Singapore’s tourism sector is exhibiting indicators of restoration following the COVID-19 pandemic, with 2023 tourism receipts reaching roughly US$24.5 to US$26 billion, surpassing earlier forecasts.
Nonetheless, this nonetheless represents solely 88 per cent to 94 per cent of pre-pandemic ranges recorded in 2019. Regardless of the constructive trajectory, socio-economic components are anticipated to mood the tempo of restoration. One such issue is the present strategy of GST refunds for vacationers, the place refunds are solely processed upon their departure from Singapore, doubtlessly leading to income leaving the nation.
Recognising the disconnect between the meant objective of tax-free buying and the vacationer expertise, utu, a Singapore-based firm, seeks to revolutionise the tax-free buying expertise. By providing vacationers the choice to upsize their GST refunds immediately, utu goals to offer instant worth that can be utilized for extra purchases in-store. This method addresses the constraints of conventional VAT refunds, permitting vacationers to unlock the total potential of their refunds earlier than leaving the nation.
Partnering with retailers, journey rewards programmes, and exploring duty-free collaborations, utu goals to reinforce vacationers’ buying experiences whereas benefiting native companies and economies.
“We perceive conventional VAT refunds will be limiting for vacationers. That’s why we empower them to unlock the total potential of their refunds straight away earlier than leaving the nation. We rework their VAT refunds into on the spot rewards – vacationers nonetheless observe the common tax-refunding procedures, however utu provides that further layer of pleasure,” says co-founder Ameer Jumabhoy in an electronic mail to e27.
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Reworking GST refund with utu
Lately, utu has made a number of notable milestones, beginning with its capability to climate via the COVID-19 pandemic, which affected the journey and tourism industries considerably. It has partnered with manufacturers similar to Qatar Airways, Singapore Airways, and Accor.
utu has additionally launched utu Privileges, a programme that enables vacationers buying in Singapore to upsize their tax refunds by as much as 110 per cent of the Items and Companies Tax (GST) paid on their purchases. In accordance with the corporate, this upsized refund can be utilized instantly to offset purchases at collaborating retailers, boosting gross sales and retaining vacationer {dollars} circulating inside Singapore’s financial system.
“We’re nonetheless within the early levels, however utu Privileges has the potential to be game-changing. It’s designed to generate extra vacationer spending, and retailers are seeing the worth proposition. This product signifies a shift in how tax-free buying can profit everybody concerned,” Jumabhoy explains.
“We constructed this mannequin with a win-win mentality. I, like most individuals, am completely over subscription fatigue – my streaming payments alone are scary! With utu Privileges, we’re performance-based. We solely earn a price when our expertise drives an extra sale for a service provider. No subscriptions, only a deal with boosting their backside line.”
utu defines its major customers as on a regular basis consumers desirous to stretch their tax-free refunds additional. “We deal with typical purchases – perhaps a pleasant purse, a pockets, or a pair of sneakers – that symbolize nearly all of tax-free spending,” explains Jumabhoy.
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The corporate has two predominant focuses for its consumer acquisition technique: Collaborating with Journey Companions and Retail Companions to supply utu Privileges to their clients.
“We collaborate with main airways similar to Etihad, EVA Airways, and THAI, in addition to lodge teams like Accor, to onboard their members onto the utu
platform. This lets them enhance their refunds with miles or rewards factors,” the CEO says. “Our retail companions similar to La Martina and Coccinelle straight promote utu Privileges to vacationers of their shops.”
Jumabhoy additionally stresses that whereas utu tracks its consumer acquisition, its true success measure is the transactions it drives. “That’s after we know we’ve got helped vacationers get extra from their buying expertise.”
Empowering travellers with AI
utu is presently run by a staff of fifty from its workplaces in Singapore, Bangkok, Hyderabad, and Milan. In accordance with Jumabhoy, the corporate’s world presence permits it to faucet into distinctive views and higher perceive the wants of its worldwide companions.
It additionally counted SC Ventures as one in every of its key traders.
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When requested about their main plan this yr, Jumabhoy hints about introducing a brand new AI-based software to help its Privileges programme.
“This yr, we’re targeted on revolutionising the best way vacationers expertise tax-free buying. We’re about to launch a cutting-edge AI software that can rework how our utu Privileges programme is used, making it much more seamless and rewarding. Whereas we’re not primarily an AI firm, we recognise the facility of this expertise to drive distinctive consumer experiences,” Jumabhoy closes.
“Moreover, we’ve got a number of main partnerships within the pipeline that can prolong the advantages vacationers can take pleasure in with utu. Our aim is to create a really related journey, from the second they store to the second they depart. Hold a detailed eye on our bulletins – thrilling issues are on the horizon!”
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Picture Credit score: utu
This text was first revealed on March 26, 2024
The put up How utu aims to boost tourism by transforming the traditional VAT refunds system appeared first on e27.