JEDDAH, 3 June 2007 — Interior Minister Prince Naif, who is also chairman of the Supreme Commission for Tourism (SCT), has approved the executive bylaw for time-share system in tourism-related real estate projects, according to Prince Sultan ibn Salman, SCT’s secretary-general.
“The approval of the bylaw denotes the actual beginning of the system,” Sultan said, adding that the time-share system would contribute to strengthening the Kingdom’s tourism industry.
The SCT chief believed that the new system would encourage investment in furnished apartments, tourist resorts and other related projects in different parts of the Kingdom. “It will also lead to promoting domestic tourism throughout the year as it will ensure occupation of housing units in all weeks of the year. It will also reduce housing rents and create new job opportunities.”
Companies marketing these time-share units will also benefit, the prince said. The new system allows people to purchase shares of real estate units in a tourist resort for a particular period of time in a year on the basis of an agreement.
The executive bylaw sets the conditions for receiving licenses for running time-share real estate projects and for marketing such units within the Kingdom and abroad. The law protects the rights of those purchasing shares for the purpose. A space-share system has already been introduced in the holy cities of Makkah and Madinah for pilgrims from different parts of the world to have suitable housing. By purchasing a fixed space and time in a year the owner ensures allocation in Makkah or Madinah at the time that suits him.
Sultan hoped that the time-share system would encourage investment in tourism real estate projects. “The new law will prevent illegal practice in the field,” he said, adding that the SCT would implement the law with utmost care to protect investors.
Sultan also spoke about the efforts made by the commission to set out a sound-proof time-share system. “The time-share law was drafted in the light of successful global experiments in the field,” he added.
The commission had conducted a number of workshops with the participation of private sector representatives for the purpose. “We have also sent the law to experts in other countries including the World Tourism Organization for review,” he added.
The SCT chief disclosed plans to introduce a series of new rules and regulations to develop the industry on a sound basis, visualizing its future requirements.