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Ameer Jumabhoy, co-founder, utu
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 means 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 supposed goal of tax-free procuring and the vacationer expertise, utu, a Singapore-based firm, seeks to revolutionise the tax-free procuring expertise. By providing vacationers the choice to upsize their GST refunds immediately, utu goals to offer speedy worth that can be utilized for added 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’ procuring 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 remodel their VAT refunds into immediate rewards – vacationers nonetheless comply with the common tax-refunding procedures, however utu provides that further layer of pleasure,” says co-founder Ameer Jumabhoy in an e-mail to e27.
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Remodeling GST refund with utu
In recent times, utu has made a number of notable milestones, beginning with its capacity to climate by the COVID-19 pandemic, which affected the journey and tourism industries considerably. It has partnered with manufacturers corresponding to Qatar Airways, Singapore Airways, and Accor.
utu has additionally launched utu Privileges, a programme that enables vacationers procuring in Singapore to upsize their tax refunds by as much as 110 per cent of the Items and Providers Tax (GST) paid on their purchases. In response to the corporate, this upsized refund can be utilized instantly to offset purchases at taking part retailers, boosting gross sales and protecting vacationer {dollars} circulating inside Singapore’s economic system.
“We’re nonetheless within the early phases, 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 procuring 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 charge when our know-how drives a further sale for a service provider. No subscriptions, only a concentrate on boosting their backside line.”
utu defines its main customers as on a regular basis customers desirous to stretch their tax-free refunds additional. “We concentrate on typical purchases – perhaps a pleasant purse, a pockets, or a pair of sneakers – that symbolize the vast majority of tax-free spending,” explains Jumabhoy.
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The corporate has two major focuses for its person acquisition technique: Collaborating with Journey Companions and Retail Companions to supply utu Privileges to their clients.
“We collaborate with main airways corresponding to Etihad, EVA Airways, and THAI, in addition to resort 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 corresponding to La Martina and Coccinelle instantly promote utu Privileges to vacationers of their shops.”
Jumabhoy additionally stresses that whereas utu tracks its person acquisition, its true success measure is the transactions it drives. “That’s after we know we have now helped vacationers get extra from their procuring expertise.”
Empowering travellers with AI
utu is at the moment run by a crew of fifty from its workplaces in Singapore, Bangkok, Hyderabad, and Milan. In response to 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 among its key traders.
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When requested about their main plan this 12 months, Jumabhoy hints about introducing a brand new AI-based instrument to assist its Privileges programme.
“This 12 months, we’re targeted on revolutionising the best way vacationers expertise tax-free procuring. We’re about to launch a cutting-edge AI instrument that may remodel 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 know-how to drive distinctive person experiences,” Jumabhoy closes.
“Moreover, we have now a number of main partnerships within the pipeline that may prolong the advantages vacationers can get pleasure from with utu. Our purpose is to create a very linked journey, from the second they store to the second they depart. Hold an in depth eye on our bulletins – thrilling issues are on the horizon!”
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Picture Credit score: utu
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