Saudi Arabia will introduce a VAT refund system for tourists next year. The Saudi Zakat, Tax, and Customs Authority will oversee the process. Ultimately, this move aims to simplify tax refunds, making it easier for visitors to reclaim VAT. As a result, it is expected to attract more international tourists.
Tourism Goals
The kingdom plans to welcome 127 million visitors by 2025. Moreover, it expects tourism revenues to reach SR346.6 billion. This growth will significantly boost the economy and increase non-oil income. Furthermore, it will drive demand for private sector services, creating more opportunities for businesses.
Tourists will be able to reclaim VAT paid on purchases during their stay. Consequently, this system will not only make shopping more attractive but also enhance the overall travel experience.
Key Tourism Initiatives
Saudi Arabia has already launched several measures to boost tourism:
- In 2019, it introduced a tourist visa system. As a result, travelers from many countries can now apply for visas online or upon arrival.
- In 2022, the kingdom launched a four-day transit visa. This allows visitors to perform Umrah, visit the Prophet’s Mosque, and explore cultural events across Saudi Arabia.
- In 2023, Saudi Arabia reached a significant milestone, recording over 100 million visitors. This number included 77 million domestic tourists and 27 million international travelers.
Building Global Appeal
Saudi Arabia is committed to becoming one of the top 10 global tourist destinations. It continues to focus on cultural and religious tourism, positioning itself as a hub for both. With these ongoing efforts, the kingdom is steadily becoming a key player in the global travel industry.
