Chilean tourism boosted by proposal to reimburse VAT to foreign tourists

15-04-24

The Chilean Government has presented this Thursday an ambitious Bill of Measures for the Reactivation of Tourism, designed to revitalize and stimulate the country's tourism sector after the challenges imposed by the pandemic. Among the most noteworthy measures is the proposal to refund Value Added Tax (VAT) to foreign tourists on purchases of goods made during their stay.

In addition to the VAT refund on purchases, the project includes similar incentives for the production of foreign audiovisual projects in Chile, seeking to turn the country into an attractive center of international production. This initiative not only seeks to increase direct tourism, but also to boost Chile's image worldwide through its presence in various international media and platforms.

The plan, which will be sent to Congress for approval, also contemplates a significant investment in the international promotion of the country as a tourist destination. With a proposed budget of US$20 million, doubling the current allocation of US$10 million, the Chilean government aims to attract more than one million additional visitors each year, thus surpassing pre-pandemic visitor figures.

For the effective management of these resources, the Commission for International Tourism Promotion, a mixed entity with participation from both the public and private sectors, will be created. This commission will have the task of allocating and managing the funds earmarked for the promotion of Chile abroad, ensuring that the strategies implemented maximize the return on investment in terms of tourist attraction and economic benefit for the country.

This set of measures shows the Chilean Government's commitment to the reactivation of tourism and its confidence in the sector's ability to contribute significantly to the country's economic and cultural development.