By ERIC TOROKA (businesstimes.co.tz):
THE decision by the Tanzania National Parks Authority (TaNaPA) to
steeply hike the ‘concession fee’ it charges for customer
accommodation at local tourist establishments from US$10 to $60 per
person beginning this year has rattled stakeholders in the tourism
industry. The fee is collected by tourist hotel operators from their
guests in Tanzania and passed on to the Authority as a matter of
course.
Commenting on this, the Tourism Confederation of Tanzania (TCT) said the
decision could see the country losing millions of dollars in tourism
earnings down the road. This is largely because the inordinately high
fee is bound to
stifle the tourism business environment in Tanzania.
On August 1 this year, TaNaPA announced the payment of concession fees
in all hotels operating under its fixed rates specified for each
accommodation facility. It is said the approved fixed rates for
concession fees would be displayed at the entry gates of 15 national
parks, where the fees would be paid in a similar manner as other park
fees such as campaign and guide fees.
In the event, however, TCT wrote to Prime Minister Mizengo Pinda,
stressing that the sudden increase in the fee rate – coming as it does
in the middle of the tourism season – does not create a conducive
business environment for the tourism industry.
“To change prices/fees for tourist safaris in the middle of the season is
against good business practice, and seriously damages the reputation of
Tanzania tourism operators in the international tourism market,” the
letter reads in part.
It also argues that the decision inflicts serious damage upon the
image and credibility of Tanzania in the international tourism market.
“The reputation of Tanzania as a dependable and stable tourist
destination is seriously comprised,” the letter stresses, adding that
local tourism operators are seen to be unreliable and cannot be
trusted regarding the prices they offer and quote for safaris.
The Tourism Confederation laments the uncertainty and poor state of
relations between the Government and the private sector regarding the
concept of public-private partnership (PPP) and dialogue which private
sector operators have tried to build over the years. This is with the
overriding objective of effectively and promptly addressing key issues
facing the industry, including changes in fees.
“The partnership has been at the sub-sector level of which to-date there
is a memorandum of understanding on public-private partnership between
the ministry and the Confederation,” TCT explains.
The letter also notes that TaNaPA’s decision has completely sidelined
the partnership and dialogue and due process, adding that the
private sector is extremely concerned about this – and what the future
holds in relation to the partnership and dialogue processes.
In that regard, the private sector tourism players urge the
Government to suspend implementation of TaNaPA’s unilaterally
declared new fees and payment modality.
Not only should the Authority take that step; the Government should
ensure that the status quo is maintained until a meeting between
TaNaPA and the private sector is convened to decide on the best way
forward.
“TCT, on behalf of the private tourism sector, requests the Government
to address the very serious concerns presented in this submission
following the announcements of the new fees by TaNaPA,” the letter
concludes.
In his July 31, 2009 letter (Ref TNP/HQ/A.20/62), the TaNaPA
director-general informed tour operators and park wardens of the new
concession fee and payment modalities.
This was followed by two stakeholders meetings in Dar es Salaam in
October 2009 to clarify the new developments in order to avoid
implementation hitches.
The requisite agreements were drafted in consultation with an
independent lawyer (jointly paid for by TaNaPA and the Hoteliers
Association of Tanzania (HAT)). This was followed in December 2010 by
issuance of the new Standardized Licence Agreement by TaNaPA to the
licensees for their respective signatures.
Thereafter, implementation of the agreements has reportedly been going
on smoothly.
On August 17 this year, members of Parliament (MPs) raised
the issue of concession fees, saying they were tarnishing the image
and performance of the ministry of Natural Resources & Tourism’s.
Among the issues are the reluctance of hotels in the national parks to pay the
concession fees; pollution of Mount Kilimanjaro; rampant poaching of
wild game, and poor management by the Ngorongoro Crater – a UNESCO
World Heritage Site – by the relative Conservation Authority (NCCA).
The chairman of the parliamentary Standing Committee on Lands, Natural
Resources & Environment, James Lembeli, said refusal by the hotel
owners to pay the new rates denied the Government about Tsh20 billion last
year alone!
Although the Government’s decision is one of its key priority
policies in enhancing revenue collection, it collides with its own
intention to continuously ensure a business environment which is
conducive for investments in the tourism sector and elsewhere.
Reportedly, two prospective Canadian investors (names withheld) who
were keen to invest in Tanzania say the fees hike could keep foreign
investors away.
This is mainly due to the fear that the Government is not capable of
keeping its word…
Speaking over the phone this week, the executive director of the Tanzania
Private Sector Foundation (TSPF), Dr. Evans Rweikiza, said the
increase in concession fees – with which hotel owners differ – is a
result of seeking to implement policies without first engaging in
dialogue with the private sector.
In the event, Dr Rweikiza urges the Government to revive meaningful
dialogue with the private sector so as to enhance good business
environment, peace and harmony, all of which are to the good of the country.
“We urge the Government to revive talks with the private sector,
instead of letting things get worse – resulting in strikes such
as in the one we saw in the recent fuel business crisis, and so forth.
Let’s talk, plan together to make business operators and other traders
get some profit – but not super profits as many people think,” he
stated.