Lesotho: LTDC Collects M4 Million From Tourism Levies

The Lesotho Tourism Development Corporation (LTDC) has collected M4 million in levies since the introduction of the Tourism Levy Regulations, 2021, about 18 months ago.

The funds have been used to spruce up the LTDC’s corporate image and capacitate the Lesotho Council on Tourism (LCT), which supports tourism companies, among other things.

Additionally, the funds have been used to cater for the LTDC’s participation in the annual Africa Travel Indaba for two consecutive years.

The tourism levy is a tax paid by tourists for specific travel and tourism services offered in Lesotho.

The levy rate for accommodation entities is 1.5% of room rate.

Travel agents pay M50 per flight ticket while tour operators pay a 1.5%per charge, the same as event organizers per ticket.

The levy is collected by tourism and hospitality enterprises on behalf of the LTDC.

During implementation of the regulations, only 129 tourism players were registered for levy collection. However, the number has ballooned to 272 in 2024.

According to an official gazette on the Tourism Levy Regulations 2021, tourism enterprises providing accommodation services “shall charge the levy per night on each tourist”.

For tourism enterprises dealing in tourist attraction services “the levy shall be charged upon entrance of every tourist who enters the tourist attraction point”

“Travel agents or tour operators shall pay the levy from their monthly revenue while event mangers shall charge the levy for every event,” the gazette stipulates.

Anyone who is found guilty of contravening the regulations, commits an offense and is liable on conviction to a fine not exceeding M10 000, a six-month jail sentence or both.

LTDC Public Relations Manager, Molapo Matela, said proceeds from the levy had been utilized in the development of the tourism sector through signages, pamphlets, and flyers locally and internationally.

Mr Matela added that through the levy, the corporation had managed to fund its participation at the annual Africa Travel Indaba for the past two years “to expose the private sector to international markets”.

“A lot of facilities have registered for the tourism levy collection, and we would fairly say a big chunk of the enterprises that are meant to collect the levy are warming up to the idea,” Mr Matela said.