Are you an AirBnB host and you have not registered for the Tourism Fund? The government is coming.
The Tourism Fund is set to meet with Airbnb Africa officials so as to identify investors who have not registered their businesses.
According to the fund, 40,000 AirBnbs are operating in Kenya. However, only 400 have been registered.
Registered businesses in the tourism sector are supposed to remit a 2% tourism levy to fund various tourism-related initiatives, infrastructure development, and promotional activities.
Tourism levy is a fee or tax imposed on tourists or visitors to a particular destination. It is typically collected by the government or local authorities and is used
All Airbnb hosts that aren’t registered are now asked to visit any nearest Tourism Fund office for registration
The purpose of the levy is to generate revenue that can be reinvested into the tourism industry to support its growth and sustainability.
The Kenya Revenue Authority (KRA) is charged with collecting the two per cent tourism levy from hotels and restaurants.
The move to hand over the collection of the levy to the KRA comes on the back of several State agencies outsourcing the services to the taxman, which is seen as more efficient in the task.
The taxman may now collect the charge on the gross sales derived from the sale of accommodation, food, drinks, and all other services offered in scheduled establishments.
According to the Auditor-General’s report for the fiscal year ended June 2020, the Tourism Fund collected an average of Sh2.5 billion in levy income before falling to Sh1.1 billion the following year as the Covid-19 pandemic harmed the hospitality sector.
The levy is collected from establishments that charge a minimum of Sh250 per person per night, including breakfast and any other services.
It is also levied on restaurants with annual gross sales of at least Sh3 million.
Airbnbs are an online marketplace that allows individuals to rent out their homes, apartments, or spare rooms to travelers. It has gained significant popularity in recent years as an alternative accommodation option for tourists, offering a more affordable and personalized experience compared to traditional hotels.
