The importance of tourism is undeniable for economy of UAE. It is one of the most important revenue-generating sectors in several emirates of UAE especially Dubai and Abu Dhabi. These and other emirates have made special structures, entertainment places to attract tourists from various parts of world.
Along with that, best medical and educational facilities at comparatively lower rates are also available in the country that is boasting medical and educational tourism in UAE also. With the addition of AED 154.1 billion in UAE’s economy, tourism sector is contributing 11.3% GDP of UAE in 2017.
After adopting the new policy of reduction of its reliance on oil sector, all the other emirates of UAE are also working to promote tourism sector. Therefore, it is utmost importance for UAE to reduce the issues related to tourism in UAE.
Previously, UAE removed few sectors from paying VAT (value added tax) in order to support them. A similar decision is also recently taken by UAE in order to decrease problems of tourists and tourism sector.
According to details, UAE cabinet has approved the introduction of VAT refund system for tourists. This system will start functioning in 4th quarter of 2018. Under this system, non-resident tourists can receive refund VAT on purchasing of goods that are not exempted from tax system. This refund will be available through refund outlets. The government said that this step will place UAE in line with international standards.
This latest move is widely welcome by tourism authorities, businesses related to tourism sector and retailers in all the emirates. There is a consensus among masses that this is very good news for tourists and all types of businesses as millions of tourists visit UAE every year and contribute to business activities. Only in 2017, around 16 million people visited Dubai only.
This latest decision is beneficial not only for tourists from around the world but also for various types of businesses that are directly or indirectly related to tourism activities. It will result in growth of already existing businesses and encourage new companies to start their business activities in all the emirates of UAE. Apart from tourism industry, this decision will also prove beneficial for entertainment industry, medical industry, events management, retailers etc. It means the overall business activity will get a boost with this new decision.