This sector, which is the largest provider of foreign exchange and employment in the country currently covers only 22% of the trade deficit, whereas in the 1970s until the 2000s, tourism receipts covered on average 54% of this deficit.
Sector inflows, meanwhile, fell from 3.5 billion dinars in 2010 to 1.808 billion dinars in 2016.
Similarly, the number of arrivals of European tourists fell from 3 million 800 thousand tourists in 2010 to 1 million 400 thousand in 2016.
Since the Tunisian revolution, this decline has been accentuated after the Bardo Museum attack (March 18, 2015), the Sousse attack (June 26, 2015) and the Tunis attack (November 24, 2015).
Responding to three questions from TAP news agency, Khaled Fakhfakh, president of the Tunisian Federation of Hotels (FTH) confirmed a recovery of the sector in early 2017, anticipating, during the year 2018, the realization of the same indicators than those of 2014, but fearing, however, to see measures relating to the tourism sector, proposed in the Finance Law (FL) 2018, block this recovery, particularly in the absence of financial incentives to ensure the upgrade of hotel units, 40% of which had to cease operations.
What is FTH’s response to the new taxes planned for the tourism sector under the draft FL 2018?
The FTH was surprised by the provisions of the finance bill governing the tourism sector, which offer taxes that penalize the entire sector and especially taxpayers who pay their taxes properly, including employees and organized businesses.
The FTH thus gave a counterproposal to the tax of 3 dinars imposed on the overnight stay. This is not the right moment to introduce this tax which will have to affect all the nationalities. It would be better to discuss it in 2018 and apply it the following year. On the other hand, the reactivation of the 30-dinar exit stamp which would have to be paid by foreign nationals except Maghreb would bring more to the State, i.e. close to 90 MD while the tax of three dinars on the overnight stay will bring only 65 MD.
The bill also imposes an increase in consumption duties on alcohol, which will benefit the parallel market sales channels and another 1% tax, applied on any payment of more than 5 thousand dinars made in cash. Other alternatives to this tax must be identified, especially since Algerian, Libyan and Tunisian customers pay in cash.
The FTH considers that the welfare contribution provided for by the draft Finance Act 2018 and which should concern natural and legal persons is inadmissible.
It will give its position on these regulations to MPs and members of the Finance Committee, raising awareness about their impact on the tourism sector.
Can we consider that the tourism sector is recovering?
This year, the tourism sector is starting to recover and I think that the year 2018 will be better. However, the question that remains to be asked is how can we upgrade our hotels and with which funds after seven consecutive years of crisis?
Admittedly, the debt of hoteliers is of the order of 4, 5 billion dinars, nevertheless, we do not ask for help but rather financial incentives that will allow us to renew, upgrade the Tunisian hotels and ensure also their financial restructuring, otherwise, with such a government attitude, very few hotels will remain active in the country.
During these seven years of crisis, even hotels belonging to strong groups have suffered, in terms of profitability, equity and financing capacity but they continued to invest, making investments in the order of 261 million dinars in 2016.
The upgrade does not only concern hotels but also the cleanliness, the animation, the cultural aspect and the development of our tourist products.
What is your vision for the future of the tourism sector?
A: The recovery of the sector is confirmed; however the shortfall in terms of exchange rate variation is terrible. Thus, Tunisian tourism generated, during the first nine months of 2017, tourist receipts of the order of 2.1 billion dinars, the equivalent of €727 million, while in 2014, the revenues amounted to 3.6 billion dinars, or €1.6 billion, with a euro / dinar exchange rate during that period of 2.27dt.
Overnight stays reached 15 million in the first nine months of 2017 compared to 18 million in 2016, 29 million in 2014 and 35 million overnight stays in 2010.
Regarding arrivals, Tunisia has welcomed 5 million 300 thousand tourists during the first nine months of 2017, the same level as the year 2015.
In 2014, the tourist flow amounted to 7 million 200 thousand tourists, so all these indicators are the beginnings of a recovery in 2018 and we are optimistic about achieving the same figures as in 2014.
