INDUSTRY:
Smart Tourism

The shift towards Smart Tourism is transforming the tourism industry, significantly improving the traveller experience and destination management. However, this evolution brings legal and fiscal challenges, essential for the entire ecosystem to adapt to current regulations and anticipate future ones. Do you want to understand these transformations in depth?

The new traveller and the boom of Smart Tourism

Contemporary generations present markedly different consumption habits from twentieth-century travellers, who, in turn, have navigated the technological and mobile revolution.

Today, tourist destinations are embracing intelligence, not only culturally but also by implementing technologies that respect users’ rights. This transition has driven the metamorphosis of cities and localities, the conception of innovative projects and the incorporation of emerging technologies that still await regulation.

Although the sector is strategic and offers exciting opportunities, we are open to future challenges. Let’s explore these changes, their challenges and their impact on the industry.

Trends and transformations: the paradigm of the modern traveller

Technology has not only changed how travellers plan and experience their trips, but it has also redefined their expectations about their destinations. Hyper-personalized experiences are now the standard, not the exception. Through apps and digital platforms, travellers expect goals to understand their preferences, from accommodation and dining to excursions and recreational activities.

AI-based recommendations and predictive analytics are becoming crucial tools for tourism service providers who want to offer these tailored experiences.

This technological and ethical revolution in tourism has its challenges. The rapid adoption of emerging technologies requires a robust infrastructure, investment and continuous training. In addition, stakeholders must work together to establish regulations that protect both travellers and destinations while ensuring that the potential of Smart Tourism is fully realized.

Primary concerns

In the field of Smart Tourism companies, which aim to enrich the tourism experience through the application of technology, significant issues arise that require specialized legal advice.

Industry:
Smart Tourism

Cybersecurity

Smart Tourism, rooted in technology and data analysis, exposes businesses to cyber threats. In this digital age, it is crucial to fortify defences to protect users’ systems and information from unauthorized incursions and data breaches.

Data privacy and safekeeping

While digitization has facilitated processes, it has also intensified privacy concerns. Companies must not only meticulously align with legal guidelines on privacy but also seek explicit and transparent consent from their customers when collecting and processing their data.

Registration and identification in foreign jurisdictions

The increase in regulation on tour operators can entail identifying and complying with recurring tax obligations in the markets where they operate.

Services in jurisdictions with limited presence

Government pressure to tax transactions in their territories is palpable, especially when physical and economic presence is limited.

Projects of public entities

Public authorities are strongly advocating for Smart Tourism. Private companies participating in public projects and competitions should consider the tax implications that may arise.

Critical strategies for the legal challenge

As tourism adopts a more technological and digital perspective, unprecedented legal challenges emerge. Entities within Smart Tourism must have straightforward tactics to navigate this ever-changing landscape. 

Within Smart Tourism, legal challenges range from artificial intelligence regulation to legal certainty. These challenges include:

Safeguarding intellectual property is linked to adopting cutting-edge technologies, such as virtual reality, artificial intelligence and blockchain.

Artificial intelligence regulation focuses on the clarity of algorithms, algorithmic fairness and autonomous decisions.

Managing large datasets with inherent challenges of privacy and custody of user information.

The expansion in the use of drones and driverless vehicles in Smart Tourism generates challenges in regulating their use and safety certainty.

Responsibility for technological eventualities that may harm users or service interruptions.

Recommended steps for the fiscal challenge

In Smart Tourism, addressing complex tax challenges properly is essential. Analysing risks and opportunities, complying with local tax regulations, and anticipating potential tax issues are all part of a robust tax strategy for achieving success.

Conduct a thorough analysis of the tax regulations and registration requirements in the foreign jurisdictions in which you operate.

Design robust tax policies aligned to the international context to ensure tax compliance and reduce exposure to tax risks at an early stage.

When participating in international smart tourism public projects, it is essential to consider the tax implications of the country in question.

Maximize using locally available tax credits to mitigate the global tax burden.

Ensure legal security in the Smart Tourism era with Mylegalinbox!

The world of Smart Tourism, full of innovations, requires meticulous and ethical management. Careless implementation can lead to adverse situations for your customers. Therefore, it is crucial to conduct thorough regulatory assessments to prevent and mitigate potential risks associated with such technological advances.

At Mylegalinbox, we understand the imperative demand to act transparently and fairly. Our legal and tax services are designed to empower and ensure the success of your business while guaranteeing adherence to current regulations in the TravelTech sector.

Strengthen and ensure the success of your Smart Tourism strategy with Mylegalinbox!

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