Data protection compliance in the hospitality, entertainment and sports sectors

The hospitality, entertainment, and sports industries frequently handle sensitive customer information. Zeeshan Salahuddin and Ajit Khushwaha from Ecovis Al Sabti outline how the Saudi Personal Data Protection Law safeguards the security and privacy of this data, and what is needed to achieve compliance.

The Saudi Personal Data Protection Law (PDPL) is a regulation that governs the collection, processing, and protection of personal data to ensure privacy and security for individuals in Saudi Arabia.

The PDPL is especially crucial for the hospitality, entertainment, and sports sectors as it governs how personal data is collected, processed, and protected. Compliance with the PDPL ensures that businesses prioritize customer privacy, building trust and enhancing their reputation.

By following the PDPL, organizations not only safeguard customer trust but also avoid potential legal penalties for non-compliance. This creates a more secure and transparent environment for both businesses and their customers.

Hospitality sector

Hotels, resorts, and other hospitality businesses collect large volumes of personal data, such as guest preferences, booking details, payment information, and sometimes even sensitive data like dietary or health preferences. PDPL requires such data to be handled with explicit consent before collecting or processing, ensures data security, and provide individuals with the right to access or delete their information.

Personal Data Collection
Many hospitality businesses work with third-party vendors for services like booking platforms, marketing, and customer service. The PDPL requires that data sharing with third parties is done in compliance with strict rules, including obtaining customer consent.

Data Sharing
Global hotel chains operating in Saudi Arabia must ensure that customer data transfers to headquarters or regional offices outside the Kingdom meet the PDPL’s stringent data transfer requirements.

Cross-Border
Transfers Global hotel chains operating in Saudi Arabia must ensure that customer data transfers to headquarters or regional offices outside the Kingdom meet the PDPL’s stringent data transfer requirements.

Entertainment sector
Companies in the entertainment sector, such as tv, media, and online music and streaming platforms, are relatively advanced in using data for data-driven decisions, including in areas such as consumer preferences, viewing habits and programming preferences.

Ticketing & Customer Data
Entertainment companies handling events or online platforms collect personal data for ticket purchases, membership, and subscriptions.

Personalized Marketing
Entertainment companies often use data to deliver personalized content or targeted marketing. The PDPL places limits on how this data can be used, especially if it involves tracking user preferences or behavioral data without their consent.

Data Security
Large entertainment platforms are frequent targets for cyberattacks due to the high volume of personal data they store. PDPL requires that they take robust measures to safeguard this data and report any data breaches promptly.

Sports sector

Sports groups use data for shaping the consumer experience and fan experience, as well as for monetizing commercial opportunities.

Athlete & Fan Data
Data on athletes, team personnel, and fans, including performance data, health records, and fan engagement data. Teams and leagues must now ensure that this information is handled in compliance with the PDPL’s regulations, particularly when it comes to sensitive personal data like health information.

Fan Loyality Programs
Loyalty programs that collect personal data. These programs will need to be carefully reviewed to ensure compliance, particularly around consent and data minimization.

Event Management
When organizing large-scale events (such as sports tournaments), there is often collaboration with ticketing companies, sponsors, and broadcasters. PDPL ensures that all parties involved in handling participant data comply with privacy rules.

Strategies for compliance

To comply with the PDPL, organizations in the hospitality, entertainment, and sports sectors should consider the following:

• Data Audits of all personal data collected, stored, and shared.
• Review Contracts with Third Parties to ensure that third-party agreements comply with the PDPL, particularly when it comes to cross-border transfers and data-sharing responsibilities.
• Strengthen Cybersecurity Measures and implement strong encryption, secure access control, and regular vulnerability assessments to safeguard customer data.
• Training and Awareness to staff to ensure they understand the PDPL’s requirements, particularly around data handling and customer interactions.
• Privacy Policies explaining how data is collected, used, and shared.
• Incident Response Plan for responding to data breaches, including notifying authorities and affected individuals within the required timeframes.

Ecovis Al Sabti is a consulting firm with offices in Riyadh, Jeddah, Khobar, and Manama. The firm is one of the Middle East’s leading players in the area of data risk & protection.