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Tourism operators under fire for not remitting levies

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The levies would help the tourism industry to market some of its attractions such as these elephants in national parks
The levies would help the tourism industry to market some of its attractions such as these elephants in national parks

The country’s tourism operators have come under fire for not remitting levies for a marketing fund which is ironically meant to be used to market Malawi and prompt the sector’s business.

A press statement from the Ministry of Tourism and Culture released last week and signed by director of tourism Patricia Liabuba notes that there are a number of operators who although having received the levies—pegged at one percent of charges—do not remit them.

The ministry also advised operators who have not responded to notices about non-compliance that the government will withdraw their licences.

The ministry, however, was not able to provide the amount of levies that have not been paid by the operators.

But Malawi Tourism Council (MTC) executive director Sam Botomani in an e-mail on Monday said some operators may have genuine reasons for failing to remit the money while others merely use the money for their own purposes.

“Normally, all the money collected for the Levy should be remitted to the Ministry of Information, Tourism and Civic Education by a certain date already stated in the relevant regulation. Obviously, some transactions are not done in cash, and these may cause problems if they are not paid by the date the funds are supposed to be remitted to the ministry,” said Botomani.

He, however, noted that many unpaid debts may cause problems for the operators to remit the levy or at least at the right time. But Botomani added that it is wrong not to remit anything at all for a long period.

He said MTC encourage members to comply with laws of the country and appealed to members to pay as the money is used to market Malawi which will also promote their businesses.

Tourism is one of the potential sectors to generate revenue, employment, improve infrastructure, and promote Small and Medium Enterprises (SMEs) as well as conserve wildlife and culture.

Analysts note that the sector has direct linkages with other sectors of the economy with the government committing itself to marketing and promoting the sector by intensifying marketing of the country as a preferred tourist destination.

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