Safari costs are expected to go down after last week’s announcement by Kenya’s National Treasury Minister, Henry Rotich, that the Government had waived 16% VAT charged on park entry fees with the aim of bringing down game drive costs. Rotich also said that commission earned by tour operators would be exempt from VAT, bringing a relief to tour firms.

The Government proposed to increase airport tax for both internal and external travel with the revenue collected to be used for promoting the country in tourist source markets.

Tourism players applauded the Government’s move to waive the VAT on park entry fees, saying it would make the destination more competitive.

The Kenya Association of Tour Operators (Kato) earlier circulated a petition to revoke the VAT imposed on tourism services. Fred Kaigua, Chief Executive Officer of Kato, had said that the petition was among a series of strategies that the association’s Recovery Committee had devised to push the Government to scrap the VAT charged on tourism services.

In September last year, a number of previously exempt tourism services, including tour operator services and park fees, were subjected to a 16% VAT charge in line with the VAT Act  of 2013.

The petition had stated that the imposition of VAT came at a time when the destination was suffering from the effects of negative publicity.

Previously, Kenya’s premier parks used to charge $90 per visitor, which tour operators complained was making the country an expensive safari destination.

In January, Kenyan President Uhuru Kenyatta announced that his government would reduce park entry fees from $90 to $60 per visitor in a bid to woo more international wildlife enthusiasts to the country.

Tourism Update is increasing its coverage of destinations outside South Africa. Do you have news in East Africa? Send your news to editor@tourismupdate.co.za.