Union opposes county’s bid to impose catering levies on Mombasa hotels

A trade union has called for the suspension of a proposed Finance Bill by Mombasa County that is seeking to impose accommodation and catering levies of between Sh120,000 and Sh80,000 as it may lead to job cuts in hotels.

The county is proposing a room levy of between Sh120 and Sh180 a month, per occupancy, for both non-rated and rated hotels.

However, the Kenya Union of Domestic, Hotels, Educational Institutions, Hospitals and Allied Workers opposed the levies, saying they would overburden the hotels.

The union’s Mombasa and Kwale branch Secretary Zack Osore said hotels are struggling financially because the tourism sector is yet to recover.

Since last year, he said, hotels have experienced low business because of few international guests.

Out of the 20,000 permanent and contracted workers, only a few have returned to work since last year owing to the tourism slump.

“Counties at the Coast should suspend the levies for at least two years for the sake of hotel workers,” said Mr Osore.

MARKET THE REGION

Speaking to the Nation on Monday, he called on the county governments to set aside funds to market the region.

“The Coast depends on tourism. County governments should play a major part in marketing the region to woo tourists,” he said.

Last week, Kenya Association of Hotelkeepers and Caterers Coast Chief Executive Officer Sam Ikwaye also opposed the charges, saying hotels are already paying catering levy to the Tourism Fund.

“We oppose the accommodation and catering levy as it would amount to double taxation,” said Mr Ikwaye.

At the same time, Mr Osore urged government ministries and parastatals to clear the bills they owe to the hotels for holding conferences.

He said the non-payment of the millions of shillings had made it difficult for the hotels to pay workers.