Hotel owners demand for tax waiver

TOURISM  HEALTH  VIRUS

KAMPALA - The tourism industry continues to feel the heat from the effects of the Covid-19 lockdown. Occupancy rates in hotels have plummeted to less than five percent across the country.

The business available, especially for hotels, is hosting quarantine victims and essential service staff who can afford the rates. Consequently, 90% of the staff (400,000) are at home without wages while challenged management struggles to meet their different statutory tax obligations and licensing.

"I will exhaust the fingers on both my palms counting all the taxes," laments Uganda Hotel Owners Association (UHOA) Chairperson Suzan Muhwezi.

She adds, "They include VAT, NSSF, PAYE, Hotel Tax, Local Service Tax, Cooperation tax, Withholding tax, bar licenses, swimming pool licenses, liquor licenses among many others. These come on the heels of UHOA members taking cost-cutting measures that delayed harsher action. The staff took their accumulated leave."

The business available, especially for hotels, is hosting quarantine victims and essential service staff who can afford the rates

 
According to UHOA CEO Jean Byamugisha, they have already presented a proposal to government to waive taxes. Their proposal includes a waiver on Pay As You Earn (PAYE) and National Social Security Fund (NSSF) for the period when hotel staff are not earning salaries, rescheduling of loans held by hotels in different banks for 12-24 months, creation of a credit line for hotels to borrow money at zero interest rate to revive hotel operations from the Uganda Development Bank (UDB) and a marketing budget to facilitate the Uganda Tourism Board (UTB), hoteliers, and tour operators to run a campaign to boost domestic tourism. 

"Although financially crippled, UHOA through her members contributed sh30M to the National Task Force Committee to purchase relief items

UHOA members are ready to resume in full swing. They will make their premises Covid-19 safe by cleaning the air conditioning units every week, and for every client, change the filters in the room. This is in addition to leaving the windows open so the air can be recycled," said Byamugisha. 

                           Hotel Africana is one of the hotels hit hard by the COVID-19 lockdown

 
UHOA is also playing a role in ensuring the government directives are followed. They are calling various destination buyers informing them of the regulations in place to curb the virus. 

"We live off tourism," summed up Byamugisha. "Without it, there is no business. Some schools of thought are advocating for faith and domestic tourism. But we need conventional traveller as well. The menu of attractions and the hotels in place remain under-utilized."