Tourism Levy Regulations,2021

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REPORT ON TOURISM LEVY REGULATIONS, 2021
PRESENTED
BY
THE PORTFOLIO COMMITTEE ON NATURAL RESOURCES, TOURISM AND LAND CLUSTER
National Assembly Phone: +266 22323035 P. O. Box 190 Fax: + 266 22310434
Maseru 100

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  1. INTRODUCTION
    On Monday, 22nd March, 2021 the Honourable Minister of Tourism, Environment and Culture tabled the Tourism Levy Regulations, 2021. The Regulations were referred to the Portfolio Committee on the Natural Resources, Tourism and Land Cluster for consideration in terms of Standing Order No.100 (3). The Committee invited the Hon. Minister of Tourism, Environment and Culture to a briefing session in accordance with Standing Order No. 101 (2).
    The Committee, therefore, presents this Report to the House for consideration.
  2. MINISTERIAL BRIEFING
    The Tourism Levy Regulations, 2021 are made pursuant to Sections 18A and 18 B of Tourism Act of 20021 .
    The Minister of Tourism, Environment and Culture explained that these Regulations seek to implement the Tourism Act, 2002 which provides for the establishment of the Tourism Development Fund. The Fund will act as a catalyst for the tourism sector to make more meaningful contribution to the economic growth, create employment opportunities; augment income earning; stimulate revenue generation; and promote growth and development that would impact positively on Lesotho’s economy. The Regulations will also address issues of capacity building in the private sector, product development, marketing and promotion of Lesotho as a tourist destination.
    The Regulations will provide for the following:
     collection of the tourism levy from related tourism businesses;  how the tourism levy will be used;

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 classification for payment of tourism levy; and  Tourism levy rate.
The Regulations are aligned with the National Tourism Policy, National Strategic Development Plan II and Sustainable Development Goal 8.
The total budget for the initial year to set up the office will be M2, 293,000.00. The amount is not budgeted for in the year 2021/22. However, the program will be implemented this year.
COMMITTEES’ CONCERNS
The Committee noted with concern the low international levy rates stipulated in Schedule II of the Subordinate Law; and is of the opinion that the Ministry will not be able to generate revenue.
CONCLUSION
The Committee resolved that all the provisions of the Tourism Levy Regulations, 2021 be disallowed.

  1. RECOMMENDATION
    The Committee recommends that the Subordinate Law be disallowed and this report be adopted by the House.

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MEMBERS OF THE COMMITTEE

  1. Hon. K. Mathaba (Chairperson) 2. Hon. T.C. Lerafa 3. Hon. T. J. Molise 4. Hon. P. S. Molefi 5. Hon. L. G. Motšoane 6. Hon. J. M. Sello 7. Hon. S. S. Sekhamane 8. Hon. M. M. N. Moremoholo 9. Hon. T. Ramatla 10. Hon. M. Lenkoane 11. Hon. L. D. Kompi 12. Hon. M. ‘Muso 13. Hon. M. Sello 14. Hon. M. ‘Molotsi 15. Hon. T. G. Manyooko 16. Hon. N. E. Kaya 17. Hon. T. Kholumo 18. Hon. S. Ntsekele 19. Hon. T Tṧolo 20. Hon. M. Moletsane