Additional VAT charges raise Kenya’s park fees Entrance fees for Kenya’s national parks have increased after the introduction of additional VAT charges in the country. The new charges, which came into effect on January 1, are published on the Kenya Wildlife Service (KWS) website. In September last year, a number of previously exempt tourism services, including game drives and conservancy and park fees, were subjected to a 16% VAT charge as part of the VAT Act 2013. The Act was met with criticism from the trade, which cautioned that increasing VAT charges would negatively affect tourism to Kenya. John Gakinya, md Trails of Africa Tours and Safaris, expects the increased fees to definitely impact tourism because they raise the average spend per day for tourists visiting the parks. “Bearing in mind that tourism is a global industry with destinations competing between themselves, if the countries around us do not charge VAT on park fees, then we will look more expensive in the market,” he says. However, John says the long-term effect of the charges will depend on what industry received in return for the increment. “If the funds are used to improve the product then in the long run the industry players benefit,” he says. The Kenya Association of Tour Operators is lobbying government to reconsider the additional charges. The association says it will also seek clarification on safaris that were sold before the new rates came into effect. According to KWS, the cabinet secretary for environment, Judi Wakhungu, will address a press conference within the next few days to clarify the VAT issue. The body emphasises that the decision is beyond its control.
Posted on: Thu, 16 Jan 2014 05:54:20 +0000
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