Tourism levies under spotlight
Following an 8% cut in fund allocation for the coming financial year, environment minister Pohamba Shifeta says levy collection will be scaled up and improved.
On top of the environment ministry's agenda for the coming financial year is the appointment of a new board for the Namibia Tourism Board as well as amendments to the Act to ensure efficient collection of tourism levies payable.
This follows after an 8% budget cut for this financial year with an allocation of N$447.364 million to the ministry.
Adjustments to the tourism levy, currently not reflecting occupancy rates, are also on the horizon.
Tourism minister Pohamba Shifeta yesterday told Namibian Sun that the ministry will be able to manage with the budget cuts and that it should have a negligible impact on tourism.
Shifeta said that the amount was agreed upon with the finance ministry after consultations with his departments to cut expenditure.
“It is a good move in the long-run and we can do with the little that we have.”
He told Namibian Sun that the ministry will have to prioritise important programmes such as the implementation of wildlife protection and security in national parks and also prioritise on savings in the ministry.
“We will have to manage with what we have and contain debt.”
He said that the budget cut may have negative impact on tourism but the impact is not expected to be too great.
“The tourism sector may suffer, but the projected decline will not be that much and in the next two years it will recover. The sector will not have a 0% growth.”
Meanwhile tourism establishments in the country have been found wanting in the way they pay their tourism levies. Despite an increase in the occupancy rates over the years, levies have been declining.
According to Shifeta, the Namibian Tourism Board (NTB) currently does not have enough power or legislation to demand all levies gathered by registered accommodation organisations like lodges and campsites. In order to control this, they are going to empower the NTB, especially with regard to the collection of tourism levies.
A tourism levy is a non-taxable amount which is paid to the NTB by a relevant organisation, and is normally included in the monies paid to establishments by guests.
Shifeta said that Namibia plays host to a large number of visitors but the revenue from tourism levies does not reflect this.
“There are some leakages with regard to the collection of tourism levies and these needs to be closed. Establishments are underreporting and NTB is not doing much do rectify this.”
According to him a new NTB board will be announced by the end of March and thereafter, amendments are to be made to the NTB Act to curb the low inflow of levies collected through local tourism activities.
He said that NTB Act will also be amended to give NTB more power to inspect these establishments and also even inspect the books of the tourism establishments.
He said that they will also look into giving local authorities powers to inspect tourism establishments.
The ministry is also planning to increase tourism levies and registration fees paid to tourism establishments.
Shifeta stressed that establishments should keep in mind that this money is used to market not only the country, but also the accommodation establishments.
ELLANIE SMIT
This follows after an 8% budget cut for this financial year with an allocation of N$447.364 million to the ministry.
Adjustments to the tourism levy, currently not reflecting occupancy rates, are also on the horizon.
Tourism minister Pohamba Shifeta yesterday told Namibian Sun that the ministry will be able to manage with the budget cuts and that it should have a negligible impact on tourism.
Shifeta said that the amount was agreed upon with the finance ministry after consultations with his departments to cut expenditure.
“It is a good move in the long-run and we can do with the little that we have.”
He told Namibian Sun that the ministry will have to prioritise important programmes such as the implementation of wildlife protection and security in national parks and also prioritise on savings in the ministry.
“We will have to manage with what we have and contain debt.”
He said that the budget cut may have negative impact on tourism but the impact is not expected to be too great.
“The tourism sector may suffer, but the projected decline will not be that much and in the next two years it will recover. The sector will not have a 0% growth.”
Meanwhile tourism establishments in the country have been found wanting in the way they pay their tourism levies. Despite an increase in the occupancy rates over the years, levies have been declining.
According to Shifeta, the Namibian Tourism Board (NTB) currently does not have enough power or legislation to demand all levies gathered by registered accommodation organisations like lodges and campsites. In order to control this, they are going to empower the NTB, especially with regard to the collection of tourism levies.
A tourism levy is a non-taxable amount which is paid to the NTB by a relevant organisation, and is normally included in the monies paid to establishments by guests.
Shifeta said that Namibia plays host to a large number of visitors but the revenue from tourism levies does not reflect this.
“There are some leakages with regard to the collection of tourism levies and these needs to be closed. Establishments are underreporting and NTB is not doing much do rectify this.”
According to him a new NTB board will be announced by the end of March and thereafter, amendments are to be made to the NTB Act to curb the low inflow of levies collected through local tourism activities.
He said that NTB Act will also be amended to give NTB more power to inspect these establishments and also even inspect the books of the tourism establishments.
He said that they will also look into giving local authorities powers to inspect tourism establishments.
The ministry is also planning to increase tourism levies and registration fees paid to tourism establishments.
Shifeta stressed that establishments should keep in mind that this money is used to market not only the country, but also the accommodation establishments.
ELLANIE SMIT
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