Africa’s Sky-High Taxes Clip Tourism’s Wings: AFRAA 2024 Report

by Oluwafemi Kehinde

Air travel in West and Central Africa remains prohibitively expensive, mainly due to sky-high taxes, according to the African Airlines Association’s (AFRAA) 2024 report. Travel News Africa reports, citing AFRAA, that intercontinental flights in these regions carry average taxes of $109.49 and $106.62 per passenger, respectively, far exceeding the African average of $68. 

According to Travel and Tour World, Gabon leads with a staggering $297.70 per passenger, followed closely by Sierra Leone at $294 and Nigeria at $180, making these countries among the most expensive for air travel on the continent.

Africa’s Sky-High Taxes Clip Tourism’s Wings: AFRAA 2024 ReportThese exorbitant taxes inflate flight costs, creating a sharp divide compared to Europe and the Middle East, where taxes are often less than half as burdensome. Despite Africa contributing just 2.2% to global air traffic, its passengers face taxes that can account for up to 55% of the base fare, placing a heavy financial strain on travellers. This pricing gap presents a significant challenge for African travel agents, who struggle to create affordable travel packages in a competitive global market.

The AFRAA report highlights the crucial need for tax reforms aligned with the International Civil Aviation Organisation (ICAO) standards to enhance air accessibility and connectivity. High taxes deter international visitors and stifle intra-African travel, hampering regional tourism and economic growth. For travel agencies, these inflated costs result in fewer bookings, thereby limiting opportunities for business growth and market expansion.

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Globally, organisations like the UN World Tourism Organisation (UNWTO) champion policies to make travel more accessible and sustainable; however, Africa’s steep taxes create barriers for price-sensitive travellers. This disconnect hinders the continent’s ability to capitalise on the global tourism recovery, thereby stifling its economic potential. The current tax structure, where charges often exceed the value of services provided and are redirected to non-aviation purposes, is unsustainable and counterproductive.

The AFRAA advocates for transparent, cost-based, and justifiable charges to foster a robust aviation sector. Excessive taxation not only burdens airlines but also ripples across the travel ecosystem, affecting hotels, tour operators, and other tourism-related businesses. This practice poses a threat to the viability of Africa’s travel industry and its contribution to economic development.

Efforts to transform Africa’s aviation landscape, such as the Single African Air Transport Market (SAATM), aim to liberalise air travel and enhance connectivity across the continent. However, excessive taxation undermines these initiatives by discouraging airlines from expanding routes and limiting passenger traffic, stalling progress toward a more integrated aviation network.

The AFRAA’s findings are a clarion call for African governments and aviation stakeholders to act. Reforming excessive taxation is not merely about reducing costs—it’s about unleashing Africa’s vast tourism potential, fostering economic growth, and building a more connected and thriving travel industry for the continent’s future.

The African Airlines Association (AFRAA) 2024 reports highlight the significant burden of high taxes and charges on aviation across Africa, with Nigeria ranking as the third most expensive country for air travel fees, where passengers pay an average of $180 in taxes, charges, and fees per international ticket. These high costs, particularly in West and Central Africa, where over half of the countries charge more than $100 per ticket, contribute to elevated airfares, stifling the aviation sector’s growth and its potential to drive economic and social development. Below, I elaborate on the need for Nigeria and Africa to reduce these taxes and discuss the potential impacts on the tourism and travel sector, drawing on AFRAA’s findings and broader industry insights.

AFRAA’s 2024 reports, including the Taxes and Charges Study Review, note that high taxes and fees significantly increase airlines’ operational costs, reducing profitability and limiting network expansion. In Nigeria, the Nigerian Aviation Handling Company (NAHCO) has flagged excessive taxes as making Nigerian airports among the most expensive globally for foreign airlines to operate. 

Across Africa, countries like Gabon ($298 per passenger) and Sierra Leone ($294) impose some of the highest departure taxes, with West Africa averaging $110 per passenger, up from $97 in 2022. These costs are often passed on to passengers, inflating ticket prices and reducing demand.

