JEDDAH: It’s no doubt that the summer holiday is the most opportune time for travel abroad. Many save large portions of their salaries all year hoping to travel to far off destinations in the West or Asia for only a few weeks. Those unable to afford such lavish destinations choose to book within the region in places such as Egypt, Jordan, Lebanon, or the UAE.
Despite being cheaper than most destinations and conveniently located closer to home, some Saudis have voiced their opinions about the unfairness that they as tourists abroad are required to pay outrageous tourism taxes on everything from hotels, automobile rentals to popular attractions. “When nationals from the region come to Saudi Arabia they pay the flat rate for accommodations, and other services just as nationals do. However, when we travel to their country we are required to pay so much more above regular retail prices,” said Riyan Abdelkareem, a 38-year-old Saudi who travels to Egypt frequently for diving trips.
“I have also found some taxes and extra fees at entrances of shopping malls and amusement parks that is all associated with having tourists to pay a higher rate than residents of certain countries,” said Malika, a Saudi mother of two who is currently visiting Jordan and the UAE.
“I think since the Saudi Commission of Tourism and Antiquities (SCTA) is looking to develop tourism further in our country they should also implement a tourism tax system to fund such projects,” Abdelkareem opined.
However, currently implemented by the SCTA for the purpose of funding tourism projects and development is the “Vision 2020” plan established in 2002. Under the plan, the SCTA in cooperation with other governmental and non-governmental organizations such as the Ministry of Commerce and Industry and the Saudi Arabia General Investment Authority (SAGIA) is working to recruit international and local corporations and individuals to invest in projects that will improve and boost the local travel and tourism sector.
Meanwhile, other countries in the region have been funding their nation’s tourism development by charging anywhere from 5 to 10 percent in added taxes.
Abu Dhabi tourism officials have also levied a tax of six percent on the profit of tourist activities. But what do SCTA officials and others in the tourism industry think? Do they feel implementing a tourism tax in Saudi Arabia would be a good move?
Syed Ishaq Quadri, e-marketing executive at Le Meridien Hotel in Jeddah said he is aware that the SCTA had recently launched a widespread advertising campaign and had highlighted the fact that Saudi Arabia is one of the only countries in the region which is tax-free
“In my view, the best way of both boosting tourism in the country as well as provide revenue for future development is to keep Saudi Arabia a tax-free destination,” Quadri told Arab News. “The most popular attraction we currently have is religious tourism for Haj and Umrah and the government cannot tax this because visiting the holy sites is a right every Muslim has without added financial burden. For this reason, I think that the SCTA should keep its strategy the same by enticing investors to the Kingdom,” he said.
“More important than the issue of taxes, I think if the government focuses on making it easier for foreigners to vacation here as well as business persons to be able to participate in investment opportunities in the Kingdom it would be more positive than simply levying a tax on visitors,” he said.
