Social media tax worries players in tourism sector

Players in the tourism industry have expressed concern that the newly introduced social media tax could cripple the sector.

A new Shs 200 per day social media tax took effect on July 1. The tax enables one to access apps like WhatsApp, Facebook, Instagram, Snapchat etc...

Tourism in Uganda is one of the sectors where government expects to earn big this financial year, but to earn from the sector investment is one those key requirements and marketing is such a big component.

The players in the sector have regularly used social media to market their services while the clients visiting the country are always encouraged to share the experience on the social media platforms.

During the opening of the hotel and restaurant expo where Ugandans are expected to see what the sector has to offer, players expressed discomfort over the tax.

Mohammed Nsubuga, the operations manager Africana Hotel questioned why government had introduced the tax.

Jean Byamugisha, the executive director of Uganda Hotel Owner’s Association said that the tax will have a negative impact on the hotel business thus increasing the charges.

Players in the tourism sector say paying Shs 200 a day may not be a problem but the question remains whether the target audience will be able to access the service.