The tourism industry will soon see the incentives it has been enjoying for years come to an end.
The industry has been enjoying incentives that included reduced fee on visa for tourists coming to the country, a charter flight subsidy programme that pays airlines bringing tourists to Mombasa and Malindi for tourism enhancement in the regions, among others.
A deal between the National Treasury and the International Monetary Fund (IMF) could see the government put a stop on these incentives.
The deal giving Treasury continuous access to IMF's Sh150 billion cautionary credit facility requires the Government to do ways with tax holidays across different sectors of concern, among many conditions resulting from the deal.
Tourism Professional Association (TPA), National Secretary, Sam Ikwaye has said such a deal will prevent the industry from growing. He said the incentives has been positive to the industry which has led to the rehiring of employees that were laid off few years back.
"It is bad news. The industry needs another three to five years to stabilise," said Ikwaye, as quoted by the Standard.
Hoteliers who are rejecting the deal, yesterday lamented that they are currently paying a number of licenses to different agencies.
"Currently we pay 16 per cent VAT, 20 per cent catering levy and multiple licenses like Sh10,000 county levy and Sh30,000 to TRA (tourism regulatory authority)," said Mr Faridi Abdhallah, General Manager Eagle Palace Hotel, Nakuru.