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AU tax proposal draws wide condemnation

25 Jan 2017 - by Michelle Colman
Comments | 0

THROUGH the offices of

the Regional Tourism

Organisation of Southern

Africa (Retosa), 15 Southern

African countries have rejected

a proposed tourism tax

mooted recently by the African

Union (AU).

Their opposition backs that

of the Secretary-General of

UNWTO, Taleb Rifai, and Tony

Tyler, Iata’s dg and ceo.

Simba Mandinyenya,

Johannesburg-based acting

executive director of Retosa,

told TNW that tourism in

Africa was already highly taxed

and adding to the burden

would be counter-productive

to growth. Most Retosa

member states imposed

their own levies, which were

set at levels to sustain their

tourism development. “We

believe these to be adequate

support to the sector.” It was

up to national governments

to provide resources when

additional expansion was

called for, he said.

Press reports indicate that

the tax is not necessarily

intended for tourism

development on the continent

but to fund the donor-reliant,

cash-strapped union, which

has had to forego some of its

planned projects.

The tax, proposed at US$10

(R106) on air travel and US$2

(R21) on hotel stays, was

first mooted at an AU finance

ministers’ meeting earlier this

year and immediately drew

condemnation from a number

of ministerial representatives,

including South Africa.

It was again denounced by

ministers of tourism attending

the 56th Meeting of the

UNWTO Commission for Africa

in Angola last month. The

Seychelles Minister of Tourism

and Culture, Alain St Ange,

was quoted in media reports

stating: “We have all been

involved in lobbying to have

the United Kingdom scrap

carbon tax for long-haul travel,

which is a disincentive for

holiday traffic to Africa. And

now we are seeing our own AU

proposing just another tourism

tax. It is hypocritical and it will

hurt the tourism industry.’’

The World Travel and

Tourism Council (WTTC) has

echoed the disapproval.

David Scowsill, president and

ceo, commented: “Rather

than taxing tourists, I would

urge the African Union to

focus on ridding itself of

complicated visa processes,

liberalising its skies, planning

infrastructure for the long term

and eliminating poaching. It is

these measures, rather than

taxation, that will ensure it

gains a greater share of the

global tourism market.”

The Kenyan press has also

carried reports of objection by

individual property owners as

well as the Kenya Association

of Hotelkeepers and Caterers.

It is understood the

unpopular proposed tax is set

to be tabled at an AU Heads

of State meeting later this

year.

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