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Message: [QUOTE="Munyaradzi Mafaro, post: 82567, member: 636"] A tourism group decided that customers will pay more for everything except hotel rooms. Victoria Falls Safari Collection announced it would absorb a small tax increase on accommodation rates. However, the company will pass the full new tax burden onto activity bookings, food, and transportation services. This follows a national budget that raised the value-added tax rate by half a percentage point. The hospitality group operates four major properties in the Victoria Falls area. These include the Safari Lodge, the Safari Club, the Suites, and Lokuthula Lodges. The business communicated its new pricing structure to trade partners via email. It stated the tax increase on pre-agreed room rates would not be charged to clients. The company explained that absorbing the increase in rooms was financially feasible. Applying the same policy to activities and transfers was not possible. Those services were previously not subject to the value-added tax. They will now carry the full standard rate under the new law. All food and beverage pricing will also include the higher tax rate. Bookings for packages or special deals made before the change are affected. The additional tax will be added to the final cost for any included activities or transfers. The company expressed regret over this necessary adjustment. A national tourism council had warned that the tax hike would raise prices. It argued this would hurt the sector's competitiveness during a period of growth. International interest in visiting the country increased after a major publication endorsed it. Government projections anticipate a rise in both domestic and international visitor numbers. The council suggested such financial changes could hinder the expected growth. Victoria Falls is the country's primary tourist destination. Significant price increases for experiences there could impact overall travel decisions. The hospitality group's move illustrates how businesses are adapting their financial strategies. [/QUOTE]

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