Tuesday, February 9, 2021

Tourism MSMEs hopeful amidst a myriad challenges

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Tourists look at a family of elephants. Due to the Covid19 pandemic, global tourism has fallen drastically, thereby affecting the economic and social lives of players in the sector. PHOTOS | FILE

By Rosemary Mirondo

Dar es Salaam. Despite challenges facing the tourism sector, Micro, Small and Medium Entrepreneurs (MSMEs) are hopeful that President John Magufuli’s vision of achieving five million tourist arrivals in the next five years will be achieved through collaborative efforts between the government and other stakeholders.

Speaking in separate interviews with The Citizen, stakeholders in the industry appreciate government efforts aimed at revitalizing the industry last year when it was undergoing Covid-19 pandemic challenges.

The Tanzania Association of Tour Operators (Tato) chief Sirili Akko said President Magufuli’s vision remains a compelling force to put both tourist stakeholders and the government in motion to create a conducive business environment.

“The feedback from our members is that the business situation is not yet back to normal but we still have high hopes that challenges we face will be resolved,” he said.

He noted that Tato, with the help of other stakeholders, have put in place emergency response system that comprises four world-class ambulances connected to flying doctors services in the northern circuit, renovated health centre in Seronera, participated in preparations of protocols developed by the government, among many other things.

He noted that those are the measures taken in compliance with the global trend and tourist’ requirements.

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For his part, the Tanzania Local Tour Operators (TLTO) chairman Samuel Diah commended the government for its close cooperation in monitoring challenges in the industry in 2020 - and finding solutions.

A majority of indigenous companies closed their businesses following the Covid-19 pandemic while at the same time a majority of workers, including drivers, office workers, mountaineers, cooks, tent builders, etc., also lost their jobs.

“Most indigenous firms are servicing loans taken from various banks and institutions; but, due to lack of business, this has been a major challenge and despite the lack of business for many companies, the revenue authority still maintains the same standard of tax collections,” he said.

He said relevant authorities have issued instructions to renew the Tala licence for the year 2021- that enable business on hiking and mountain.

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Tourists scaling Mt Kilimanjaro. PHOTOS | FILE

According to him, it should be noted that tour companies paid for their business licences as required by law.

But during the Covid-19, there was no business for a large number of firms, many of whom have failed to renews their licences for 2021.

Explaining this, he said the drivers and guides are also supposed to obtain licences to guide tourists, as per directive from the ministry of Natural Resources and Tourism.

“Tourism companies have no objection to these directives but the timing of the implementation of this law should be extended until the state of tourism is stable,” he argued.


Call on the government

He said they call upon the government to support a large group of young people, especially mountain porters, who are currently unemployed, to get jobs and support themselves.

On Tala, he said they request the government that mountain licences and that 2020 trip be applicable for the year 2021.

Further, he said mountain licence for indigenous companies is still $2,000 and since it was agreed for Tala travel to pay $500, they ask the government to also approve the same payment for mountain because it will increase productivity especially the example of travel licences after the reduction cost number of companies increased in operation.

On different charges, he said tourism is covered by various tariffs that make Tanzania not an attractive destination for visitors - and, therefore, urged the government to device ways of attract them to the country.

Following the Covid-19 pandemic challenges last year, he called on the government to seriously consider setting incentive packages for tourists coming to the country especially as the disease has greatly affected foreigners entering Tanzania.

According to him, they have called upon the government to look at how to re-attract a large number of foreigners to return to Tanzania because it should be noted that foreigners who are now immigrating from home to Tanzania have limited financial capacity.

He called on relevant authorities to look at how to help the tourist agent companies by economically assisting them during this period until the situation stabilizes.

The relevant institutions could provide education on how to pay government revenue and if possible suspend collections and levies where deemed appropriate until the status of visitors is restored.

He said since a majority of companies do not have the means to pay for new licences, the government could allow those who paid licences for 2020 to continue their business until 2021 whereby all networks related to tourism matters - including Tanapa, NCAA, Tawa, Latra, et cetera, et cetera - allow agents to continue operating using the 2020 licences.

Advertising Tanzania outside the country, he said there should be a special campaign to re-advertise Tanzania as the best tourist attraction in the world (this work should be done in partnership with stakeholders and the government together).

And we should also make a move to new markets in the world that Tanzania is yet to tap into.

When contacted, Ministry of Tourism and Natural Resources, permanent secretary Aloyce Nzuki said there are a series of meetings between tourism operators and the Ministry planned for mid-February.

“I can have something to relay after the meetings,” Dr Nzuki said.

 

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