Rwanda’s government has announced that it will introduce a tourism levy to support development of the industry.
Approved by Rwanda’s Cabinet as one of several tax policy reforms on February 10, the levy will be payable by tourists and fixed at 3% of the overall hotel room rate for the duration of stay.
Cabinet’s statement on the changes did not include an implementation date but stressed that the reforms would be adopted before the end of Rwanda’s 2024/25 financial year (June 30). Operators also told Tourism Update they are not certain when the levy will come into effect.
The levy is expected to contribute to the goal of generating US$1.1 billion in tourism revenue by 2029 as outlined in government’s 2nd National Strategy for Transformation. The sector generated US$620 million in revenue for the country in 2023/24.