Tanzania Plans Public Private Tourism Partnership

Tanzania’s government is engaging tour operators over possible Public-Private- Partnership (PPP), as it seeks to open up the Southern tourism circuit for travel.

The Governor of Iringa, the designated Southern tourism circuit hub, Mr. Ally Hapi led the government mission to meet the members of Tanzania Association of Tour Operators (TATO) at the weekend in northern circuit capital of Arusha to deliberate on the best PPPs as part of the strategy to stimulate tourism in the new area.

“My key mission here is to discuss with you (tour operators) to form a partnership with the government to unlock the Southern tourism circuit potential for travel,” Mr. Hapi told the gathering at Four Points By Sheraton, The Arusha Hotel.

He implored the key players in the tourism and hospitality industry to invest in Iringa in accommodation, pledging to ease the process of acquiring land, building permits, and other crucial supports.

Mr. Hapi, one of few Youthful Regional Commissioners under President’s John Magufuli regime said Southern circuit is now accessible through roads and air.

“The Air Tanzania Corporation, a national carrier, has since mid-2019, introduced a three-times scheduled flight from Dar Es Salaam to Iringa to offer holidaymakers and business community a hassle-free trips in the area” Mr. Hapi noted, adding that plans are underway for the Iringa airport to be expanded to accommodate major planes in the new potential tourism area. 

This comes hardly nine months since the TATO deployed a delegation to Iringa under its Vice-Chairman, Mr. Henry Kimambo to identify new potential members in its effort to establish a chapter in the area to cater for the entire Southern circuit, thanks to USAID PROTECT Project for building the capacity of an umbrella organization with over 300 members, for it to become an efficient advocacy agency for the tourism industry.

John Corse, the TATO board member urged the Government to invest heavily in terms of branding the major attractions available within the Southern circuit, particularly Ruaha National park.

“You need to promote Ruaha through the world-renowned Serengeti national park. You can make documentaries and use media to promote the attractions available in the Southern circuit,” Mr.Corse told the government delegation.

It is understood; the Fifth Government under President Dr. John Pombe Magufuli is working overtime to put up hardware infrastructures as it seeks to unleash the full economic potential of the area.

Impressed by the government move to designate Iringa as the Southern circuit hub, TATO’s CEO, Mr. Sirili Akko said: “We are keen to replicate the best practices from the northern tourism circuit to Southern shred” 

This implies that the 36-year-old advocacy agency for a multi-billion dollar industry, with its base in northern safari capital of Arusha, will soon have a liaison office in Iringa to take care of its Southern circuit members.

The southern circuit formed by several national parks. The national parks namely Mikumi, Udzungwa, Kitulo Ruaha, as well as Selous Game Reserve, have fewer visitors and give the feeling of being all alone. 

Activities include game drives in open vehicles, boat safaris, and walking safaris. These safaris include flights between the parks.

Tanzania’s earnings from tourism jumped 7.13 percent in 2018, helped by an increase in arrivals from foreign visitors, the government has said.

Tourism is the main source of hard currency in Tanzania, best known for its beaches, wildlife safaris and Mount Kilimanjaro.

Revenues from tourism fetched $2.43 billion for the year, up from $2.19 billion in 2017, Prime Minister, Mr. Kassim Majaliwa said in a presentation to parliament.

Tourist arrivals totaled 1.49 million in 2018, compared with 1.33 million a year ago, Majaliwa said.

President John Magufuli’s government said it wants to bring in 2 million visitors in 2020. 

Travel agents: Govt urged to promote tourism sector.

TRAVEL agents have requested more support from the government in order to develop the tourism industry in Tanzania.

Speaking in  Dar es Salaam, the Chairman of Tanzania Society of Travel Agents (Tasota) Moustafa Khataw, said more is needed for the government to help the sector. He said the government should review all charges or taxes imposed on travel agents.

“Travel agents have to pay to provide a bank guarantee to IATA which is a big burden to them especially when clients do not pay them on time”, he said. He said the fees and commissions which they are supposed to pay are not friendly,  hence they need a review.

“We also urge the government to establish a special unit that would deal with travel agents to address our challenges”.

Khataw suggested that it was the right time for the establishment of a regulatory agency that would address issues pertaining to travel agents. Recently, the association issued a statement to the public informing customers on payment circle for air tickets issued in Tanzania.

