The retaining of VAT on the accommodation facilities has greatly affected the tourism sector in Uganda which has also lead to reduced Uganda safaris. This Vat has discouraged many tour operators to get out of business since the clients have cancelled the safaris because of the high accommodation rates.
The lodges and hotels have generally become expensive to the visitors who have at last been forced to withdraw their interest in carrying out safaris in Uganda. Therefore it’s advisable for the government and the members of parliament to come to an understating with the tour operators so that they can remove the VAT or try to reduce it.
The tour operators are finding a problem with the overseas tour companies who are not agreeing with the increased rates on the hotels. This has brought problems since many international tour operators have decided to quit the partnerships with the Ugandan tour operators hence affecting the safaris to Uganda.
The Vat issue has been in debate between the tour operators and the government officials for a long period of time which has not yielded any good result since some officials say that the VAT is off and others say it’s still on. This has confused the tour operators since the hotels and lodges have refused to remove the VAT. This has greatly reduced safaris in Uganda hence reducing the revenues of the country.
The tax burden has brought about problems in the tourism sector since many tourists have decided to go to other countries for safari visits since the tours in Uganda have been expensive due to the high VAT put on the accommodation sector.
Prime Uganda safaris & Tours updates 2013