By Neo Kolane
The Lesotho Tourism Development Corporation (LTDC) this week announced an introduction of a tourism levy.
The introduction of the levy was effected from October 1 as part of generating revenue for promotion of vibrant tourism industry and the country as choice of destination for local and international visitors.
Tourism levy collection is viewed as milestone which will be productive in assisting to market the country’s tourism attraction places locally and internationally, building capacity of tourism enterprises, development and maintenance of tourism products and facilities, training of front liners, investment purposes as well as in installation of tourism specific signage.
The chief executive officer of LTDC Dr Retṧelisitsoe Nko expressed gratitude that the Tourism Levy Act of 2006 became operational on October 1 2022 after 15 years of its amendment.
Nko explained that the will be pleased to contribute to the country’s economic development through tourism levy.
“I urge Basotho to comply with the Act because it is not intended to harm businesses but will rather be helpful in the long run.
“It is the responsibility of every Mosotho to contribute in the development of tourism in the country,” Nko said.
The LTDC’s head of finance and administration, Thetso Thamae disclosed that 50 percent of the levy will be used to promote tourism, while the 30 percent will be used for administration and the 10 percent will be used by the ministry of tourism to formulate laws and regulations for tourism.
Thamae said the last 10 percent will be for investment purposes.
For her part, the levy tax officer at LTDC ‘Masalang Khasake said for hotels and hospitality services 1.5 percent per room is expected to be collected and for travelling agents, M50 needs to be collected on every ticket paid.
“For attraction places, the percent will vary depending on where the attraction is based; either locally or regionally. It is to range from M5 to M30.
Khasake said as for event organisers 1.5 percent of every ticket bought needs to be collected.
“All these people need to register, so that they can be given a certificate which will be proof that they are enlisted.
“Registering helps the corporation in proving that a person takes responsibility and complies with the law. It will also show as a proof that one is engaged in tourism business.
“The deadline for submission of the levy is the 10th of every following month,” she said.
In an interview with theReporter this week, the director of Molengoane Lodge, Ka Pitseng Guest House and Molimo-Nthuse Lodge Mothe Mohapi said they have already filled up for registration. They three have already been awarded certificates.
Mohapi said initially the corporation had said the hospitality and hotel entrepreneurs would have to pay five percent but “we pleaded that it should be reduced which they have done.”
“We were not trained on how to come up with the formula and also how to return the interest money collected,” she said.
She was hopeful the interest will take a long time being constant and that “it does not increase in the coming year.”
