Hospitality & Tourism Accounting & Advisory Saudi Arabia

Hospitality & Tourism Financial Compliance in Saudi Arabia

Our Hospitality & Tourism sector clients include hotels and resorts, restaurant groups, tour operators, entertainment venues, and travel agencies. These businesses require financial advisors who understand not just general accounting standards, but the specific ZATCA treatment, sector regulatory requirements, and Vision 2030 compliance obligations that apply to their industry.

Saudi Arabia's hospitality sector is one of the most exciting — and most VAT-complex — in the Kingdom. Vision 2030's target of 100 million tourists annually by 2030 is driving massive investment in hotels, resorts, entertainment, and F&B. But hospitality businesses face unique financial management challenges:

• Revenue management vs VAT: Hotels charge 15% VAT on room rates, F&B, and most ancillary services. But corporate rate agreements, loyalty programme redemptions, complimentary upgrades, and no-show revenue all have different VAT treatments. Incorrect VAT on hospitality revenue is a common ZATCA finding.
• Food cost and waste management: F&B operations need daily food cost tracking, recipe costing, and wastage reporting to maintain target gross margins. Without a proper cost accounting system, F&B P&L is meaningless — and ZATCA input VAT claims on food purchases may be understated.
• Vision 2030 programme compliance: Hospitality businesses benefiting from Tourism Development Fund (TDF) incentives, Diriyah or other giga-project supply contracts, or SCTA licences have additional reporting and compliance obligations tied to their licences.