Saudi Gazette report

RIYADH — Saudi Arabia has abolished Tawafa Organizations by replacing them with Hajj Hospitality Companies. The Council of Ministers recently approved amendments to 21 articles of the Regulations for Service Providers of Foreign Pilgrims, issued in 1440 AH, with addition of another article.

The amended regulations stipulate that the newly created Hajj Hospitality Companies are classified into four categories: companies licensed to provide services to pilgrims in the city of Makkah and the Holy Sites; companies licensed to provide water to pilgrims in their accommodations within the city limits of Makkah; companies licensed to receive and transport pilgrims at the Kingdom's entry points and arrange their return to their home countries; and companies licensed to serve the pilgrims visiting the Prophet's Mosque in Madinah.

The amendments prohibit companies licensed to provide services to pilgrims in Makkah and the Holy Sites, as well as companies licensed to serve visitors to the Prophet's Mosque from providing these services themselves. Instead, they are required to establish one or more companies to provide services to pilgrims. However, companies licensed to provide water, and receive and transport pilgrims may establish companies to provide services to pilgrims.

The amendments also stipulate that no new companies may be established to host pilgrims. Furthermore, ownership and management of hospitality companies are restricted to Saudi citizens only. The inheritance of shares in pilgrim hospitality companies will be governed by the Personal Status Law, and the regulations will specify the procedures for non-Saudi heirs to withdraw their shares.

The amended regulations also stipulate that pilgrims or their representatives must contract directly with one of the service companies or companies providing water and receiving pilgrims. The regulations emphasize the need to broaden participation in pilgrim hospitality and service companies and to attract qualified Saudi nationals willing to work in order to provide the best possible services to pilgrims.

The amendments stipulate that any Hajj hospitality company, service provider, its board members, or any of its employees who violate the provisions of the regulations, bylaws, or executive decisions will be penalized by suspending the service provider company and any Hajj hospitality companies that provide the service themselves for a period not exceeding three years. Board members and employees of these companies will be penalized by removal from the board, dismissal from employment, or suspension from working in Hajj hospitality companies and service providers for a period not exceeding five years.

The amended regulations also grant the Ministry of Hajj and Umrah the authority to take all necessary measures to ensure the provision of services to pilgrims, including contracting with any other licensed service provider and recovering the cost from any company that violates its obligations. The ministry may also establish one or more coordinating councils for service providers for pilgrims from abroad, defining their responsibilities, tasks, and any other necessary provisions.