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Issue 00492 |
October 27 - November 2, 2007 |
issn 0856 - 9135 |
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Local News |
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Anger and joy as Government inches to lock out foreigners in tourism business
Some of the indigenous tour operators in Arusha have hailed the move to introduce a legislation that will bar foreigners from engaging in tourism-related businesses. The legislation is expected to take effect as early as next year.
A local tour operator told the Arusha Times that he was surprised the government has taken so long to arrive at that decision.
“ The action by the government is commendable, but foreigners in tourism business already operating in the country should not be bothered,” said Firoz Suleiman, Director of Sunny Safaris. He added that the government should make sure that taxes accruing from the tourism industry are paid according to the law.
Armstrong Nyaka of Jackis Tours said the government has taken appropriate measures by introducing such a legislation because a lot money accrued from the industry, he claimed, is secretly siphoned out of the country by foreign tour and travel operators who maintain offices in Tanzania and abroad. He claimed that the bulk of the money that they make from the lucrative business is banked in the foreigners countries of origin and what comes to Tanzania is ‘peanuts’.
The director of the Golden Rose Travel and Tours company, Walter Maeda was also of the opinion that the government should have barred non citizens from engaging in tourism business a long time ago by following Kenya’s footsteps.
He said one of the reasons why the tourism business is booming in Kenya was the fact that the industry is run by citizens of that country. He also expressed dismay over the Tanzanian government policy that allows foreigners to invest in petty businesses such as restaurants and guest houses and honoured with the title, “Investor”.
Carlos da Silva Verela of African Rhino Safaris and Ecotourism Africa was non committal but pointed out that: “ I don’t know if it is a right or wrong decision, but at least it is nice to know that they are considering new alternatives.”
He noted that many small Tanzanian investors are finding it difficult to run their own tourism businesses because of high level of competition from foreign investors.
However, other members of the private sector have advised that there should be no nationality restrictions on ownership of companies involved in the local tourism sector.
They pointed out that foreign owned companies bring much needed investment to the sector, including revenue to the nation and creating more employment opportunities.
Foreign companies account for 90 percent of the total tourism revenue in the country. This is according to the Arusha based Tour operators association.
Sweeping out foreign players in the tourism field was also described to be a disincentive for investment in the country and contradicts sections of the Tanzania Investment Center mandate and the move for more open markets such as the East African Community.
This was among the various suggestions to the amendments of the proposed bill that the private sector in Arusha addressed during their meeting with representatives from the Ministry of Natural Resources and Tourism at the Impala Hotel.
Under section 58.2 the new legislation — expected to come into effect sometimes next year — proposes the restriction of foreign investors from taking part in areas such as travel agency business, mountain climbing, trekking or owning tour and travel operations in Tanzania.
The Tourism Bill 2007 is also set to establish the Tanzania Tourism Licensing Board, which will spell out a new legal framework for receipt and consideration of new licenses and identify areas of business activity that will remain exclusive for Tanzanians while putting in place a mechanism to ensure that tourism business benefits local communities surrounding wildlife reserves.
The regulatory authority will also have powers to penalize offenders who contravene the Tanzanian laws and regulations in the tourism sector. The private sector however feels this part should be left to the country’s legal mechanism, because tourism is simply business just like any other.
Members of the Arusha private sector also want the removal of age limits and basic qualifications for workers in the industry. The new law is proposing to set the age limit for a tour guide at 21, with qualifications including an ordinary-level education, a valid First Aid certificate and adequate knowledge in the area of business.
“Any tourism operator who commits an offence under these measures shall on conviction be liable to a fine of not less than US$10,000 or imprisonment for a term not exceeding two years,” states a section of the new bill.
To which the private sector here advises: “There should be no prison sentences in the bill. Any criminal act should be pursued under the penal code of Tanzania.” They also added that no fines should be levied unless as a result of court decision.
They also advised that no fines should be at the discretion of the minister or any of his representatives.
Under the new law, severe penalties will be meted out to tourists who take photographs of local communities within the tourism facilities, especially if it can be proved that their intentions disparaged, make fun of, or reinforce stereotypes that lower their self esteem.
At the moment, about 20 percent of the 250 tour companies that are members of the, Tanzania Association of Tour Operators are foreign owned, 63 percent locally owned while the remaining 17 percent are joint venture companies.
Mustafa Akonaay the Association Secretary however points out that despite being few in number, compared to their local counterparts, 90 percent of the revenue collected from tourism activities in the country are contributions from the foreign owned tour companies.
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