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The article focused on the challenges of regulating the tourism sector in Saudi Arabia and how to achieve a balance between service quality, stimulating investment, and providing a variety of accommodation options to meet the needs of all segments. It reviewed experiences of institutions and individuals who faced regulatory restrictions that led to financial losses and negatively affected domestic tourism, especially in the areas of tourist housing and stays in Mecca and Riyadh. The article proposed developing a unified national platform to classify and streamline procedures for small establishments, along with supporting diversity in housing choices between luxury and budget options. The goal is to enhance service standards, attract more citizens and visitors, and achieve sustainable tourism development.
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