authors
Safa Raid Adnan AL-Ansari and Amenah Hadi Ameen

abstract

Purpose: The United Arab Emirates (UAE) has set ambitious national sustainability goals, including the Net Zero 2050 initiative, while simultaneously strengthening its position as a leading global tourism destination. This study examines how targeted tax incentives can be strategically employed to accelerate the adoption of sustainable practices within the UAE’s tourism sector. It specifically investigates the alignment between environmental objectives and digital strategies, focusing on the perceptions and behavioral drivers of contemporary tourists.

Methodology: A mixed-methods approach was adopted. Quantitatively, a survey was administered to 200 international tourists visiting the UAE to assess their awareness of sustainability, price sensitivity, and the potential impact of direct financial incentives such as VAT rebates on eco-certified hotels and activities on their decision-making. Qualitatively, semi-structured interviews were conducted with key stakeholders, including hotel managers, tour operators, and tourism policymakers, to evaluate industry readiness and perceived challenges in implementing environmentally responsible initiatives. Additionally, a comparative review of existing digital tourism platforms and mobile applications was carried out to identify best practices for communicating sustainability credentials and delivering incentive-based rewards.

Findings: The results reveal a notable “say-do” gap among tourists: although many express a preference for sustainable options, cost and convenience remain the primary determinants of final choices. The study indicates that clear, easily redeemable tax incentives delivered through integrated digital platforms can effectively narrow this gap. Tourists showed strong interest in a unified mobile application capable of verifying eco-credentials, calculating potential savings, and supporting seamless bookings. From the industry standpoint, the main obstacles include the perceived complexity and cost of green certification and retrofitting. A digitally streamlined system for applying for and reporting tax incentives was identified as a crucial enabler for broader adoption.

Implications: The findings underscore the importance of integrating fiscal mechanisms with digital innovation to advance sustainable tourism. The study proposes a model in which government-supported incentives function not only as back-end financial benefits for businesses but also as front-end marketing tools that influence consumer choices. It offers actionable recommendations for developing a performance-based tax incentive framework accessible through transparent digital channels and aligned with tourist values. For tourism operators, the study highlights the strategic importance of embracing digital pathways to strengthen competitiveness. Ultimately, this research contributes a tourist-centered framework that harmonizes economic, environmental, and digital policies to support a resilient and sustainable tourism ecosystem in the UAE and beyond.