It said that the credit period enjoyed by International Air Transport Association (IATA) accredited air ticketing agents in Tanzania is 15 days and maybe reduced further to 7 days. Agents failing to meet payment deadlines will be declared defaulters and denied facilities to issue tickets.

Consequently, in order to protect the industry from a crisis arising from potential massive defaults, existing credit terms for air tickets will change drastically and can be also in favour of cash/credit card or prepayments as well.

This is, therefore, to advise all consumers of air travel services especially corporate entities and government departments to take not of the terms and conditions. The association urged customers to ensure necessary adjustments in payment plans to conform to the new requirements of the relevant agent.

TASOTA is the national association representing the interests of travel agents in Tanzania.

It serves as the single voice of travel agents in the industry with a mandate to promote the highest code of ethical and professional standards members in their dealings with consumer and each other.

Meanwhile, Tasota in partnership with other certified training institutions will soon embark on a program to upgrade human capital in the tourism industry. At moment human capital is the biggest constraint in the tourism industry.

The chairman said  TASOTA in collaboration with certified training institutions will provide requisite training to personnel in the travel industry in order to enhance their knowledge and skills. Commenting on travel and tourism business status at the moment, he said there is a growing interest for tourists to visit  Tanzania.

He said figures being shared by Tanzania Tourists Board (TTB)  look encouraging and thus participation at various trade shows will yield good results.

“With Air Tanzania planning to fly on international routes, this will boost tourism especially from India and China,” Khataw noted.

He also said that air travel has had challenging times in Tanzania for the past few years since there are few companies that had announced to close shop.

“We understand that ETIHAD Airways – The National Airline of Abu Dhabi has pulled out of Tanzania market from 1/10/2018 and there has been stiff competition especially with the low season being around the corner”, he said.

Airlines want to “rope in” customers in advance by giving lucrative offers, he said adding that airfares within African countries are still on the higher side.

According to him, with prudent measures being taken by the fifth phase government, travel from the government sector has reduced as a result it has, in turn, affected many of our members.

Khataw said in order to improve the sector, domestic airfares, as well as intra-African travels, have to be re-aligned and an “open skies” treaty is implemented.

Tanzania Tourists Board director named among top 100 women CEOs in Africa

Tanzania Tourists Board (TTB) managing director Ms. Devota Mdachi.

Dar es Salaam. Tanzania Tourists Board (TTB) managing director Ms. Devota Mdachi has been recognized in the list of top 100 women CEOs in Africa for good performance by Reset Global People in partnership with Pulse and Avance Media.

In a statement released by Reset, Global People states that the inaugural list of the top 100 women CEOs in Africa, a ranking that highlights and recognizes the accomplishments of women CEOs from across 24 countries in the continent.

According to CEO of Reset Global People, Kwame Opoku said the nomination of these distinguished women is in relation to their works and accomplishments as leaders of their team which continues to inspire the next generation of women CEOs in Africa and across the world in alignment with SDGs Goal 5 and 10.

Detailing the criteria used in coming up with the list, Avance Media managing director Prince Akpah, mentioned that the list highlights profit, impact and sustainability and the overall influence of the individual women over their sector, industry, and community as a whole.

With representation from 24 countries, the list features women who are noted to have broken the glass ceiling from across diverse sectors, making a name and case for women leaders on the continent.

Speaking to The Citizen on Monday, December 16, Ms. Mdachi said, “I believe they have chosen me among top 100 due to the organization that I am currently leading due to its fact that is very important to the Tanzanian economy,” 

NAMIBIA, TANZANIA INK AGREEMENTS TARGETING TOURISM, ART, CULTURE AND YOUTH DEVELOPMENT

Namibia and Tanzania agreed to revive the Tanzania-Namibia Joint Commission for Cooperation to boost trade and investments in the two countries, according to a report from NCA in Tanzania.

The revival of the joint commission for cooperation which had been dormant for the past 20 years was made at the end of the 2nd session of the Tanzania-Namibia Joint Commission for Cooperation in Tanzania’s commercial capital Dar es Salaam.

The two countries signed three Memorandums of Understanding (MoUs) on tourism, art, culture and youth development.

Palamagamba Kabudi, Tanzanian Minister for Foreign Affairs and East African Cooperation, said the revival of the commission for the joint cooperation marked a new chapter toward improving trade and investments between the two countries.

