Tourism tax in Africa?

Mr Rifai alerted that “A tourism tax in Africa is a threat to the competiveness of the region and to all African economies which increasingly have tourism as a key pillar to their development. Any decision on the possible imposition of a tourism tax in Africa should be carefully evaluated as to the negative impact it will have on tourism demand, economic growth and jobs”.

International tourism in Africa has been growing steadily in recent years. In 2013, Africa received 56 million tourists up from 26 million in 2000. International tourism generates US$34 billion in exports in Africa, accounting for as much as 7% of all exports and 56% of the region’s services exports. Yet despite such progress, tourism in Africa is still in its early development stage, accounting for only 5% of international tourism, and faces several barriers impeding its further growth and competitiveness.

The imposition of a tourism tax in Africa will impact not only the tourism sector, but African economies as a whole, as every tourist means more jobs and business opportunities in tourism but also in related sectors, higher income for families, increased investment and more opportunities for grassroots development.