Reprinted from Travel Trade Gazette UK & Ireland

 

South Africa considers levying departure tax

 

Copyright 1998 Miller Freeman PLC
Article date: June 10, 1998
 

Winds of Change was the theme of last weekend's Institute of Travel & Tourism conference in Cape Town. Gary Noakes and Phil Davies report.

South Africa is considering introducing a departure tax to fund its fledgling tourism industry.

Speaking at the Institute of Travel & Tourism conference in Cape Town, Liz Westby-Nunn, chairman of the South African Tourism Board, said a tax was one of the options being considered by the government.

If it is introduced, part of the money raised will be used to start a Tourism Growth Fund aimed at helping grass roots businesses run by the country's indigenous population.

Ms Westby-Nunn said a date for the introduction of the tax and a rate were yet to be decided.

"Nothing has been formalized but the average is about $10," she said.

"If travelers recognize that they are contributing to the development process, I think it would be viewed positively.

"There is the huge question of overcoming 40 years during which people did not have education and opportunities."

It is envisaged that the Tourism Growth Fund will have three funding components.

Half the money raised would go to the tourist board for marketing and promotion.

Thirty percent would fund development and another 20 percent would go towards community projects.

It is estimated that a departure tax could raise £25 million.

"We are hoping the government will support it so that we can get on with the job of promoting tourism, which we are itching to do," said Ms Westby-Nunn.

The tourism board will also launch a campaign to reposition South Africa.

Promotion will concentrate more on the country being part of the continent of Africa.
 

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