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International governments offering tax breaks to travellers

Posted on Friday 17 February 2012 in Australia, Ireland, Thailand, Dublin

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The tourism industry can be an important asset to a country's economy that provides jobs and revenue for residents involved in the trade - Dublin Travel News

The tourism industry can be an important asset to a country's economy that provides jobs and revenue for residents involved in the trade. Aussies may have noticed this as well in their own major cities, such as when they take flights to Sydney or indulge in Adelaide holiday packages. Government officials have noticed worldwide that the economic trends are leaning toward travel becoming more popular than ever. In order to keep this industry viable, some officials have been looking for ways to encourage holiday trips, short breaks and both domestic and international travel by providing tax breaks.

Ireland is one of the first to pave the way in using this type of incentive. Looking forward to the 2012 Summer Olympics in London, government representatives and those in tourism are offering visitors a lower VAT rate, reduced from 13.5 per cent to 9 per cent. This could be especially beneficial to those planning on dining out, shopping or visiting the country's attractions and famous landmarks. Travellers may see the reductions in airline fees and taxes as well, which means tourists may have more funds for a Dublin car hire or other luxuries after they have saved on cuisine and flights. Ireland plans on having an influx of visitors during the Olympics and hopes that the program will allow even more guests to look into extending their U.K. holiday over the summer.

Thailand is another country that has introduced tax reductions for airlines so that they may offer more routes and options at lower rates. According to Prokerala News, the country's tourism board sees that major cities like Bangkok and Pattaya are receiving plenty of traffic, but other places such as Phuket are still lagging behind. Officials say they hope travellers will head straight to these alternative destinations, like Phuket, and make their stays longer to spread out the spending and eventually improve regional economies.

Alongside the idea of tax breaks, Thailand has presented some other unique solutions that will benefit the national tourism industry. For instance, Aussie travellers who are concerned about their cell phone use internationally need not worry when journeying to Thailand. Several airlines will give their passengers complimentary SIM cards to use in their phones while they are abroad, easing anxiety about staying connected in a new locale. Paired with the tax breaks, both of these ideas have been received positively by airlines and tourists alike.

Back in Australia, several businesses involved in tourism are asking the federal government for additional breaks in taxes so they may invest in new projects for the future, reports the Sydney Morning Herald. Officials would especially like to entice local travellers to stay at hotels, take domestic flights and visit the cultural landmarks throughout the country. Some say they hope the tax breaks could improve nationwide offerings and amp up things like new hotels, tourism ventures and more.

Aussies who frequently take trips within the country and around the world may save a lot of money when it comes to these new tax initiatives that they can utilise on their holiday. Not only can sales tax cuts assist tourists, but the additional revenue from other programs that reduce taxes for businesses can benefit guests as well. All of these programs aim to connect the global economy even more and make travel options exciting and easy for those who wish to explore new destinations in the future.

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