Dubai has long enjoyed the status of being tax-free and it has always been a hot spot of tourist attraction in the Middle East. Dubai implemented Value Added Tax or VAT at the behest of GCC countries aiming to diversify their economy and driving away from being oil driven. But it was never oil that ignited the aspirations of Dubai, it was the grit to stand apart from rest of the world.
In the last three decades Dubai has developed infrastructural marvels, iconic landmarks and shopping paradises enticing people from around the globe to visit Dubai; especially from India for work and leisure alike. One of the busiest international air routes last year was Mumbai-Dubai and Delhi-Dubai to-and-fro flying around 5 crore international travellers via Dubai with a majority of 1.8 crores flying between India and UAE alone.
Destination Dubai
Dubai has been the most popular destination for foreign visitors. The Master Card Destination Cities Index 2017 gives very interesting figures to substantiate the same. Dubai remains one among top destinations cities in the world along with Bangkok, London and Paris with the highest overnight international visitor spending globally of US $ 28.5 billion. The Index indicates further insights like 10.8% of the visits were for business while 89.2% was leisure related. The breakdown of the expenditure by these international visitors were 29% in accommodation, 22% in F&B, 31% in Shopping and 18% in local services/transport. This pretty much explains why hospitality, travel and tourism sector contribute significantly to the overall GDP of Dubai.
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