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Tourism Authority to leverage on tourism levy

Mrs Elizabeth Ofosu-Adjare, Minister for TourismThe Ghana Tourism Authority (GTA) is hoping to leverage the Tourism levy to develop tourism products across the country to give more value to patrons.
The authority, which is estimating to collect about GH¢3 million by the close of the year, said it would seek board approval to support at least one viable tourist product (facility) in each of the 10 regions to encourage visitors to stay with sites for long and therefore spend more.

“Our board will later decide to support one regional tourism product – based on the region’s strength in tourism – to be the centre of development of the sector in the region,” the acting Chief Executive of the GTA, Mr Samson Donkor, told the GRAPHIC BUSINESS.

The GTA, as part of its long-term development plan, has designed a strategic branding plan for the country’s 10 regions, creating slogans and catch phrases (taglines) after the tourism strength of the regions. It will rely on funds such as the tourism levy.

The levy is one of the sources of funding for the newly instituted Tourism Development Fund set out in the revised Tourism Act, 2011, (Act 817).

The levy is one per cent of a person's expenditure at a tourist facility such as a hotel, conference centre, beach and drinking spot. It is to be collected by the operator and transmitted to the Ghana Tourism Authority in accordance with Act 817.

Mr Donkor explained that although the levy and Tourism Development Fund were inadequate, it represented a refreshing beginning which could be used judiciously to make some impact.

He said there were interesting tourist sites, especially of eco-tourism which were in their raw states that needed additional facilities to engage the visitor.

“We have about 31 ecotourism sites across the country but apart from Ankasa, Kakum and Mole National Parks, most of the sites lack basic infrastructure and facilities that can sustain visitors’ interest to stay on for a day more. This is how we can entice them to spend, the target of every tourism strategy,” the acting GTA chief executive said.

The first phase of implementing the tourism levy started in October last year and ended this April. It involved the registration of hotels and catering service facilities in all 10 region, into the GTA’s system. The registration mandates the companies to collect the one per cent tourism development levy and transmit same to the GTA.

Mr Donkor told the GRAPHIC BUSINESS that the next phase, which started in May 2013, involved the monitoring of those in their system to ensure compliance, adding that the next phase would involve roping in the travel trade industry, including travel and tour companies; tour operators; travel agencies; tour guides and ground handlers, starting October 2013.

The GTA also hopes to register what it calls the informal sector for the collection of the levy. However, because it is difficult to assess transactions carried out by operators in this sector, which includes drinking spots and chop bars, snack bars and caterers, the tourism authority will collect a lump-sum from this category.

To avoid double incidence of taxation, only the commissions earned on the service rendered by tour operators will suffer the incidence of the levy, and not their entire charges.

By Samuel Doe Ablordepey/Graphic Business/Ghana

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