Azerbaijan, Baku, August 20 / Trend /
Leyla Abdullayeva, expert of Trend analytic center
Adopting the package of proposals to exempt Azerbaijani tourist agencies from VAT payment, which was prepared by the Association of Travel Agencies of Azerbaijan, could provide a significant contribution to the promotion of tourism business in the country. Exempting travel agencies from VAT or at least decreasing it would ensure further development of tourism in the country, which was identified as a priority within the strategy of non-oil development of the country.
Despite that over the recent period, the government has done a lot of work, approved a lot of programs for its development, approved standards on tourism and excursion services, Azerbaijan is still somewhat lagging behind.
Because of the existing taxes, energy prices, transportation and other services, the prices for stays in the tourism facilities and the hotel exceed the cost of similar holiday in Turkey, Bulgaria, Egypt, Cyprus, Greece and several other countries. It is therefore necessary to pay particular attention to this issue and improve service for all necessary items.
Practically the entire world has long ago understood that the entrance and internal tourism is a powerful lever for development of hotel and restaurant, transport and cultural spheres, roads, railways, river, sea, railway stations and airports, it is creating millions of new jobs.
Comparing taxation of Azerbaijan, where the travel agencies pay 18 percent VAT, it is drastically different from Europe and Asia. In Europe, VAT on travel agencies is 5-10 percent, while in countries such as Georgia, Kazakhstan, they are exempt from this tax. Russia also plans to exempt the operators of domestic and inbound tourism from VAT.
Considering Azerbaijan's unique tourism opportunities, national colors, rapidly growing infrastructure and wildlife nature fascinating even experienced travelers, this sphere still needs the support of the government. Here it is possible to use unlimited possibilities, develop new directions in the industry, which now has become particularly popular amongst foreign visitors - tourism such as adventure tourism - rafting, mountain tour, hiking in the mountains, tours on horseback and camel, so-called eco-tourism, one of the most perspective types - youth tourism and many others.
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