How Tourism can earn Tanzania $16bn annually

[RUCCI]

Retired President Benjamin Mkapa speaks at the launch of the Sixth Tanzania Economic Update.

It is the story of a man who starves in the midst of plenty simply because he does not know how eat. Consider this: Tanzania is in the top five countries in Africa with the best tourist attractions.

Yet the number of tourists who visit the country yearly is just 11 percent of what South Africa recorded in 2013.

According to data from South Africa's department of tourism, the country received 9.6 million tourists in 2013. Tanzania has more tourism attractions but South Africa has highly developed infrastructure, a robust marketing strategy and sound policies.

The World Bank says Tanzania can earn an average of $16 billion (roughly Sh27 trillion) a year in the next decade if the government takes serious measures to reform the sector. That amount is nearly eight times the current tourism earnings and more than the current financial year's budget estimated at Sh19.8 trillion.

Tanzania's tourism sector is the story of a starving man who is surrounded by plenty of food. The World Bank says that local tourism, which accounts for about three percent of gross domestic product (GDP), must be reformed urgently to unlock the abundant natural attractions and create more jobs and closer linkages with businesses and local communities.

Last year, the industry generated a total of $1.9 billion by the end of November. This represented 22 per cent of the value of all exports in that period.

"There is potential for further growth as also emphasised by the Government, and some of the reforms required are quite urgent as the status quo could be costly for the country," said Mr Philippe Dongier–the World Bank's country director for Tanzania, Burundi and Uganda–during the launch of the Sixth Tanzania Economic Update.

The sector is said to employ 500,000 people now but the dramatic rise in the number of tourist arrivals in recent years has not translated into a proportionate rise in the number of high and mid-level jobs.

Why tourism is not benefitting the country

In its latest report, the World Bank says Tanzania's tourism is concentrated at about 90 per cent in the northern circuit and Zanzibar's beaches. The southern sites and mainland beaches have not been given due weight.

According to Mr Jacques Morisset, the World Bank's lead economist, Kilimanjaro, Serengeti and Ngorongoro have been the focus of tourism while other attractions are ignored. "What about Ruaha, Pangani and Bagamoyo? Tanzania is rich in natural resources," he said.

Sixty per cent of all bookings and tourist payments are done abroad, denying local operators an opportunity to earn more. And, despite the high growth rate in the industry, job creation remains low.

Local tourism also does not stimulate development among communities in the neighbourhood of the attractions, which indicates that the two are not linked. The frustration continues with an unfair and complex taxation system.

Source:The Citizen