South African travel agents could soon be adding one more ‘tax’ to those they collect if the Tomsa (Tourism Marketing Levy South Africa) levy is extended to travel agencies.
In March this year, the Tomsa board agreed to extend its levy collector base to travel agents and other tourism industry partners but no indication has been forthcoming as to the amount to be collected. South African travel agents currently are not Tomsa levy collectors.
Kagiso Mosue, PR and Communications Co-ordinator at TBCSA, says: “At this stage the idea of expanding the levy collector base to other tourism sectors has been discussed at board level. How this system will apply to the different sectors (such as travel agents) is a matter that is still under consideration and fervent discussion. A formal communiqué regarding this will be issued to the trade and Asata in due course.”
In her blog, Chicken or Beef?, Asata CEO, Robyn Christie, said Asata would support initiatives that encouraged the promotion of South Africa but was concerned about burdening customers with any further taxes or levies.
Wayne Duvenage, outgoing CE of Avis, says: “The proposal is that the tourism levy would be charged on agency service fees only (i.e. not in addition to the total car rental/hotel charges). This way it falls into the ambit of all tourism or travel charges as they are directly in the travel and tourism industry.”
Tomsa is a private-sector initiative, set up in 1998 to raise additional funds for the marketing of destination South Africa. The levy is collected by the TBCSA and given to SA Tourism to promote the country as a preferred tourist destination, locally and internationally.
Tourism promotion fund problems
VOLUNTARY fund raising by the private sector to partner government to promote destinations is not without its problems.
In the US, the federal government is matching what the private sector raises two to one. The private-sector target is R400m (US$48m) of which only 20% needs to be in cash and the rest in kind. The government will then match this with R800m (US$96m) but the 300 corporate and publicity association donors, which have found the cash portion, are struggling to raise the in kind portion. Interestingly, the government portion is being funded from part of the R120 (US$14) ESTA levy on visitors arriving from countries under the visa waiver programme.
In Canada the raising of destination marketing funds used to promote inbound and domestic tourism is in the news because of lack of regulation. The provincial authorities are trying to stop attractions and hotels in Niagara Falls from charging a 3% destination marketing fee because each property does what it likes with the money.
The fee is supposed to be voluntary but travellers who ask for it to be removed from their bill have allegedly been told it cannot be done as it is a city tax. The funds are untraceable and Tourism Niagara says it has no idea how much is collected.
