Friday, March 31, 2017

Kenya: Vat Exemption for Locally Assembled Tourist Vehicles As Hoteliers Get Credit Facility

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Nairobi — The government has announced the exemption of Value Added Tax (VAT) for locally assembled tourist vehicles. Treasury Cabinet Secretary Henry Rotich says the move is aimed at encouraging tourist operators to buy vehicles locally at a lower cost.

“The tourism industry has been growing steadily despite adversities experienced in industry. In order to promote tourism further, and to make Kenya a tourism hub, I propose to exempt from VAT locally assembled tourist vehicles,” he announced. He says apart from promoting tourism sector, the measure has taken into consideration current policy of the government to encourage local motor vehicle assembly.

Meanwhile, the government has allocated Sh2.7 billion to boost the tourism sector in this year’s budget where Sh1 billion will be used for full sector recovery, Sh1billion for sustaining new markets, Sh600 million for capital lending to hoteliers and Sh100milion to finance the revival of Fort Jesus in Mombasa.

 He, however, noted the continued improvement of the sector which has previously faced pressure due to security challenges.

“The tourism sector has picked up with significance rise in the conference activities and foreign tourist arrivals. To further realize the multiple benefits of a robust tourism sector the government working with the key shareholders in the industry, will continue to promote and develop new areas of tourism, including sports, beach and medical tourism,” he said.

 The number of tourists to Kenya grew by 16.1 percent in 2016 with international arrivals for January to October 2016 by air and sea closed at 729,682 compared to 628,345 in 2015.

He reiterated government commitment to fully revive Kenya Airways (KQ).

“Recognizing the importance of aviation to the industry, the government is keen to keep the positive trajectory 5that has been achieved at Kenya Airways and is working with other shareholders to ensure that the ongoing efforts, to restructure the KQ balance sheet, and place the company on a long-term sound financial footing is achieved,” Rotich assured.



Tuesday, March 28, 2017

Why $2 Billion worth of Tanzania Border should not be Reopened for Tourists


 Why $2 billion worth of Tanzania border should not be re-opened for tourists
Key players in Tanzania’s tourism industry have smelled a rat in Kenya’s 10-year National Tourism Strategy aimed at recovering the sector, which has been hardly hit by insecurity and infrastructure challenges, in the northern neighboring country.

Exerting pressure on Tanzania for it to re-open its Bologonja border with Kenya is high in the blue print, which the country’s inter-ministerial committee comprising Tourism, Interior and Coordination of National Government and Transport and Infrastructure has hatched.

Acting Chief Park Warden for Maasai Mara Game Reserve, Emmanuel Kinaiya assured a Tanzania’s fact-finding mission comprising journalists that high-level bilateral talks to re-open the Bolongoja border were progressing well.

While the Narok County is already rehabilitating the Sand River Gate office, which were abandoned about 40 years ago, construction of an immigration office to clear tourist travelling between Maasai Mara Game Reserve and Serengeti National Park by the central government is underway.

However, the move has squarely opposed by the Tanzania’s tourism stakeholders as General (rtd) Gorge Waitara, the Tanzania National Parks (TANAPA) Board Chairman, said reasons which led to the closure of the $2 billion worth Bologonja border for tourist traffic 40 years ago were still valid to date.

Gen Waitara was commenting on the Kenya government’s latest plan to establish a customs and immigration office at the Sand River gate on its border with Tanzania to ease the movement of tourists between its Maasai Mara Game Reserve and Serengeti National Park.

Kenya’s tourism Cabinet Secretary Najib Balala was recently quoted as saying that the construction of the $1 million project would start soon to serve tourists travelling between Maasai Mara and Serengeti.

The Kenya Cabinet Secretary as explaining that the immigration office would clear tourists from Serengeti National Park who wanted to cross to Maasai Mara Game Reserve or those from Maasai Mara who wanted to cross to Serengeti.

“Tourists will no longer need to travel all the way to Wilson Airport in Nairobi to go through the immigration procedures before being allowed into the Mara,” said Balala.

