Impact of the new VAT Increase

Photo of a Leopard in Botswana Descending a Tree© Bill Given

Last week, the Botswana government decided to raise the Tourism VAT tax from 10% to 12% effective April 1st. This was quickly met with a flurry of Botswana safari camp operators raising their prices by 2% for the rest of 2010. In some cases even bookings that have been paid in full are now being invoiced for the additional 2%.

Not All Botswana Safari Operators Raised Prices

One company, Footsteps in Africa, has gone against the tide and is honoring their rates throughout 2010 stating that a rate quoted is a rate honored! Fortunately The Wild Source utilizes Footsteps in Africa for a large percentage of our Botswana business, however, we are believers in offering a full range of products and have used 8 different Botswana ownership groups in the last year to provide access to all of the best camps to fit our clients diverse needs.

The Wild Source Prices Hold Firm

As such, quite a few bookings will be receiving an additional 2% hike in price. However, clients of The Wild Source can relax because we are following Footsteps in Africa’s lead and eating a little profit rather than passing on this additional cost to our valued clients. We would much rather have you be a loyal client who will refer us and return to Africa with us then worry about absolutely maximizing our profit by uncomfortably raising the price by a small amount.

Beyond that, rather than watch Botswana safari prices creep upwards on consumers The Wild Source will continue to offer 2010 Botswana safaris at the pre-VAT rate deducting that 2% off the top and in many cases we will discount well beyond that level in an effort to continue to provide exceptional quality Botswana safaris at a great value.

Here is a summary of the different Botswana operators response to the VAT increase:

• Footsteps in Africa – No change, is honoring their 2010 rates throughout the year
• Kwando Safaris – Will honor rates for any bookings that were confirmed through February 29th, has raised all rates by 2% for the rest of 2010
• Wilderness Safaris – All confirmed bookings, even if fully paid will be charged an additional 2%. Prices will be increased 2% for the rest of 2010.
• Great Plains -- All confirmed bookings, even if fully paid will be charged an additional 2%. Prices will be increased 2% for the rest of 2010.
• Sanctuary Lodges -- All confirmed bookings, even if fully paid will be charged an additional 2%. Prices will be increased 2% for the rest of 2010.
• Ker & Downey – Will honor rates for any bookings that were confirmed through February, has raised all rates by 2% for the rest of 2010
• Desert & Delta -- Will honor rates for any bookings that were confirmed through February 29th, has raised all rates by 2% for the rest of 2010
• Uncharted Africa – Will honor rates for any bookings that are paid in full by March 31st, prices will be increased 2% for all bookings paid for April 1st onward.