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TRAVEL & TOURISM JULY 31, 2026 | The Indian Eye 41

Japan to End Instant Tax-Free UAE to establish

Food Cluster in
Shopping for Tourists Andhra Pradesh

apan will overhaul its popular AE Minister of Economy and
tax-free shopping scheme for Tourism Abdulla Bin Touq Al
Jforeign tourists from Novem- UMarri met Andhra Pradesh
ber 1, 2026, replacing the current Chief Minister N. Chandrababu
instant tax exemption at stores with Naidu at the State Secretariat. Ac-
a refund-based system processed at cording to the release, the UAE dele-
airports and seaports before depar- gation held discussions with the Chief
ture. The move is part of the coun- Minister on setting up the UAE Food
try’s broader efforts to streamline Cluster in Andhra Pradesh.
procedures and curb misuse of the During Chief Minister Chan-
tax-free shopping programme while drababu Naidu’s Davos visit earlier
managing record levels of interna- this year, the UAE had expressed its
tional tourism. willingness to establish the Food Clus-
Under the existing system, eli- ter in the state.
gible foreign visitors can purchase The UAE has decided to develop
goods worth at least ¥5,000 at desig- a value chain for the food processing
nated tax-free stores and receive an sector in Andhra Pradesh. A partner-
immediate exemption from Japan’s ship has been established between the
10% consumption tax by presenting Andhra Pradesh Government and the
their passport. United Arab Emirates for the project.
plify the process by eliminating sev- prompting authorities to introduce The value chain will facilitate the
Beginning in November 2026, eral existing restrictions. The dis- measures aimed at managing over- export of horticultural produce, includ-
tinction between consumable items
tourism and strengthening tourism
ing mangoes, bananas, cocoa, and oth-
however, travellers will be re- and general goods will be removed, infrastructure. Officials maintain er products, to international markets.
The meeting was attended by the
quired to pay the full tax-in- spending caps on consumables will that the tax benefit itself remains UAE delegation, Andhra Pradesh
unchanged, with only the refund pro-
be abolished, and the requirement
clusive price at the time of for special sealed packaging will end. cess being modified. Minister TG Bharath, and senior of-
Travel experts believe the re-
purchase and claim a refund Purchases will remain eligible for re- vised system may add an extra step ficials from the Food Processing De-
funds if they total at least ¥5,000 per
partment, Industries Department,
only after customs verification store per day and are taken out of Ja- for visitors but is unlikely to dampen and the Economic Development
when leaving the country. pan within 90 days. Japan’s appeal as a shopping destina- Board (EDB).
The changes come as Japan tion, given the continued availability In month of January, Chandraba-
grapples with a tourism boom. The of the tax refund and the country’s bu Naidu visited Switzerland to attend
Japanese authorities say the country welcomed a record 42.7 mil- enduring popularity among interna- the World Economic Forum in Davos.
revised “Refund Method” will sim- lion international visitors in 2025, tional travellers. Andhra Pradesh Chief Minister
Chandrababu Naidu’s four-day tour
to Davos, Switzerland, involved in-
EU Unveils New Guidelines to Promote Sustainable Tourism teracting with several global leaders
and inviting investments in the state
by showcasing its favourable business
he European Commission has rural, coastal and mountainous re- attract visitors, creating a “conserva- environment.
released new guidelines aimed gions. tion paradox” where growing tourism During his visit, CM Naidu met
Tat strengthening sustainable The Commission said the frame- can threaten the very ecosystems that with top executives of 15 prominent
tourism across the Natura 2000 Net- work will help site managers and na- draw travellers. The new recommen- global companies, showcasing Andhra
work, seeking to balance economic tional authorities integrate tourism dations aim to address this challenge Pradesh’s favourable business envi-
growth with biodiversity conservation planning with conservation objec- by promoting long-term planning, ronment and policies.
in more than 27,000 protected sites tives. It recommends assessing visitor monitoring visitor flows and ensuring He invited them to invest in the
spread across the European Union. pressure, determining the ecological tourism development remains com- state and explore opportunities in var-
The guidelines position the carrying capacity of destinations, im- patible with habitat restoration and ious sectors such as pharmaceuticals,
world’s largest network of protected proving visitor awareness and im- species protection goals. medical devices, technical textiles,
areas as a key driver of Europe’s tour- plementing management measures The initiative aligns with the Eu- and rail components, the CMO re-
ism economy while ensuring that sen- that minimise environmental impacts ropean Union’s broader strategy to lease stated.
sitive ecosystems, habitats and wildlife while supporting local communities. build a resilient, competitive and envi- The World Economic Forum
remain safeguarded. Tourism contrib- The guidance also places renewed ronmentally responsible tourism sec- (WEF) convened 56th Annual Meet-
utes approximately €807 billion to the emphasis on ecotourism, encourag- tor. By encouraging sustainable desti- ing in Davos from January 19 to January
EU economy and supports over 20 ing responsible travel practices that nation management, the Commission 23, 2026, bringing together nearly 3,000
million jobs, with Natura 2000 desti- conserve nature and create socio-eco- hopes the Natura 2000 Network will leaders from more than 130 countries
nations alone generating an estimated nomic benefits for residents. continue to support regional econo- at a moment of heightened geopoliti-
€50–85 billion annually and sustaining Officials noted that well-pre- mies while preserving Europe’s rich cal tension, economic uncertainty and
up to two million jobs, particularly in served natural landscapes increasingly natural heritage for future generations. rapid technological transformation.

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