The slow implementation of the Single African Air Transport Market (SAATM), as noted in AFRAA’s first half-year survey, is compounded by high taxes and restrictive policies. These hinder the liberalisation of air travel, limiting the granting of 5th Freedom Rights and increasing costs for intra-African routes. Only 19% of intra-African routes offer direct flights, forcing passengers to endure longer, costlier journeys, which discourages regional travel and connectivity.

Lowering aviation taxes would reduce ticket prices, making air travel more accessible to a broader population. AFRAA’s Q3 2024 report projects a 15% growth in passenger traffic for African airlines in 2024, driven by rising demand. Reducing taxes could amplify this growth, particularly for intra-African travel, which accounts for 44% of international traffic. 

Affordable airfares would encourage more Africans to travel within the continent, boosting regional tourism and cross-border trade. For Nigeria, lower taxes stimulate domestic travel, supporting its tourism sector, which is already benefiting from a new e-visa system to streamline visitor access.

Tourism is a significant driver of economic activity in Africa, supporting 8.1 million jobs and $75 billion in economic activity in 2023, according to aviationbenefits.org. High aviation taxes deter tourists, particularly in countries like Nigeria, where travel costs are prohibitive. Reducing taxes could attract more international visitors, especially to destinations like Lagos or Abuja, enhancing revenue for hotels, restaurants, tour operators, and local businesses. Initiatives like the proposed single tourist visa for Angola, Botswana, Namibia, Zambia, and Zimbabwe demonstrate how easing travel barriers can boost tourism. Lowering taxes would complement such efforts.

Aviation has a significant multiplier effect, with every $1 of gross value added by the sector supporting $5.30 of economic activity elsewhere in Africa. Lower taxes would increase passenger volumes, creating jobs in tourism, hospitality, and related industries. IATA’s Focus Africa initiative emphasises that a stronger aviation sector can drive broader economic and social development. In Nigeria, reducing taxes could support the government’s push for aviation reform and tourism growth, aligning with policies like the Nigeria Visa Policy 2020, which aims to streamline travel.

 

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FAQs

1. Why are air travel taxes so high in West and Central Africa?  

High taxes in West and Central Africa, averaging $109.49 and $106.62 per passenger, stem from government policies that impose excessive charges, often unrelated to aviation services. Countries like Gabon, Sierra Leone, and Nigeria lead with taxes as high as $297.70, far exceeding the African average of $68, making air travel disproportionately costly.

2. How do high taxes affect Africa’s tourism industry?  

Excessive taxes inflate flight costs, deterring international and intra-African travellers. This reduces booking volumes for travel agents, limits tourism revenue, and hampers economic growth, as price-sensitive travellers opt for more affordable destinations outside Africa.

3. What is the Single African Air Transport Market (SAATM)?  

The SAATM is an initiative to liberalise air travel across Africa, promoting competition, reducing fares, and enhancing connectivity. However, high taxes undermine its goals by discouraging airlines from expanding routes and limiting passenger traffic.

4. What reforms does the AFRAA propose to address high aviation taxes? 

The AFRAA advocates for transparent, cost-based, and justifiable charges aligned with ICAO standards. This would involve reducing excessive taxes, ensuring charges reflect actual aviation services, and redirecting funds to improve infrastructure and connectivity.

5. How do Africa’s air travel taxes compare to those of other regions?  

Africa’s taxes, which can reach 55% of the base fare, are significantly higher than in Europe and the Middle East, where taxes are often less than half as burdensome. This disparity makes African air travel less competitive globally, which in turn impacts tourism and economic development.

Going by the African Airlines Association’s (AFRAA) 2024 report, elaborate on the need for Nigeria and Africa to reduce high taxes on aviation. Discuss how this reduced taxation could impact the tourism and travel sector.

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