Islamabad, Nov 28: Saudi Arabia plans to launch a value-added tax (VAT) refund system for tourists next year, aiming to attract more international visitors. The initiative, overseen by the Saudi Zakat, Tax, and Customs Authority, seeks to simplify tax compliance and enhance the shopping experience for tourists, making the kingdom a more appealing destination.
Tourism Growth Goals
- Target Visitors: Saudi Arabia aims to welcome 127 million visitors by 2025.
- Projected Revenue: Tourism revenues are expected to reach SR346.6 billion, boosting non-oil income and driving private sector growth.
Boosting Tourism Appeal
The VAT refund system will allow foreign tourists to reclaim taxes on purchases during their stay, fostering a positive shopping experience and increasing tourism spending.
Recent Tourism Initiatives
- Tourist Visas: Introduced in 2019, with streamlined visa-on-arrival and online applications.
- Transit Visas: Launched in 2022, allowing a four-day visit for Umrah, Medina, and cultural events.
- Record-Breaking Visitors: Over 100 million tourists visited in 2023, including 77 million domestic and 27 million international travelers, meeting annual tourism targets.
Saudi Arabia is working to secure a spot among the world’s top 10 tourist destinations, further solidifying its position as a hub for cultural and religious tourism.
