In the Gulf region, Saudi Arabia is one of the favorite destinations for all types of travelers, making it a great place to start a travel business. Under Vision 2030, the Saudi government is supporting new travel businesses to meet the increasing demand for quality leisure experiences and tour services. Whether you’re planning to start a travel agency or other travel business in Saudi Arabia, the regional market will offer you excellent opportunities to grow.
With Express Business Service, you can secure expert guidance for successful business planning. Our team helps clients obtain necessary approvals and get a valid license. With us as your business setup partner in KSA, you don’t have to worry about dealing with authorities and other steps in the company registration.
Planning to start a travel business or travel agency Riyadh, Saudi Arabia, you’re indeed making a smart investment. The Saudi government, under the Vision 2030 plan, aims for 150 million visitors by 2030 and is actively investing in developing new attractions and infrastructure, like NEOM, to improve the country’s appeal as a leisure destination. Here is why starting a travel business in KSA is a profitable idea:
Booming Tourist Market
The tourism sector in KSA is rapidly growing to achieve the 150 million visitor target by 2030, which is creating excellent opportunities for travel businesses.
Strong Government Support
The Saudi government is actively supporting investors or startups who wish to operate in the country’s tourism sector with great incentives, tax benefits, and others.
Prime Geographical Position
Investment in Hospitality Facilities
Rising Market Demand
The rising demand for premium travel services for cultural tours, desert trips, business tours, and leisure trips is also making starting a travel business in KSA a profitable deal.
Types of Travel Business Models in Saudi Arabia
These businesses sell travel-related products and services, like flight bookings, car rentals, holiday packages, and more, directly to travelers online. If you want to choose OTA, you must use modern software and APIs to connect with GDS, which gives access to a wide variety of travel services.
You choose what types of travel services and packages you want to offer. If you choose religious tourism, your services will be for pilgrims planning Hajj and Umrah. Some other options available are cultural immersion, women-only tours, wellness tours, and adventure experiences.
These can be corporate travel management companies that offer services to other companies for business travel, including itinerary planning and booking with flexible policies. Businesses offering car rental and travel insurance services for domestic and international visitors also come under this category.
Tourism Industry Overview in Saudi Arabia
The Saudi government aims to diversify its economy to reduce dependence on the oil sector, which is creating new business and job opportunities. To make the country a more appealing tourist destination, the government is making large-scale investments in the development of airports, hotels, entertainment zones, and others. Additionally, attractive programs like the TIEP are introduced to simplify the licensing procedure.
In 2023, KSA welcomed over 100 million visitors, and now the country is progressing to achieve the target of 150 million visitors by 2030. Although non-religious tourism has seen significant growth, religious tourism is the main factor that attracts many international visitors coming to the country to visit Mecca and Medina annually. Moreover, events like Souk Okaz and the Jenadriyah Festival are also attracting tourists interested in Saudi culture.
Legal Requirements for Starting a Travel Agency
Business Registration
The first requirement to start a travel agency in Saudi Arabia is to register your business with the MOC under the correct legal structure. This is needed to secure a legal identity and approval to conduct business operations within the country.
Ownership & Shareholding Rule
Compliance with Vision 2030 Guidelines
Saudization Policies
Tax & Zakat Registration
Compliance with Vision 2030 Guidelines
Commercial Office Requirements
Licenses & Permits for Travel Businesses in Saudi Arabia
- Tourism Agency License (Ministry of Tourism): Firstly, you need to obtain a Tourism Agency License from the MoT. Without it, you can't operate legal operations in the country’s tourism sector.
- Special permits for Hajj & Umrah packages: If you plan to offer Hajj and Umrah service packages, you need to obtain special permits from the authority. Only after providing the proof that your business can manage pilgrim safety, accommodation, and transport with Saudi regulations will you get the permits.
- Commercial Registration (CR) & Municipality License: Apart from obtaining a tourism license, you need to register your business with MoT to get a CR. You must also secure a municipality license, which approves your chosen office space as suitable for business operations.
- ZATCA Tax Registration & Insurance: After obtaining a CR and municipality license, you must register your business with ZATCA. which makes sure your business follows all tax rules. Moreover, get insurance to protect your clients from any issues like cancellations and accidents.
- MISA approval (for foreigners): All non-Saudi business owners need to obtain a MISA license to start a travel business in the country. This gives them complete rights to operate in the country.
Step-by-Step Process to Start a Travel Business
You need to follow certain steps to start a travel business in Saudi Arabia, and if you’re not aware of the entire process, you don’t have to worry. With Express Business Service, you can make a smooth and seamless entry into the Saudi Arabian market, as our team is an expert in offering customized business setup services:
Choose Legal Structure & Register the Company
Start the setup process by selecting a business structure for your travel agency, like an LLC is a common choice. Then you need to secure a unique trade name and MISA approval if you’re a foreign business owner. Once you obtain the approval, register with MoC to get a CR.
Obtain Tourism License
The next step in the setup process is to obtain a tourism agency license from the MoT. You need to apply with the required documents, like trade name proof, office lease, and other business documents. You also need to secure insurance to obtain this license.
Secure an Office & Municipality License
Now start finding a suitable office space that complies with municipal requirements and your business needs. Once you’ve found one, you need to secure a lease agreement and approval from the local municipality.
Register for Tax & Banking
All businesses need to register with ZATCA for VAT and corporate taxation. After registration, your business invoices and transaction records are always compliant to avoid any issues. You also need to open a corporate bank account to manage your finances smoothly.
Hire Staff & Meet Compliance
Hiring employees while meeting Saudization policies is important for all business owners in KSA. You also need to make sure to register them with GOSI to comply with the employment laws of the country.
