July 29, (THEWILL) – Disturbed by the seeming negative effects of multiple taxation imposed on tourism enterprises operating at the popular Oxbow Lake Swali, Yenagoa, Commissioner for Tourism Development, Hon. John Alla, has promised to build synergy with relevant revenue agencies and departments in the state to harmonise multiple levies on tourism enterprises.
Hon. Alla, while reacting to exorbitant levies reportedly imposed on small and middle tourism enterprises operators at the weekend, regrettably noted several negative effects on tourism enterprises, including increased operating costs, leading to higher costs, reducing profit margins and competitiveness, said excessive taxation could deter investment in tourism infrastructure and services, making tourism destinations less competitive compared to others with more favourable tax environments.
The newly appointed Commissioner for Tourism added that multiple taxation on tourism enterprises would certainly cause them to pass on their tax costs to the consumers, eventually leading to higher prices, which could potentially deter visitors at tourist sites, pointing out over-taxation could invariably lead to tax evasion, reducing government revenue and undermining the tourism industry generally.
“Multiple taxation can lead to reduced employment opportunities in the tourism sector because excessive taxation can hinder economic growth and development in tourism-dependent areas. Over-taxation can cause increased administrative costs, creating unnecessary administrative complexities, and diverting resources from core business activities to other areas.
“Over-taxation can also stifle innovation and improvement in tourism services and products. Excessive taxation can harm the overall reputation of tourism destinations and deter visitors. To mitigate these effects, the government could consider streamlining tax systems, reducing tax rates, offering tax incentives to tourism enterprises, implementing tax holidays, and enhancing tax administration efficiency.
“By adopting a more favourable tax environment specifically for tourism enterprises, the state government can support the growth and development of these tourism enterprises, which provide the needed experience for the visitors and even the residents, benefiting the local economy and communities alike”, Hon. John maintained.
Speaking on the reported ongoing indiscriminate springing up of unauthorised food vendor shops at Oxbow Lake, the Commissioner expressed disappointment over their mode of doing business, hinting that his ministry would soon work out plans to standardise the operations of the food vendors to ensure high-quality and enjoyable experiences for visitors to the lakeside.
It would be recalled that proper standardisation of the food vendors’ operations at tourist sites would involve developing and enforcing clear food sanitation guidelines and regulations to establish vendors’ licencing and certification programmes and conduct regular inspections and monitoring to provide training and education on food safety and sanitation.
Implementation of a quality control process would lead to setting up uniform pricing and menu standards, ensuring adequate waste management and disposal mechanism, implementing customer feedback and complaint system, in addition to establishing a system for tracking and managing vendor performance reviewing and updating standards regularly.
Benefits of standardisation include improved food safety and quality, enhanced visitor experience and satisfaction, increased efficiency and organisation, better management of vendors and their operations, protection of the tourist site’s reputation, triggered support for local businesses and economies, in compliance with regulations and laws to reduce risk of foodborne illnesses, improved customer service as well as increased visitor loyalty and repeat business.
Amos Okioma is a Correspondent at THEWILL
