By The Citizen
Posted Monday, October 21 2013 at 08:04
Posted Monday, October 21 2013 at 08:04
In Summary
The World Bank data have not only point
to Tanzania’s giant leap in tourism, it also says the country received
$1.3 billion in 2008, as opposed to Kenya’s $752 million during the
same period
Dar es Salaam. For the second
time in five years, Tanzania tourism sector earned $1.56 billion
(Sh2.574 trillion) surpassing Kenya’s $1.3 billion (Sh2.14 trillion), a
difference of $260 million, The Citizen has learnt.
This unveils the fact that Dar es Salaam has more of the world’s class tourist attractions compared to Nairobi.
Not only have WB data pointed out that but also
said that Tanzania received $1.3 billion in 2008 compared to Kenya’s
$752 million during the same period, all accrued from tourism.
It is understood that in 2008, the first time Dar
surpassed Nairobi, Kenya was passing through a difficult period due to
the post-election violence that left about 1,100 dead and over 600,000
others internally displaced, thus profoundly affecting tourism sector.
But, in the year 2012, Dar es Salaam surpassed
Nairobi at the time when the latter was enjoying very stable conditions
politically and economically. However, this means that if Tanzania is to
fully address the myriad challenges facing how it operates tourism
sector, it would remain the dominant giant in the region.
Tanzania has 31,365 hotel rooms as compared to Kenya’s 24, 354 and South Africa’s 61,417.
There are about 390,000 hotel rooms in sub-Sahara
Africa. Unbranded guest houses and lodges dominate accommodation
facilities while only ten per cent or about 35,200 rooms meet
international standards, according to data released by WB.
South Africa has about half the region’s stock of
international standard accommodation. Kenya, however, has 2,284
international standard rooms compared to Tanzania’s 1,588, while
occupancy rate is 92 per cent for Kenya and 43 per cent for Tanzania.
“We forecast that employment in travel and tourism
in 2021 will be 463,800 for Tanzania and 273,500 for Kenya,” the WB
report says. Currently, Tanzania is the second top tourist destination
by accommodation, after South Africa, according to the report by WB.
Challenging the myth
These fresh data by WB challenge pre-conceived
myth about Tanzania’s tourism indicating the great potential of the
sector and how it can transform the country’s economy.
The details that are included in a recent World
Bank report shows that not only has Tanzania tourism earnings and
arrivals surpassed Kenya’s but also that the proceeds from tourism
brought back to the country several times higher than those from
exported cash crops like coffee and cotton.
Titled ‘Tourism in Africa: Harnessing Tourism for Growth and
Improved Livelihoods’, the report argues that tourism can transform the
economies of Tanzania and other African nations and help in reducing
poverty only if infrastructure and tourist facilities such as hotels
were to be improved.
“A frequent criticism about tourism is that the
destination receives only a portion of the total cost of a tourist’s
expenditure. But this belief ignores the inputs, entrepreneurship, and
risks taken by businesses in the countries of tourist origin,” the
report noted.
The report says Tanzania captures about half the
global value chain in tourism packages sold in Europe, but this estimate
excludes discretionary spending by tourists.
“On the other hand coffee growers in Tanzania can
only expect to receive about 4 per cent of the final retail price of the
coffee sold in supermarkets in Europe. If basic processing, packaging,
and transportation are added, the country still only captures about 8
per cent of the final retail price of coffee,” the report said.
It is possible to increase tourism receipts beyond
the 50 per cent currently availed, the report says, by making sure
tourist facilities procured local services and products for their
businesses.
The report noted with concern that most hotel
furniture used in tourist accommodation facilities are imported from
China and that no trade link existed between local tourism enterprises
and the local furniture industry.
“The other challenge is how to manage and mitigate
the social and environmental impact of large tourism sectors.
Tanzania’s northern circuit is overloaded and the country is trying to
create new areas for tourism growth in the south, in the Selous Reserve,
Zanzibar, Pemba, and Mafia Islands,” the report says.
Tourism stakeholders have agreed with the report saying it portrayed correctly the potential of Tanzania’s tourism.
Mustapha Boay Akunaay the Tanzania association of
Tour Operators (Tato) Executive Secretary said the increase of tourism
earnings tells how important the sector is to the country economy.
“This reveals the commitment of tour operators and
the government in marketing and ensuring security of tourists in the
country is paying off,” said Mr Akunaay. But more must be done in terms
of legislative environment and improvement of transport infrastructure
and accommodation facilities.“For years it was termed that agriculture
and minerals were the key foreign exchange earners, but the truth is
that tourism is the major player,” said Mr Akunaay
In overall performance in terms of contribution to
the country’s Gross Domestic Product valued at $29 billion, agriculture
is still the significant contributor.
However, for the country to earn more from the
sector the government needs to establish reliable infrastructures
especially airports, hotels, railways and road network.
For instance, Julius Nyerere International Airport, which is set
to undergo expansion, is currently overwhelmed by the number of
passengers especially during the high season for tourists. “The
government must also harmonise landing fees so as to attract more
airlines,” he said.
“The survey established that tourism firms of all
sizes faced higher regulatory costs than firms in general, tax
compliance was more burdensome, and municipal regulations were a far
greater problem in this sector than for others,” the report says.
Additional reporting by Veneranda Sumila
SOURCE: THE CITIZEN