The Saudi Commission for Tourism and Antiquities (SCTA) has begun monitoring time-share establishments after receiving complaints that some companies exploit this service to cheat the beneficiaries. Time-share is a practice of sharing a piece of real estate, such as a condominium, apartment, or house, with other owners. Typically, a buyer will purchase a particular block of time for a vacation during which the buyer will have exclusive use of the property. In return, the buyer must pay his share of annual maintenance charges, whether he uses the property or not. Muhammad Al-Siddiqi, SCTA Senior Advisor for Licenses and Quality Administration, said that implementation of the time-share system on real estate units would lead to developing tourism in the Kingdom, contribute to developing and expanding the tourism sector, and encourage investments. He confirmed that the system would guarantee the contracts of tourism companies and prevent the entry of violators and exploiters under the pretext of promoting tourism in the country. Also, it would tighten the noose around violators especially since there are fines of up to SR500,000 for particular violations. He pointed out that the commission is monitoring those engaged in the time-share system in an illegal way and will impose on them penalties mentioned in the regulations approved by the Council of Ministers. The penalties include a fine or the cancellation of license or both in case of any tampering with the official contract with clients. Al-Siddiqi said the commission has the right to inspect, monitor and supervise any company engaged in the time-share business in order to determine if there are any violations and, if so, refer them to the appropriate committee to decide the suitable penalties. The decisions of this committee would be approved by the chairman of the commission as stipulated by the regulations. He expected this would put an end to violations by those licensed to engage in the time-share business. Moreover, it would protect those who sign timeshare contracts.
