TANZANIA (eTN) – Despite that tourism plays an integral role to economies of Tanzania and Kenya, these two neighbor African destinations have neglected this crucial economic sector in their current annual budgets tabled for debating before parliaments late last week.
Currently under discussion, both annual budgets in Tanzania and Kenya had so far ignored tourism in their annual estimates. Tanzania had introduced a 15 percent excise duty in services provision sectors, focusing mostly on the transport sector.
The introduction of a 15-percent excise duty will also impact the tourism sector and will affect professional hunters through this duty imposed to guns and ammunition.
Aimed at making a significant increase in revenue collection, Tanzania waived tax exemptions from a number of tourist services including tourist guiding, game driving, water safaris, animal or bird watching, park fees, tourist charter services, and ground transport.
Other than the annual budget, tourists coming to Tanzania on July 1 this year will find an increase on park entry fees, now changed into conservation fees, ranging from US$60 to US$100 per 24 hours of which an individual tourist spends inside a key tourist wildlife park in Tanzania.
A tax exemption on aircraft lease rentals paid to non-residents will significantly increase the operating costs of local airlines, observers said. In addition, there is reference in the Tanzania budget to the introduction of an excise duty on aircraft and helicopters.
Other items whose charges were deemed for higher taxes include air conditioners, fridges, electronic equipment, office equipment, stationery, furniture, tiles, sugar, beverages, spirits, fuel, saloon cars, all of which are mostly used for tourist-handling services, accommodation, and beverage services.
While these changes will affect a broad range of sectors, the tourism sector will be particularly most affected. Other budget impacts for the transport sector and for tourism include a significant increase in taxes on petrol and diesel.
Kenya, on its side, slashed the tourism budget with Ksh 2 billion aimed for tourism development to add to the Education ministryโs allocation.
Both Kenya and Tanzania are the leading tourist magnets in East Africa, pulling more than a million visitors from last year.
The government of Kenya is targeting to attract 2 million tourists by the year 2016 and maintain this figure annually. This African safari destination recorded a total of 1,095,945 tourists in 2010, hitting the highest figure ever. In 2011, total tourist arrivals reached 1.26 million, slightly fewer than the 1.3 million Kenya had earlier targeted.
Tanzania had so far, attracted one million tourists by 2012 and generated about US$1.7 in revenue.
Poor and inadequate funding of government-run tourism boards in both Kenya and Tanzania had greatly derailed tourism development in these 2 neighbor safari destinations, drawing them back to compete with other destinations south of Sahara including Botswana, Namibia, South Africa, and Zimbabwe.
WHAT TO TAKE AWAY FROM THIS ARTICLE:
- Other than the annual budget, tourists coming to Tanzania on July 1 this year will find an increase on park entry fees, now changed into conservation fees, ranging from US$60 to US$100 per 24 hours of which an individual tourist spends inside a key tourist wildlife park in Tanzania.
- In addition, there is reference in the Tanzania budget to the introduction of an excise duty on aircraft and helicopters.
- Poor and inadequate funding of government-run tourism boards in both Kenya and Tanzania had greatly derailed tourism development in these 2 neighbor safari destinations, drawing them back to compete with other destinations south of Sahara including Botswana, Namibia, South Africa, and Zimbabwe.