 Balala complained that currently tourists had to use the Narok-Nairobi or Kisii-Migori-Isebania routes to access the Namanga border point to Tanzania.Gen Waitara admitted to have heard of the neighboring country’s plan but doubted if both countries had at all agreed to have immigration offices built on either side. “Otherwise, how will tourists enter the Tanzanian side,” he queried.

“The trend is that tourists from Maasai Mara will enter Serengeti and return. They will never stay on our side,” observed Gen Waitara, stressing that Tanzania would not benefit from such tourists. “I’ve also read that they want to construct a tarmac road to the Sand River Gate, but there are no people in need of such a road on both sides,” he wondered.

Kenyan environmental activists were up in arms in recent years over the Tanzania government’s decision to pave the road which passes through Serengeti to ease haulage of passengers and goods to among Arusha, Manyara, Mara and Shinyanga regions.

Gen Waitara cautioned that a road passing through Masai Mara Game Reserve would end up promoting many other activities apart from those directly linked to tourism, including smuggling, and compromising the sustainability of the attractions altogether.

“We advise our government to consider these side effects when looking for the lasting solution for the matter,” he said.

Allan Kijazi, the Tanapa Director General, said the authority would never allow tourists to cross to Serengeti through Bologonjain respect of the government’s stance that the border was deregistered.

“In principle, the government’s directive is accepted internationally because it conforms to that of the World Tourism Organization (UNWTO) which says tourism should benefit all stakeholders involved in the sector,” Kijazi explained.

He said by continuing to use the Namanga border, residents of Namanga, Karatu, Mtowa Mbu, Arusha and Manyara Region at large would continue benefiting from tourists’ expenditure.

“Otherwise, many investments in those areas whose economic growth heavily relies on tourism will be jeopardized,” said Kijazi, adding that Ngorongoro Conservation Area would also be negatively affected.

“These resources belong to Tanzanians; any decision to be reached must ensure the local people benefit from it. We must look at wide interests of the nation and its people,” he stressed. Kijazi said Tanzania had agreed to adhere to low volume tourism, which attracted few tourists, but brought in much money.

“Our neighbors, particularly Maasai Mara’s tourism policy, attracts mass tourists whose payment is paltry. Once we open the Bologonja border, we’ll allow a big number of tourists from Masai Mara to enter Serengeti,” he cautioned.

He said mass tourism would end up destroying the environment with little benefits accrued from Serengeti and distributed among the tourism value chain and the national coffers as well.

Mervin Nunes, a Nairobi-based former aide of the Father of the Nation, Mwalimu Julius Nyerere, on tourism affairs, said the border was until 1977 a convenient route for tourists yearning to visit the Serengeti-Masai Mara ecosystem stretching over 24,000 square kilometers of land.

One of the Tanzania’s long serving tour operator, Mr. Marvin Nunes, recalled that after the collapse of the first East African Community (EAC) on February 5, 1977, Tanzania closed all its border posts with Kenya for nearly seven years.

The Tanzania’s change of heart in mid 1980s allowed main highway border crossing points to be opened, save for the Bologonja border, which remained closed for tourists’ traffic to date.

“Before the borders were closed, we had just a handful of Tanzania tour operators,” Mr. Nunes said.The international tour companies overseas were convinced that the major attractions sold under the defunct EAC like Kilimanjaro, Tarangire, Manyara, Ngorongoro and Serengeti were actually in Kenya and that the clients did not even realize that they had entered and exited Tanzania, he explained.

Nunes said the biggest gain the country had since achieved from the Bologonja border closure was identification of its world-famous attractions with destination Tanzania. “Statistics now reveal that tourism is the highest foreign exchange earner to this nation and one of the highest sources of employment,” Nunes said.

