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According to the 2025 fiscal year budget, Saudi Arabia will introduce a VAT refund system for tourists in 2025, Wego reports. Managed by the Zakat, Tax, and Customs Authority, the system aims to simplify tax processes and enhance the travel experience.
The VAT refund initiative is part of Saudi Arabia’s broader tourism strategy, which seeks to attract 127 million visitors by the end of 2025. The National Tourism Strategy focuses on expanding both domestic and international tourism, reinforcing the Kingdom’s status as a global tourism hub.
Tourism spending is projected to reach SAR 346.6 billion by 2025, contributing significantly to non-oil revenues and economic growth. In 2023, Saudi Arabia surpassed its Vision 2030 target by welcoming 104 million visitors, including 27 million international tourists, demonstrating the growing appeal of the Kingdom.
Saudi Arabia aims to attract 119.6 million tourists by the end of 2024, with tourism spending expected to hit SAR 304 billion. Investment in the sector has been strong, with SAR 8 billion secured by August 2024, projected to rise to SAR 15 billion by year-end, further driving economic diversification beyond oil.
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Source: blog.wego.com