Following the postponement of budget speeches and a temporary suspension of proposed 2% VAT growth, a key voice in the South African tourism industry is that such tax hikes are the country's most important economic factors. We focus on what it means to one thing. SATSA CEO David Frost commented: This is one of our biggest selling points in attracting international visitors. A 2% VAT hike seriously undermines this benefit, making travel to South Africa more expensive when price sensitivity was at an all-time high. ”
“Middle class travelers around the world are one of our biggest growth opportunities. These travelers are cost-conscious. We carefully compare destinations before booking. South Africa is more likely to have more opportunities to do so. If it gets significantly more expensive due to a high tax, they simply choose other destinations that offer better affordable prices.”
“Tourism is not an industry that can absorb endless increases in costs without consequences. Airlines, hospitality businesses, tour operators, small tourism entrepreneurs cannot continue to raise prices. They lose customers. Rifts. The effect is devastating: fewer arrivals produce less work, lower local businesses' revenues, and ultimately fewer taxes collected over the long term.”
“If the government repeatedly considers tourism as a major driver of economic recovery and job creation, it must abandon its plans for increased VAT for tourism-related services, as it has repeatedly stated, and from the industry. Instead of taxing success, we need to implement policies that make South Africa more attractive to travelers.
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Source: Travel Daily News
