Tanzania: Tourism Sector Loss Projected At 2.1trn/-

By Domasa Sylivester in Dodoma

THE tourism industry is projected to face its worst fiscal crisis in history because of the coronavirus pandemic, characterised by

massive job losses and an estimated 2.1trn/- decrease in revenue collections.

Minister for Tourism and Natural Resources Dr Hamisi Kigwangalla predicted that nearly 500,000 people will be rendered jobless if the situation does not normalise by October 2020.

Revenue collections will shrink to 598m/- from 2.6trn/-.

Tabling the ministry's budget estimates and expenditures for the forthcoming fiscal-year, the minister explained that the novel virus had seriously affected the industry and is anticipated to reduce direct employment from 623,000 to 146,000.

The minister said the number of tourists is likely to drop from 1,867,000 to 437,000 arrivals. "We are witnessing the impact of the pandemic in revenue collections," he said.

Dr Kigwangalla acknowledged that revenue projections by large institutions such as the Tanzania National Parks (Tanapa), Ngorongoro Conservation Area Authority (NCAA), Tanzania Forest Services (TFS) and Tanzania Wildlife Management Authority (TAWA) had also been badly hit.

During the Financial Year 2020/21, Tanapa planned to collect 363.9bn/- but was expected to generate only 64bn/-.

NCAA's 162.7bn/- projection has also dropped to 58bn/-, while TFS's 153.6bn/- and Tawa's 58bn/- will now be 121bn/- and 22bn/- , respectively.

The tourism sector is one of the mainstays of the country's economy, contributing at least 25 per cent of all foreign currency earnings, but the ministry is worried that the sector's collection will drop by at least 75 per cent in the next fiscal year.

The new development, according to the minister, is part of features of the recently rapid assessment which was commissioned since April 6, 2020, to review the impact of the virus since it was first confirmed.

Since March 25, Emirates, Swiss, Oman Air, Turkish, Egyptian Air, South African Airways, RwandAir, Qatar, Kenya Airways, Uganda Airlines, Fly Dubai and KLM suspended flights to Tanzania.

The country's Air Tanzania also suspended its foreign flights, further affecting tourist arrivals.

The minister said, however, that the government is planning to intensify the protection of wildlife and natural resources to ensure the sector continues to support the economy.

The plan, according to the minister, includes training game wardens, naming new tourism attraction sites as well as increasing new forest protected areas.

Revenue collection from foreign tourists increased to 2.6billion US dollars in 2019 from 2.4billion US dollars in 2018.

Kemilembe Lwota, the Chairperson of the Parliamentary Committee on Land, Tourism and Natural Resources, suggested that the ministry adopt a comprehensive recovery plan that will sustain the wellbeing of the institutions under the ministry even during such disasters as coronavirus.

The plan, according to the committee, should include providing an incentive for tourism industry businesses.

She said the committee urges the government to take actions that will attract tourist arrivals which include shelving landing fees for airlines, reduction in park fees, visa exemption, as well as suspending VAT to industry investors.

"The government can also resume single entry plan in national parks; this can also attract more arrivals," she said.

The ministry had requested 114.593bn/- budget in which 69.573bn/- is planned for recurrent expenditures and 45.02bn/- for development projects.