He added that more airlines were landing at Kilimanjaro International Airport (KIA) and that Arusha Airport had become a hub for domestic carriers. “Creating additional routes with our neighbors will only help to boos traffic to Jomo Kenyatta International Airport (JKIA) and dilute air traffic at KIA, giving current airlines a reason to pull out of KIA,” he cautioned.

Nunes said letting Kenyan tour vehicles in Serengeti would lead to a displacement in the number of Tanzanian tour operators and reduce foreign exchange earnings and revenue for the taxman.

“With overwhelming poaching going on in the country (Tanzania) and with our lack of adequate manpower to combat this menace, the reopening of the Bologonja could well be an additional entry and exist point for smugglers to have a field day,” he quipped.

He said Sirari was the nearest border to Serengeti which both Tanzania and Kenya tour operators were using for their full advantage. “As many as 50 vehicles have been picking up and dropping tourists. This is one of the Tanzania’s aim to spread the cake of tourism to other parts of the country,” said Nunes, stressing:

“Tanzania has to once and for all let Kenya know that Bologonja is not a subject up for discussion. This border has stayed closed for 40 years; Tanzanians do not need it reopened as we are doing very well with it closed.”

Wilbard Chambullo, the TATO’s chairman, said Kenyan tourism stakeholders’ demands to shorten tourists’ routes were baseless, as in so doing visitors would spend less money.

“We have roads and airports, tourists can use any of these options to explore the attractions effectively,” said Chambullo, adding that qualities of attractions between Maasai Mara and Serengeti were poles apart and that Tanzania would never gain anything by opening the Bologonja border.

“A visitor should arrive specifically for Tanzania, we should not allow him to spend his money in Kenya and come to Tanzania to keep change,” he said. He advised the government to consider the Bologonja border deregistered and inexistent for the sake of the debate to be closed once and for all. “Let our offspring open the border; over our dead bodies, we don’t need it at all,” he stressed.

Henry Kimambo, the Tato Vice Chairman, said should the government reinstate the border against Mwalimu Nyerere’s statement then that he had thrown the key to the ocean; the tourism value chain would be greatly disturbed.

If approved, the decision will ignore Mount Kilimanjaro, curio shops, ongoing cultural programs at Mtowa Mbu, Tarangire and Manyara national parks as well as Ngorongoro Conservation Area in favor of the meager income from Serengeti alone.

He said much as the tourism value chain currently created many jobs, Tanzania must prepare itself for addressing an unemployment crisis before the country opened the Bologonja border.

Sirili Akko, the Tato Executive Secretary, observed that all Tanzania’s national parks were surrounded by buffer zones and that if an immigration office, schools and other structures were built at the Bologonja border, they would leave Serengeti without one, the move which would greatly impact on the world’s heritage site.
 

Monday, March 13, 2017

Tanzania and Mauritius Partner to promote Tourism

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On Saturday, Tanzania and Mauritius signed a one-year deal to promote respective national tourism destinations globally.

The agreement was forged by the Tanzania Tourist Board (TTB) and Mauritius Tourism Promotion Authority (MTPA)  at the ITB global tourism showcasing event in Berlin. Tanzania was represented by TTB managing director Devota Mdachi, while Mauritius was represented by director of MTPA Kevin Ramkaloan.

"It is obvious that Tanzania is the only country in Africa endowed with exclusive and spectacular tourist attractions where one could enjoy and become more excited. Air Mauritius which is a Mauritius National Carrier is also part of the signed agreement as a partner airline of MTPA," Ramkaloan said.

Mdachi explained that the pact is meant to draw more visitors from as far as US, Australia, China, India and Europe. She added that both organisations have agreed to join forces in promoting their countries for the mutual benefits that their respective countries will gain. The organisations have targeted separate needs – Mauritius is being celebrated for its beach holidays, whereas tourists are encouraged to visit Tanzania for its wildlife and adventure safaris.

"Our commitment is to promote Tanzania and Mauritius as a twin tourist destination so that tourists visiting Mauritius can as well visit Tanzania to experience other unique attractions available in the country such as varieties of wildlife in National Parks, Mount Kilimanjaro, and Ngorongoro crater," Mdachi said.

