Owners of hotels and furnished apartments are up in arms against the Jeddah Municipality for the “lengthy procedures related to completing their applications besides inordinate delays in sanctioning approvals.”

Their list of complaints includes delays in renewal of existing licenses, lengthy procedures involved while applying for new ones or changing the property from residential to furnished apartments.

They said these procedures take months, sometimes stretching up to 16 months, which affect their business and complicate completion of their projects.

Hatem Al-Shahri, member of the hotel and furnished apartment committee in the Jeddah Chamber of Commerce and Industry, said licenses and approvals are not completed by the Jeddah Municipality for months despite regular follow-up.

“I came to the municipality eight months ago to open a new branch of residential apartments, but I haven’t received the permit yet. I can’t find any justification for this delay that affects our business and the development of our projects,” he added. He said the complicated procedures involved is a discouraging factor for people from expanding and developing their businesses, because people are vexed with the municipality’s red tape and its boring routine.

An investor in the hotel and apartment sector said Jeddah Municipality was responsible for stalling many projects in the sector because of its difficult, complicated and unjustified procedures.

“The license is issued after months of follow-up, and final and completed documents that only need a simple signature take up to three weeks. Those who have to sign don’t care about people’s interests. Hoteliers manage millions of riyals and our losses start the day our projects are finished,” he said.

He stressed that each day a small project is delayed, it loses a minimum of SR10,000 to SR 50,000. “Documents that are ready and need to be delivered by the municipality to the Saudi Commission for Tourism and Antiquities take one whole month. We haven’t filed any complaint because the situation is hopeless and there seems to be no change in sight,” he added.

Jeddah Municipality officials, however, counter the allegations stating that the delays in renewing and issuing new licenses was the result of lack of commitment shown by proprietors of hotels and furnished apartments toward the rules and regulations laid down by the municipality. Abdulaziz Al-Ghamidi, official spokesman for the municipality, said: “If all conditions are met, we will complete their documents within 24 hours.”

Stressing the fact that automated licensing system had been activated, he said: “The municipality doesn’t require changing the license from residential to furnished apartments. This request comes from the proprietor of the establishment.”

He said the municipality will not be lenient toward anyone on the issue of providing parking space for all tenants.