudi Vision 2030 was announced. It wants to reduce its dependence on oil to grow its economy.

By 2030, the kingdom is seeking to create a million jobs for its young people in tourism, to account for 10 per cent of the country's GDP.

“This will definitely increase jobs and overall performance of the tourism and hospitality sector,” said Jeddah businessman Saeed Hamid.

“It is good to know we have strict measures in place and that the ministry will take into account the environment.

“I invest in local hotel apartments so I know that this move will change the game for the travel industry. Saudis are by nature hospitable and now people will get a chance to experience our homes and hospitality first-hand.”

Properties will be advertised through an official tourism service provider in line with the regulations set by the ministry, which will publish prices inclusive of taxes.

Strict guidelines have been issued on maintaining tourists' privacy, with constant surveillance of authorities on security, health and safety measures, including ambulance and evacuation procedures.

'Cheaper than five-star hotels'

JEDDAH: UNESCO's World Heritage Committee inscribed the old city of Jeddah and the Gate of Makkah on the World Heritage List in 2014. Pictured: windows covered with wooden screens known as "mashrabaiya" adorn traditional buildings in the old city of Jeddah. AFP Photo.

YANBU: A popular jumping-off point for diving in the Red Sea, and famed for its white, sandy beaches, Yanbu's star is on the rise. While it's also known for its refineries and petrochemical plants - the city boasts plenty of private beaches, and resorts geared towards families. John Fraser / Stockimo.

RIYADH: The capital and most populous city of Saudi Arabia is primarily considered a business destination. But, financial hub or not, the 6 million-strong city boasts some impressive skyscrapers - including the 302m-high Kingdom Centre, with a sky bridge connecting 2 towers, and the 267m-high Al Faisaliah Centre, with a glass-globe summit. The historic Deira suburb, and the Masmak Fort, is worth a wander around too. Faisal Al Nasser / Reuters.

TABUK: Steeped in ancient history, Tabuk is an agricultural-rich area on the Red Sea. It's known for a wealth of aspects, most notably it's diving, the Tabuk Castle which dates back to 1559, and the Hisma mountain range. Getty Images

MAKKAH: Located in western Saudi Arabia, this is considered the holiest site in Islam. Non-Muslims are strictly forbidden to enter the city. A pilgrimage to Makkah, known as the Hajj, is one of the Five Pillars of Islam, and is compulsory for all Muslims who are able. Each year, over three million Muslims visit the city during the month of Dhu'l-Hijjah. The Great Mosque of Makkah (pictured) is considered the holiest site in the city, and in Islam. The Kaaba, which it is built around, is a building said to have been built by Prophet Abraham himself and his son, Prophet Ishmael. Mast Irham / EPA.

MADINA: Considered the second holiest city in Islam after Makkah, this is said to be where the prophet Mohammed was buried. Pictured: the burial place is at the city's heart, at al-Masjid an-Nabawi (the Prophet's Mosque). Getty Images

DIR'IYAH: Another UNESCO site, this was once the home of the Saudi royal family, and served as the capital of the emirate of the same name from 1744 to 1818, under the first Saudi dynasty. The At-Turaif district in ad-Dir'iyah on the outskirts of Riyadh, is part of a major development project shepherded by Saudi King Salman. The heart of the 750 million riyal ($200 million/179 million euro) project is the restoration of At-Turaif, but it also includes the creation of the adjacent Abdul Wahhab Foundation which is designed to is designed to honour Sheikh Mohammed bin Abdul Wahhab, the 18th-century fundamentalist preacher who co-founded the Saudi state. Fayez Nureldine / AFP Photo.

ABHA: This mountainous area is known for its national parks, forests and mud-built castles and buildings. Its mild climate, and lush, green countryside make it a popular destination for domestic travellers throughout the year. Faisal Al Nasser / Reuters.

QASSIM: The Qassim region, 350 kms north of Riyadh is supposedly the richest region per capita in Saudi Arabia. Primarily a desert climate, its dotted with archaeological sites and is well-known for its traditional textiles. It's sliced through the middle by the Wadi Al Rummah, the longest valley in the Arabian peninsula, stretching for about 600 km from Madina to the Thuayrat Dunes. Hassan Ammar / AFP Photo.

The new law will help increase the variety of accommodation in the country, offering competitive prices and more options for tourists.

“Instead of booking hotels in foreign countries, I like to book local apartments to witness local hospitality, and it's much cheaper than booking five-star hotels all the time,” said Celine Ali, a Canadian living in Jeddah.

Nada Karam, a Saudi resident in Jeddah, said: “This will help increase tourism within the country itself. I think it's fantastic. We don't need to book expensive hotels and especially with children and big families.

“It's much easier to book a beautiful house where you can even take your staff, where they have more space and everyone can relax.”

Last year, the kingdom saw an increase of 575 per cent in tourism compared with the previous year, with 3.6 million visitors in the second quarter, according to figures released by the Ministry of Investment. There was also an increase of 42.3 per cent in domestic tourism.

“We recently stayed with a Saudi family and we absolutely loved the experience,” said Antony, a Chinese tourist in Jeddah. “It is great to see the country open up as we would have never been able to visit places like AlUla, had we not had the chance. Our friends came recently and recommended Saudi Arabia to us and that's why we are here.”

The National Tourism Strategy of Saudi Arabia aims to attract 100 million tourists by 2030.

Mr Al Khateeb said the kingdom has opened up foreign investment opportunities worth $6 trillion in its tourism sector.