Mombasa County urged to shelve new levies on hotels to save jobs

Mombasa County government has been urged to shelve the proposed accommodation and catering levies on hotels to save jobs.

Hotels, lodges and those offering accommodation and catering services face an annual fee of between Sh80,000 and Sh120,000 if the proposed finance bill is passed.

It also plans to charge all hotels between Sh120 and Sh180 per room each month for every occupancy.

However, the Kenya Union of Domestic, Hotels, Educational Institutions, Hospitals and Allied Workers has opposed the new levies arguing they will hurt the already burdened hotels.

Mombasa and Kwale branch secretary Zack Osore noted that the hotels are still struggling because the sector is yet to recover from the effects of travel advisories issued by Western powers that affected tourism.

“Since last year, hotels have been enduring low business after international guests kept off,” said Mr Osore.

Over 20,000 permanent and contracted workers have been at home since last year owing to the tourism slump and only a few have returned to work.

“The county should withdraw the proposed accommodation, catering and room levies for the sake of workers in these hotels,” Mr Osore said on Monday.

He went on: “Coastal counties should suspend the new levies for at least two years in support of revival of the sector.”

Mr Osore called on the county governments to also set aside funds to market Coast as a destination for holidaymakers.

“This region depends on tourism and the counties should also play a major part in marketing it both in both traditional and emerging markets,” he added.

REVENUE

Last week, the Kenya Association of Hotelkeepers and Caterers Coast executive officer Sam Ikwaye opposed the new levies saying hotels were already paying catering levy to Tourism Fund.

“We strongly oppose the accommodation and catering levies as they will amount to double taxation,” Mr Ikwaye said.

“For the last two years, hotels have been enduring low business. It is therefore appalling that the county wants to burden them further,” he lamented.

He said the county government should seek alternatives of generating revenue.

Meanwhile, Mr Osore wants government ministries and parastatals to pay millions they owe for conferences they held in their facilities.

He said failure to clear the bills has made it hard for the hotels to operate and pay workers.

“Because of limited international quests, hotels are now relying on collections from hosting conferences to fund their operations,” he said.

Elsewhere, tourism in Taita-Taveta County is set to get a boost after the county marked 100 years since the first flight in East and Central Africa took off at Mwaktau during the First World War. 

The county has also introduced “battlefield tourism” that aims at attracting tourists to sites where some of the most important battles between the German and British forces were fought a century ago.