Kabudi said the activation of the commission will invigorate bilateral relations and friendship between the two countries.

“We should now do more to attract trade and investments between our countries,” said Kabudi, adding that there was huge potential in investments in pharmaceuticals, manufacturing, tourism, and mining.

Netumbo Nandi-Ndaitwah, Deputy Prime Minister and Minister for International Relations and Cooperation, said the revival of the commission will enable the two countries to work closely in addressing challenges hindering socio-economic development.

“With the revival of the commission, Namibia and Tanzania will continue to grow from strength to strength,” she said.

Trump nominates new American Ambassador to Tanzania: Spearheading tourism

United States President Donald Trump named then nominated a new Ambassador to Tanzania, after nearly 3 years of the US Embassy in Tanzania’s commercial capital of Dar es Salaam running without an appointed ambassador.

Trump nominated Dr. Don J. Wright of Virginia as his new envoy to Tanzania. The White House announced the nomination of Dr. Wright on September 30 of this year. He is set to be vetted by the US Congress and Senate before taking up his post in Tanzania. When confirmed, Dr. Wright will succeed Mark Bradley Childress who served as US ambassador to Tanzania from May 22, 2014, to October 25, 2016.

After taking over his new position in Dar es Salaam, the new US ambassador is expected to spearhead economic diplomacy between Tanzania and US tourism – the leading economic sector in which Tanzania is looking for an American partnership. The United States is the second of high-class tourists visiting Tanzania every year. Over 50,000 Americans visit Tanzania every year.

Up until now, the US Embassy in Tanzania’s commercial capital of Dar es Salaam is under the Senior Foreign Service Officer (FSO) Dr. Inmi Patterson who has been Chargé d’Affaires of the mission since June 2017.

Dr. Wright is a career Senior Executive Service (SES) member and is currently working in the Department of Health and Human Services (HHS) in the United States.

Reports from the US State Department said that Dr. Wright developed and implemented the National Action Plan to Reduce Healthcare-Associated Infections and Healthy People 2020, the US’ framework for disease prevention and health promotion initiatives.

His career at HHS includes service as acting Assistant Secretary for Health and acting Executive Director of the President’s Council on Sports, Fitness, and Nutrition.

He received his BA at Texas Tech University in Lubbock, Texas, and his MD at the University of Texas Medical Branch, Galveston, Texas. He received an MPH at the Medical College of Wisconsin in Wauwatosa. He was honored by the American College of Preventive Medicine in 2019.

The United States is the leading donor to the development of health services in Tanzania, mostly contagious tropical diseases and HIV AIDS, among other diseases, including malaria.

While in Tanzania, Mr. Childress will oversee, among other political and economic issues, the US support to Tanzania in areas of health, human rights, and wildlife conservation.

The United States is the leading donor to Tanzania in health projects targeting malaria eradication, Tuberculosis and HIV/AIDS prevention, safe-motherhood, and health education programs.

Tanzania is among African countries doomed with tropical and communicable diseases including the recently-diagnosed dengue fever outbreak which had hit several parts of this African nation.

With budget constraints in health services, Tanzania depends on donor support, mostly from the United States, Britain, Germany, and Scandinavian states to finance health projects. Wildlife conservation is the other area which the US government has committed to supporting Tanzania for the last few years. America has been on the frontline to assist Tanzania in anti-poaching campaigns aimed to save African elephants and other endangered species from extinction from poaching.

The US government has also been supporting Tanzanian and other African nations in fighting international terrorism and piracy in the Indian Ocean.

Bleak Future For Tanzania Small Tour Operators As Tax Regime Bites

Many small-scale companies in the tourism and hospitality sector in Tanzania are facing a bleak future as they are finding it difficult to comply with the tax regime.

Players say the Value Added Tax (VAT) in particular, is likely to kick-out the SMEs in the tourism and hospitality business if the Tanzania government doesn’t revisit its administration.

Tanzania Association of Tour Operators (TATO) and Hotels Association of Tanzania (HAT) say many of their members are concerned with the VAT treatment of deposits or advance payment in the tourism business.

“Majority members were finding it very hard to work out the accounting complexities of paying VAT on deposits,” TATO CEO, Sirili Akko said in Arusha.

He added: “Smaller tour operators and hoteliers don’t necessarily have access to high-level finance staff and therefore were at a loss as to how to deal with the issue in a compliant manner.”

