JEDDAH: Economists believe the decisions of the Cabinet to amend the fees collected through some systems represent a new step toward increasing the revenues of the state and diversifying sources of its income.
Thus, they explained, the state will be able to develop infrastructure and increase its spending. They pointed out that the Kingdom, with its bearing the fees for performing Haj and Umrah for the first time, is a clear indication of the humanitarian role it assumed since its establishment, a local publication reported.
They explained that raising the fees will attract financial returns to the treasury, and will help in eliminating certain behaviors of citizens who recruit non-useful labor. Fees collected from every person leaving the Kingdom, through its airports, are considered as the lawful right of the state to add extra income to its treasury.
Mohammad Al-Qahtani, an international management professor at King Faisal University and economic analyst, said the decision to amend the fees contained in a number of systems such as visas would increase the revenues for the Kingdom and compensate for the decline in global oil prices.
“About 10 million tourists and pilgrims enter the Kingdom each year and the aim now is to raise the figure to 30 million, and this will materialize as accumulated revenues resulting from the fees collected,” he explained.
He demanded that any new revenues collected be spent on sectors facing economic recession as a result of low oil prices.
“The decisions represent a new step toward working out and increasing other possible nonoil income sources and reducing reliance on the oil sector. The requires the support of small and medium enterprises to support young people and help them discover their talents and abilities, and reduce their dependence on government support as well as breaking the psychological phobia toward working in the private sector in terms of the lack of job security,” he added.
Mohammad Al-Saqr, a member of the business council at the Council of Saudi Chambers, said the decision to raise revenues from the visa fees is regarded as an economic justification because of the declining oil prices and the expectations of future budget deficits.
He explained that when the Kingdom bears the fees for first-time entry to perform Haj and Umrah, it clearly indicates the humanitarian role the country assumed in this regard.
Economist Mohammad Al-Swaid said the decision of the Cabinet to raise municipal fees, and those of visas, comes to keep pace with the general direction of the government to diversify income sources and its investments.
“This is a practice applicable in every country, and although it is not clear yet about its impact on the economy and the private sector, it still remains very important until the whole domestic tourism sector is organized and regulated,” he added.
Said Al-Shaikh, chief economist at the National Commercial Bank, said the steps approved by the Cabinet to amend the fees in a number of systems are described as an operational step aimed at increasing non-oil revenues.
“The decisions to amend the fees for visas, traffic violations, and for municipal services related to the advertising boards were preceded by a number of previous initiatives such as the removal of subsidies on certain sectors, and also raising the tariffs of water and electricity,” he added.
Al-Shaikh said these new sources of income will enable the state to develop the various infrastructures and increase the efficiency of spending, which will be reflected on the economic activity and the creation of more jobs.
“Most importantly, raising the visa fees will significantly impact the costs of recruiting foreign labor and will be positively reflected on the efforts for Saudizing jobs,” he added.
Thus, they explained, the state will be able to develop infrastructure and increase its spending. They pointed out that the Kingdom, with its bearing the fees for performing Haj and Umrah for the first time, is a clear indication of the humanitarian role it assumed since its establishment, a local publication reported.
They explained that raising the fees will attract financial returns to the treasury, and will help in eliminating certain behaviors of citizens who recruit non-useful labor. Fees collected from every person leaving the Kingdom, through its airports, are considered as the lawful right of the state to add extra income to its treasury.
Mohammad Al-Qahtani, an international management professor at King Faisal University and economic analyst, said the decision to amend the fees contained in a number of systems such as visas would increase the revenues for the Kingdom and compensate for the decline in global oil prices.
“About 10 million tourists and pilgrims enter the Kingdom each year and the aim now is to raise the figure to 30 million, and this will materialize as accumulated revenues resulting from the fees collected,” he explained.
He demanded that any new revenues collected be spent on sectors facing economic recession as a result of low oil prices.
“The decisions represent a new step toward working out and increasing other possible nonoil income sources and reducing reliance on the oil sector. The requires the support of small and medium enterprises to support young people and help them discover their talents and abilities, and reduce their dependence on government support as well as breaking the psychological phobia toward working in the private sector in terms of the lack of job security,” he added.
Mohammad Al-Saqr, a member of the business council at the Council of Saudi Chambers, said the decision to raise revenues from the visa fees is regarded as an economic justification because of the declining oil prices and the expectations of future budget deficits.
He explained that when the Kingdom bears the fees for first-time entry to perform Haj and Umrah, it clearly indicates the humanitarian role the country assumed in this regard.
Economist Mohammad Al-Swaid said the decision of the Cabinet to raise municipal fees, and those of visas, comes to keep pace with the general direction of the government to diversify income sources and its investments.
“This is a practice applicable in every country, and although it is not clear yet about its impact on the economy and the private sector, it still remains very important until the whole domestic tourism sector is organized and regulated,” he added.
Said Al-Shaikh, chief economist at the National Commercial Bank, said the steps approved by the Cabinet to amend the fees in a number of systems are described as an operational step aimed at increasing non-oil revenues.
“The decisions to amend the fees for visas, traffic violations, and for municipal services related to the advertising boards were preceded by a number of previous initiatives such as the removal of subsidies on certain sectors, and also raising the tariffs of water and electricity,” he added.
Al-Shaikh said these new sources of income will enable the state to develop the various infrastructures and increase the efficiency of spending, which will be reflected on the economic activity and the creation of more jobs.
“Most importantly, raising the visa fees will significantly impact the costs of recruiting foreign labor and will be positively reflected on the efforts for Saudizing jobs,” he added.
