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

These funds have been allocated to enhance the corporate image of the LTDC and to strengthen the capabilities of the Lesotho Council on Tourism (LCT), which provides support to tourism enterprises, among other initiatives.

Furthermore, the funds have facilitated the LTDC’s participation in the annual Africa Travel Indaba for two consecutive years.

The tourism levy represents a tax imposed on tourists for specific travel and tourism services available in Lesotho.

The accommodation entities are subject to a levy rate of 1.5% based on the room rate.

Travel agents are required to pay M50 for each flight ticket, while tour operators and event organizers are charged a levy of 1.5% per ticket.

The levy is collected by tourism and hospitality businesses on behalf of the Lesotho Tourism Development Corporation (LTDC).

Initially, only 129 tourism operators were registered for levy collection during the implementation of the regulations; however, this number has increased to 272 in 2024.

As stated in the official gazette regarding the Tourism Levy Regulations 2021, tourism enterprises offering accommodation services “shall impose the levy per night for each tourist.”

For tourism enterprises that provide tourist attraction services, “the levy shall be applied upon the entrance of every tourist to the attraction point.”

The gazette further specifies that “travel agents or tour operators shall remit the levy from their monthly earnings, while event managers shall collect the levy for each event.”

Individuals found guilty of violating these regulations will be deemed to have committed an offense and may face a fine of up to M10,000, a six-month imprisonment, or both.

Molapo Matela, the Public Relations Manager of LTDC, indicated that the funds generated from the levy have been directed towards the advancement of the tourism sector through the creation of signages, pamphlets, and flyers both locally and internationally.

Mr. Matela also noted that the corporation has successfully financed its participation in the annual Africa Travel Indaba for the past two years “to provide exposure for the private sector in international markets.”

He remarked that a significant number of facilities have registered for the tourism levy collection, and it can be said that many enterprises obligated to collect the levy are becoming increasingly receptive to the initiative.