Sector players add that though it makes no difference to the total amount collected by the Tanzania Revenue Authority (TRA), it vastly increases the complexity of the accounting and the difficulty of the administration of this for both the companies and the revenue authority.

“It is a widely held belief that clear and straightforward tax regimes help revenue authorities to maximize compliance, as well as helping to increase the tax base by encouraging further investment,” Akko explains.

The TATO and HAT members meeting agreed to set up a technical committee to clarify the challenges and prepare a plan to meet with the Ministry of Finance to agree a way forward that would ensure that payment and administration of VAT are as straight forward as possible.

“Both TATO and HAT can then educate and help all of their members to be as compliant as possible,” said HAT CEO, Ms. Nuralisa Karamagi.

“The majority of players in the tourism and hospitality sector consider the provision of section 15 of the VAT Act, 2014 to be problematic when receipts of deposits trigger it,” Dr. Deogratius Mahangila who undertook the study notes.

First, he says, a deposit in the tourism sector indicates that the client is committed to traveling and therefore, the operator has to confirm the need for accommodation, transfers, flights, and vehicles with suppliers and the suppliers ought to reserve the space for these bookings.

According to the respondents’ opinions, the pre-payment is not a consideration for the supply, as a deposit is used to secure space on behalf of a customer—typically accommodation, vehicles or seats on airplanes.

“It is a commitment as these spaces are limited in supply and therefore require prior booking,” Dr. Mahangila says, adding: “Typically, any deposit made will be deducted from the final payment due, but the exact nature of the service can and does change after a pre-payment has been made.”

Indeed, deposits are not income. The tourism sectors essentially hold this money in trust for their client for the future service and therefore the money remaining after the service is rendered, becomes income for tour operators.

The government had in December 2017 reviewed the Tanzania Tourism business License popularly known as Tala to attract local SMEs in the formal sector in a bid to expand its tax base.

Before the government’s decision, many briefcase firms clandestinely provided services to tourists to evade tax and often to con their customers at the expense of the country’s tourism image.

Tanzania Tourism rated 2nd in Sadc Bloc

Arusha. Tanzania trails South Africa only in the share of the tourism market in the Southern Africa Development Community (Sadc) bloc.

South Africa tops both in the tourist arrivals and earnings, beating other southern Africa states which dominated the market for so long. Recent statistics indicate that 13 percent of about 24 million international arrivals to the region annually head to Tanzania.

South Africa, Africa, and the bloc’s biggest economy attract 47 percent to the tourists visiting the 16 nation bloc.

“South Africa is also the leading source market for tourists to Tanzania ahead of other Sadc member states,” said Mr. Philip Chitaunga, a senior official in the ministry of Natural Resources and Tourism. Last year, there were 54,000 visitors from South Africa to Tanzania, 47,000 from Zimbabwe,  45,000 (Malawi) and 30,000 from Zambia. Mr. Chitaunga revealed this here on Thursday in a media brief ahead of next week’s joint meeting of Sadc’s ministers of Environment, Natural Resources, and Tourism.

The five-day meeting will assess the development of the tourism, wildlife and forestry sectors as well as a lay strategy for the region’s ‘Blue Economy’.

He said in 2016 tourism accounted for 8.2 percent of total regional Gross Domestic Product (GDP) which was  $56.3 billion then. In the same year, the sector and allied hospitality industry segments generated 6.3 million jobs which were 6.1 percent of all jobs in the region.

Earnings from tourism also for 2016 amounted to $18.3 billion equivalent to 9.1 percent of the total regional exports from Sadc. Mr. Chitaunga, who is an assistant director in the ministry’s Tourism Department, added that Tanzania was second to South Africa in both tourism arrivals and receipts.

While South Africa generated more than $2.5 billion from tourist arrivals in 2016, Tanzania recording earnings amounting to $1.7 billion. In the share of the Sadc tourism market, second-placed Tanzania is closely followed by Mauritius (10 percent), Zimbabwe (nine percent).

Other countries on the top of the tourism market in the bloc are Mozambique, Botswana, Madagascar, Namibia, Zambia, and Lesotho. Unlike Tanzania, Mauritius and South Africa, Zimbabwe, Mozambique, Namibia, Angola, and Madagascar have bigger shared of arrivals than receipts. Botswana and Zambia have an almost equal share of tourism arrivals and earnings, according to statistics for 2016.