Thursday, March 9, 2017

Tanzania: Proposed Bagamoyo-Mombasa Highway for Construction Soon

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STUDY for the proposed multinational highway, which will link the East African Coastline treading Kenya and Tanzania from Mombasa to Bagamoyo, has been completed. East African Community (EAC) is finalising plans for the transnational highway, which measures 450 kilometre-long, and expected to cost 600 million US dollars.

The highway moves from Malindi, through Mombasa and Lunga Lunga on the Kenyan side, before crossing into Tanzania (Tanga), through Pangani and Saadani to Bagamoyo. The project was the centre of deliberations between EAC Secretary General, Ambassador Liberat Mfumukeko and Executive Directors of the African Development Bank (AfDB) over the weekend when the high powered delegation of 10 directors paid a courtesy call at the EAC Secretariat here.

During their mission to EAC headquarters, AfDB directors also discussed the bank's collaboration with the regional block since the signing of a cooperation agreement in 1998. The agreement has resulted in the funding of several regional projects by the bank, mainly in the transport and energy sectors.

The AfDB had agreed to fund the Malindi-Mombasa-Tanga to Bagamoyo Highway and that it would allocate the first tranche of money for the construction, which is expected to start anytime from now and take three years to completion. The road project will entail the rehabilitation of the 250- kilometre Malindi-Lunga Lunga Road and upgrading to bitumen standard the 175-kilometre stretch that links Tanga to Bagamoyo.

The coastline road is expected to boost regional integration, cross-border trade, tourism, and socioeconomic development, as well as improve road transport infrastructure along the Kenya and Tanzania coastlines, particularly between Mombasa and Bagamoyo.

Apart from the proposed Malindi-Bagamoyo road, AfDB also funded the Arusha-Namanga- Athi River road whose construction was completed in 2012 and the ongoing Arusha-Holili and Taveta-Voi road, which is so far completed on the Kenyan side and construction continues on the Tanzanian side.

Wednesday, March 8, 2017

Hollywood Actor Will Smith visited Tanzania

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Prominent Hollywood actor Will Smith arrived in Tanzania yesterday where he took the chance to engage with his fans. After his arrival at Kilimanjaro International Airport he took photos with workers who could not hide their excitement and also he visit Serengeti National Park. It remains unclear for how long he will be touring the East African country with his next destination yet to be disclosed.

According to online sources Willy Smith is on short holiday a break to Africa, where he had visited Egypt on Sunday. They paid a visit to the Giza Plateau, where they meet renowned archaeologist Zahi Hawass, who guided the family on a tour around the Sphinx and inside the Great Pyramid of Khufu. Using his private plane on his African tour, his tour started in Morocco before heading out to Egypt on Sunday evening.

Smith was nominated for the Oscars twice. The first time was in 2002 for his film “Ali”. The second time was in 2007 for his leading role in “The Pursuit of Happiness”.

Thursday, March 2, 2017

Tanzania to Attend Global Tourism Expo in Berlin

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Tanzania is set to take part in the ITB Berlin, the world’s major tourism trade fair scheduled for March 8, a senior official said Tuesday.

Geoffrey Tengeneza a senior public relations officer with Tanzania Tourist Board (TTB) said that among other things, the east African nation has lined up the famous Lateoli footprints as a priority area at the forthcoming global tourism fair- Internationale Tourismus Borse (ITB) show slated for Berlin, Germany.

He said that the country will bank on the legendary footprints, believed to belong to earliest human beings who lived in northern Tanzania nearly 4 million years ago, in Laetoli area within the Ngorongoro Conservation Area (NCAA) to outclass its competitors, Kenya and South Africa.

Tengeneza said the body mandated to market and promote the country’s tourism destinations will use the footprints to wooing more tourists during the ITB expo.

“This year we use the Laetoli footprints as our best weapon among the many weapons in our armory at the ITB Berlin show,” he explained.