The Saudi Commission for Tourism and Antiquities (SCTA) has warned that it will impose stiff fines of up to SR10,000 and suspend the licenses of hotels and furnished apartments found to be in violation of the commission’s pricing regulations during the summer season.

Due to turmoil in neighboring Arab countries, many Saudis are choosing to spend the summer in the Kingdom this year and as a result, hotels, furnished apartments and resorts are seeing occupancy rates of nearly 100 percent. As a result, hotels and furnished apartments have raised their prices, prompting many domestic tourists to complain to the commission over what they say are unfair pricing practices.

Abdul Latif Al-Bunian, Executive Director for the SCTA in the Eastern Province, told a local daily that the SCTA has a list of all of the hotels, furnished apartments and resorts in the Eastern Province and is monitoring their prices.

“These prices were fixed for the summer months and those who do not comply with the SCTA’s directives and regulations will be fined SR1000 for the first offense. This will be multiplied for every offense until it reaches SR10,000 at which point we will close the establishment and indefinitely suspend its license,” he said.

Manuel Livonian, the general manager of a resort on Alkhobar’s famous Half-Moon Beach Resort, said the province had seen an influx of domestic tourists mainly from Riyadh, Al-Qassim and some neighboring Gulf states but denied that hotels were over charging customers.

“Despite the numerous discounts and packages we offer, we’re in a state of recession 9 months out of the year. However, tourists have really poured in this year and we have an occupancy rate of 95 percent. Our prices have only increased slightly.

For example, before the summer season began the price of a room was SR1400. It’s SR1750 now. Similarly, the price of two rooms is SR2800, slightly above the previous rate of SR2300,” said Livonian.

Khalid Arfaj, chairman of a well-known hotel, said average prices rose in the Eastern Province rose by 30 percent with Alkhobar being the cheapest due to ample supply and Dammam the most expensive.

“Prices in Alkhobar have only increased slightly whereas Dammam has seen the steepest price increases. The SCTA has given hoteliers a ceiling that is SR100 above the average price but some business are still greedy. If they continue to overcharge people, less people will come back next year,” he said.

Anyone who has a complaint on a price violation is urged to call the SCTA’s toll-free number 800-755-0000.