African Union Members Reject Tourism Tax

African Union Members Reject Tourism Tax

From eNews Channel Africa.

At least 10 African countries say a proposed tourist tax that would help fund the African Union Organization would hurt countries that rely on tourism.

Those opposed say a tax would cause a drop in airline profits, burden vacationers, deter tourists and eventually result in job cuts in the industry.

At the recent African Union summit, leaders explored alternative sources of funding, saying they needed to start looking to members to fund the organisation instead of relying on external support, according to a report in eNews Channel Africa.

The tourism tax proposal for African states included $10 on all air tickets and $2 on all accommodation bookings.

Kenya had one million visitors last year and would contribute $10 million based on 2012 data from air travel taxes alone, the report says.

Some countries aren’t paying their membership fees to the African Union, the report says.

A draft proposal has been sent to finance ministers from the 54 African Union member states with feedback expected at the next African Union summit in January.

Read more at eNews Channel Africa.