Launch Operations
The last step in the process of starting a business in Saudi Arabia is to partner with reliable airlines, hotels, and other service providers. You need to set up an advanced booking system, develop clear customer policies, and create an effective marketing plan before launching your services.
Cost of Starting a Travel Agency
The cost of starting a travel agency in Saudi Arabia can vary depending on the type of business model, office location, and services chosen. You need to spend initially on business registration, MoT license, municipality approval, and tax registration. Some other expenses are office rent, staff salaries, insurance, and marketing. If you want to make an affordable entry into the Saudi Arabian market, Express Business Service can help you get a clear estimate of initial investment based on your needs.
How Express Business Services Will Help You Set Up a Travel Business in Saudi Arabia
You can make the entire business setup process in Saudi Arabia stress-free with Express Business Service. We are experts in offering customized business setup services and helping clients from diverse sectors obtain the necessary approvals and permits. Our team simplifies the setup process, helps you save costs and time, and supports your growth in the Saudi Arabian market.
- End-to-End Business Setup: We help our clients in choosing the right legal structure, assist them with business registration, and obtain necessary licenses and permits from relevant authorities.
- Expert PRO (Public Relations Officer) Support: With us as your reliable partner, you don’t have to worry about dealing with paperwork. Our team provides expert PRO services to assist clients with document preparation, visa processing, and securing a travel agency license in Saudi Arabia.
- Streamlined Licensing & Compliance: Whether you need help to get a MoT license or municipal approvals, we can assist with everything. We make sure all documents are submitted and steps are correctly filled, so you don’t have to deal with any issues during ZATCA tax registration, GOSI registration, and others.
- Customized Support for Foreign Investors: For foreign business owners and investors, we help in obtaining MISA approval, guide them on local regulations like Saudization policies. We support our clients in developing strategies that can help them secure a strong presence in KSA.
- Ongoing Legal & Administrative Support: We provide constant support to our clients by providing legal support, immigration help, accounting services, and translation support to make sure they can easily start their travel business in Saudi Arabia.
How Foreigners Will Set Up Travel Business in Saudi Arabia
If you’re a foreigner and want to start a travel business in Saudi Arabia, you need to secure some additional permits and meet certain requirements. Like local businesses, you need to get a MoT permit and CR. However, foreign businesses need to get an MISA license to legally operate in the country.
They can set up a business with complete ownership benefits or start a business with a joint structure with a local partner. This requirement is based on the type of services you’ll offer, investment size, and selected business model. Generally, the approval for a partnership business takes a longer time.
It’s also important for foreigners to comply with rules like Saudization guidelines, ZATCA tax registration, and securing necessary insurance. The business setup in KSA is easier for expats, as the government is actively supporting investors to achieve the goals by 2030.
Popular Tourist Destinations in Saudi Arabia
Makkah & Madinah
Makkah & Madinah
Riyadh
Riyadh
Al-Ula
Al-Ula
Jeddah
Jeddah
Abha
Abha
Benefits of Running a Travel Business in Saudi Arabia
- Not only during peak Hajj and Umrah seasons, the KSA welcomes visitors throughout the year as the country's leisure and corporate travel demand is increasing.
- You can start with offering a specific service, like religious tours, and then expand your packages for cultural, adventure, and other tours to secure higher profits.
- If you compare the Saudi tourism sector, it is less competitive compared to markets in UAE and Qatar, as new business opportunities are being created under Vision 2030.
- After you establish a travel agency in Saudi Arabia, you can work with reliable hotels, airlines, and transport service providers to secure loyal customers.
- The government is consistently supporting travel businesses in the private sector to achieve the tourism goals by 2030.
Challenges & Tips for Success in the Saudi Tourism Sector
Although Saudi Arabia offers great opportunities for travel businesses, new agencies may also face certain challenges. If you are already aware of them, you can be prepared in advance, making it easier to succeed in this competitive market.
Common Challenges:
- Regulatory Requirements: All travel businesses must follow strict licensing rules and government guidelines, like obtaining certain approvals, which can be complicated for new investors.
- Market Competition: Every year, many travel businesses enter the Saudi Arabian market, and to stand out, you need to offer really unique packages and invest in strong marketing.
- Cultural Sensitivity: Those who want to start a travel agency in Arabia must make sure that their tours respect local traditions and cultural values.
- High Initial Costs: Businesses need to spend a significant amount in the beginning to set up a physical office, marketing, hiring staff, and others.
Tips for Long-term Success:
- Stay Compliant: The best tip to secure long-term success in the Saudi Arabian market is to always keep your licenses, permits, and registrations up to date. You also need to comply with all standard rules to avoid fines and legal issues.
- Offer Unique Packages: You must focus on particular tours and offer customized services like special religious packages to attract customers.
- Use Technology: If you've decided to start an online travel agency in KSA, you must use advanced online booking systems, apps, and others to make sure your services are easily accessible by clients.
- Build Partnerships: Partner with reliable hotels, airlines, and other businesses to make sure your customers get quality services, which will help you earn their trust.
Frequently Asked Questions & Answers
No, foreign businesses don’t necessarily need to partner with a Saudi national to start a travel agency Riyadh, Saudi Arabia. They are provided with complete foreign ownership in the country, but they need to obtain a MISA license and follow regulations set by the government, like Saudization obligations.
The cost to start a travel business in KSA varies depending on the business model, location, and other requirements. Some expenses you need to deal with initially are license fees, office setup, insurance, marketing costs, and others.
Yes, foreigners are allowed to run an online travel agency Riyadh, Saudi Arabia, with complete ownership benefits. They need to obtain necessary licenses like MISA and follow the local regulations, like Saudization rules.
