Should Dubai’s Progressive Policy Be Emulated?

Dubai has suspended a tax of 30% on alcohol and dropped a licence fee previously needed to buy alcohol in the commercial and tourism hub. The move is expected to further boost the appeal of Dubai to tourists and expatriate residents drawn by its more liberal lifestyle, compared to other Gulf cities. The changes took effect for a trial period of a year. But prices would remain subject to a 5% value added tax (VAT).

Dubai's economy has rebounded swiftly from the COVID-19 pandemic, with GDP growing 4.6% on the year for the first nine months of 2022. Tourism is a key pillar of the economy, and tourist numbers grew more than 180% in the first half of 2022 over the corresponding 2021 period.

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While the United Arab Emirates does not impose income tax, it will introduce a 9% corporate tax from June on profits exceeding 375,000 dirhams ($102,100). The first casino in the Gulf, where Islamic rules have long kept gambling off limits, is expected to open in the emirate of Ras Al Khaimah in 2026, at a resort being built and operated by Wynn Resorts. 

Meanwhile, in Malaysia, the tourism industry has been rattled by Kedah’s PAS-led state government suggesting that the sale of alcohol would be controlled on the resort island of Langkawi. This follows its move to shut down gaming outlets in the state. The Kedah chapter of the Malaysian Association of Hotels (MAH) is hoping for clarification over the remarks linked to Kedah Menteri Besar Datuk Seri Muhammad Sanusi Md Nor. The chapter hopes to discuss the matter with the state to ensure a win-win status can emerge in the new year for the tourism industry.

All countries have their tourism assets, but as long as it is not done immorally to an extent it becomes a social ill, tourism should be allowed to flourish as it generates income for the people and the authorities.

The surprise is that progressives are ruling in UAE and other parts of the Arab world while narrow-minded conservatives have gained ground in Malaysia, Iran, Afghanistan and Pakistan. And the outcome in the latter three countries has  been depressing for all!

References:

Dubai scraps 30% tax on alcohol sales amid economic rebound, The Star, 2 January 2023

Alcohol ban in Langkawi will hinder tourists: tourism to guns, Ian McIntyre, The Vibes, 3 January 2023