HOTELS OWE K10M IN UNPAID LOANS – AG REPORT

OVER90 hotels and lodges have failed to pay back loans total ing over K K10.3 million acquired from govern ment under the Tourism Development Credit Facility (TDCF), the 2020 Auditor report has revealed.

According to the latest AG report, it was revealed that out of a total amount of K13,823,366 owed to the min istry by 96 institutions that benefited from the facility, amounts totaling K3,479,573 were collected leaving a bal ance of K10,343,793 as at 31st

July 2021.

It was further observed that the amounts had been outstanding for periods rang ing from eight to 16 years from the contractual due dates.

The TDCF which was set up in 2003, as a revolving fund under the Department of Tourism is aimed at enhancing and increasing participation of local entre preneurs in tourism devel opment through provision of easy access of start-up capital.

Meanwhile, 594 accom modation establishments in the country are being run by managers who do not have practicing certificates resulting in government rev enue loss in amounts totaling K1,157,700.

According to the Hotel Manager Registration Fees Section 59 of the Tourism and Hospitality Act No. 13 of 2015, all hotel managers are required to obtain a certificate of registration at a prescribed fee. The report revealed that as at 31st August 2021, no action had been taken by the ministry against the default ers. The government also lost amounts totaling K317,863 and US$ 855,956 from var ious hunting outfitters and tour operators as at August 31, 2020 in payments of land-user-rights fees.