| The Tax Barometer is composed of four trip elements:
lodging, car rental, meals, and airport arrival and departure. Each element of the
trip is priced according to a standard purchase by a hypothetical "WTTC
Traveler" in each destination.
This trip includes
the purchase of four nights' lodging, four days'
car rental, twelve meals, and one set of international arrival and departure
airport charges. Taxes imposed on these purchases are then
identified, recorded, and developed into a sector index. Next, these elements are
aggregated into a composite index for the destination, based on the average cost of each
element included in the standardized trip. If you would like more information on the
development of the Tax Barometer, please refer to our research methodology. |
 |
Rank |
|
Total tax $ for 5-day/4-night trip: |
$217.71 |
37 |
|
Percentage of total item cost: |
16.80% |
34 |
|
Overall tax index: |
122 |
29 |
The first item in the above table represents
the combined tax total
paid by the WTTC Traveler in each of the four sectors in
Nairobi. The second
item (percentage of total
item cost)
indicates what percentage of the total bill
is devoted to taxes.
The last item (overall tax index)
reflects the cumulative change in the amount
of tax paid in U.S. dollars between June 1994 and
June 2002.
The rankings show how
Nairobi compares with other Tax Barometer cities; a ranking of 1
is most competitive, while a ranking of 52 is least competitive.
Summary:
Nairobi currently has an
overall Tax Barometer index of 122,
indicating a 22%
increase in
travel-related taxes since June 15, 1994,
the 22nd highest increase among all 52 surveyed destinations.
This change can be
attributed to an increase in the restaurant sector; tax rates in the
car rental, lodging, and air passenger sectors remain at their base
index levels. For a five-day, four-night trip to
Nairobi, travelers
can expect to pay approximately $218.00 in tourism-related taxes, a
total that ranks as the 16th highest among all
surveyed destinations. |
 |
Rank |
|
Average price for 4-day rental (mid-size) without taxes: |
$318.00 |
- |
|
Value added tax (VAT): |
18.00% |
- |
|
Total charges for 4-day rental with taxes: |
$375.24 |
- |
|
Total tax $ for 4-day rental: |
$57.24 |
34 |
|
Percentage of total car rental cost: |
15.25% |
22 |
|
Car rental tax index: |
100 |
1 |
|
Summary:
Car rental taxes in remain at their base index level, and
Nairobi is one of only 14 destinations that have not raised their car
rental tax rates since 1994. Visitors can expect to pay
approximately $57.00 in taxes for a four-day mid-sized car rental, a
total that ranks as the 19th highest among all 52 surveyed
destinations. |
 |
Rank |
|
Average price for 4-nights lodging without taxes: |
$531.99 |
- |
|
Value added tax (VAT): |
18.00% |
- |
| Total
charges for 4-nights lodging with taxes: |
$627.75 |
- |
|
Total tax $ for four-nights: |
$95.76 |
41 |
|
Percentage of total hotel room cost: |
15.25% |
46 |
|
Hotel
tax index: |
100 |
8 |
Summary: Nairobi's hotel tax rate
remains at its base index level, but it has fluctuated between 15-18%
over the past several years. The most recent change occurred in
2000, when the lodging VAT was increased from 15.0% to its current
(and base index) level of 18.0%. Visitors can expect to pay
around $96.00 in taxes for four nights of lodging, a total that ranks
as the 12th highest among all 52 surveyed destinations. |
 |
Rank |
|
Average price for 12 restaurant meals
without taxes: |
$248.41 |
- |
|
Value added tax (VAT): |
18.00% |
- |
|
Total charges for 12 meals with taxes: |
$293.12 |
- |
|
Total tax $ for 12 meals: |
$44.71 |
36 |
|
Percentage of total restaurant meals cost: |
15.25% |
39 |
|
Restaurant tax index: |
900 |
51 |
Summary: Restaurant taxes in Nairobi have increased 800%
since 1994, the second highest increase among all 52 surveyed
destinations. The restaurant VAT rate was 2.0% in the base
index, but has been increased five times in the past seven years to
its current 18.0% level. The most recent change occurred in
2000, when the VAT rate was increased from 15.0% to its current
18.0% level. Visitors can expect to pay approximately $45.00 in
taxes for 12 restaurant meals, a total that ranks as the 17th highest
among all surveyed destinations. |
 |
Rank |
|
International passenger airport service charge: |
US$ 20.00 |
- |
|
Total tax $ for international arrival and departure: |
$20.00 |
29 |
|
Percentage of total trip cost: |
1.54% |
28 |
|
Air passenger tax index: |
100 |
4 |
Summary:
Taxes on international airline passengers remain at their base index
level, and Nairobi is one of only five destinations have an air
passenger index at or below 100. The international airport
service charge was briefly increased to US$ 40.00 in 2000, but was
decreased to US$ 20.00 in June 2001. The $20.00 in applicable
air passenger taxes is the 24th highest among all 52 surveyed
destinations. |
 |
|
Barometer No. 1:
The tax rate on car
rentals and hotel rooms was reduced from 18.0% to 15.0%, while the tax
rate on restaurant meals increased four percentage points to 6.0%.
Barometer No. 4:
The VAT on meals was increased from 6.0% to 8.0%.
Barometer No. 5:
The VAT on lodging
was increased from 15.0% to 16.0%.
Barometer No. 6:
The VAT on car
rentals was increased from 15.0% to 16.0%, and the VAT on meals was
increased from 8.0% to 12.0%.
Barometer No. 8:
The VAT on car rentals and lodging was lowered from 16.0% to 15.0% and
the VAT on restaurant meals was increased from 12.0% to 15.0%.
Barometer No. 9:
The Kenyan VAT was raised to 18.0%, affecting car rentals, lodging,
and restaurant meals. Also, the airport service charge on
international airline passengers was doubled to US$ 40.00.
Barometer No. 10:
The international airport passenger service charge was reduced to US$
20.00 from US$ 40.00, effective 6-20-01.
|
|
