Tanzania takes a step in the wrong direction

[warpedskydiver 0]

www.nationmedia.com/eastafrican/current/News/nws211020075.htm

By MIKE MANDE
The EastAfrican

In a move that confirms the growing resentment of foreign investors in Tanzania’s tourism sector, the government plans to introduce legislation to bar foreigners from engaging in tourism related businesses in the country.

The new legislation — expected to come into effect as early as next year — proposes to restrict the participation of foreign investors in areas such as travel agency business, mountain climbing, trekking or owning tour and travel operations in the country.

While the minister in charge of tourism will retain powers and discretion to grant exemptions, especially with regard to existing business, the expectation is that some of the business people will be asked to leave.

According to the Minister for Natural Resources and Tourism, Prof Jumanne Maghembe, the Tourism Bill 2007, will also establish the Tanzania Tourism Licensing Board, which will spell out a new legal framework for receipt and consideration of new licences.

Prof Maghembe said the new regime will also clearly spell out areas of business activity that will remain exclusive for locals 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 penalise offenders who contravene the Tanzanian laws and regulations in the tourism sector.

The new regulations will also set age limits and basic qualifications for workers in the industry. For instance, the new law proposes 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 $10,000 or imprisonment for a term not exceeding two years,” said Prof Maghembe.

The new move is certain to elicit stiff opposition from the international tourism fraternity.

The idea of creating exclusive businesses for Tanzania nationals is especially going to be controversial as it represents a major policy reversal in a country currently enjoying an unprecedented growth in the tourism sector mainly fuelled by new foreign investment.

International lobby groups such as the Universal Federation of Travel Agents’ Association — an international umbrella for travel agencies — will no doubt come to the defence of the interests of their members.

In an interview with The EastAfrican, Patrick Mwele, vice president of the Federation of East and Southern African Travel Agents (Fesata), said from Lusaka that the move was not only likely to kill competition, but it will expose the country to charges of practising nationalisation.

Mr Mwele said the travel agency business flourished better in conditions of competition, pointing out that the best way to strengthen Tanzanian-owned travel agencies was to expose them to competition with international travel agencies.

He said the move will damage the country’s image as an attractive destination for investment in tourism.

“Fesata is not sure as to how the international community will react to the issue, but our feeling is that what has been done amounts to reverse driving,” he said.

He said his organisation had been informed of the new regulations and will soon convene a meeting of members to discuss it.

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 the esteem of Tanzanians.

Opposition to the Bill is expected from associations such as the Tanzania Society of Travel Agents (Tasota), which is one of the most active association of businesses in the country.

With more than 27 travel agents in its membership, Tasota’s wide and convincing mandate has allowed it to emerge as the pre-eminent voice of the tourism industry in Tanzania and has remained vocal whenever it felt that policies introduced by the government were not in the interest of its members.

Tasota often speaks for a wide range stakeholders, including suppliers, airlines, charter companies, hotels and travel agency associations in Kenya and Uganda.

The Bill, which is expected to strengthen and improve the regulation of tourism facilities and activities for both domestic and international tourists, will be tabled in parliament during the next session.

[quade 4]

Why do you feel this is "a step in the wrong direction"?

It seems to me that the government recognizes the value of the tourism trade and wants to see its own people reap the benefits of it and not simply be exploited by foreign investors.

What am I missing?

quade -
The World's Most Boring Skydiver

[warpedskydiver 0]

Ok I will give you an example, what would happen if the USA or any other large country with a thriving international tourism industry decided that it should pass a law exactly as Tanzania plans to?

[quade 4]

The US is a completely different case; it's not just starting up, it's well established, so the two can't really be compared on that basis.

Lemme ask you this; suppose the US found a new resource that could make a LOT of money for the poorer parts of the country and we heard that some foriegn investors planned on snatching up the rights to it. How would we react?

quade -
The World's Most Boring Skydiver

[nigel99 620]

I think the problem with laws like this and the general attitude is that foreign companies bring skills and contacts with them. You only have to look at Zimbabwe to see the consequences of full scale indiginisation programs. BTW recent Zimbabwean law states that a "local" person can ONLY be black - so 2nd and 3rd generation whites & indians are excluded. I think that there is a growing trend towards this in southern Africa with Zimbabwe leading the pack.

As much as I am loath to say it I think that better regulation in terms of minimum wages & employee rights are a better way to ensure that more money stays local. (I am against regulation - not better pay in case this reads odd)

Experienced jumper - someone who has made mistakes more often than I have and lived.

[quade 4]

What I think would be a much "smarter" way to go in this particular case would be for Tanzania to do exactly what it has done by limiting foreign investors, but they should HIRE a few key people from the outside that know what the tourism trade is all about. Link their pay to profits and you'd have a winner.

quade -
The World's Most Boring Skydiver

[rehmwa 2]

Quote

Link their pay to profits and you'd have a winner.

what kind of liberal are you?

...
Driving is a one dimensional activity - a monkey can do it - being proud of your driving abilities is like being proud of being able to put on pants

[quade 4]

Quote

Quote

Link their pay to profits and you'd have a winner.

what kind of liberal are you?

The words liberal and profit are mot mutually exclusive.

This is not to say that corporate executives that make pig fucking crazy money on the backs of minimum wage workers is a "good thing", but, there can be a balance.

quade -
The World's Most Boring Skydiver

[kelpdiver 2]

The overuse of primary routes on Killamanjaro could support this move - nationals are more likely to take a sustainable approach to the mountain. But done poorly, could make matters worse, both in terms of impact and hiker safety.

Severe penalties on tourists for taking pictures, otoh, is a great way to encourage people to go elsewhere.

[nigel99 620]

Why would you be against free enterprise? I think there are a few problems with your proposal. The first is that often when you lack the skills you don't know what skills to hire.

I realise that with Africa there is a feeling that it is "abused" by the west. I would have thought that in general business is about getting rich and good business tends to treat its benefactors well in order to survive. Tanzania is a little far from my direct experience growing up in Zimbabwe I was exposed to Zambia, Mozambique and SA. Corruption is rife and the average person is culturally so different to you and I it is virtually incomprehensible - this can make business very difficult. I am making the basic assumption that Tanzania is very similar.

Another angle to consider is that the vast majority of African tourism is pretty much family business rather than chains/large enterprise. Tour operators, game ranches and the like are often fully run by a family - I don't know how the legislation treats this type of outfit.

Experienced jumper - someone who has made mistakes more often than I have and lived.

[rhys 0]

While in Tanzania, throw common sense out the window, do not question authority and do not lose your cool. stick to those rules and everything wwill be O.K.

Just wave and smile!!!!!!

this legislation will choke the already choked economy, i lived there for that lsat year. the people are opressed by their own kind and are taught that it is the fault of the Wazungu (foreigners) 97% of the population truly believe that Tanzania is a poor country while the other 3% rpae and pillage it for personal gain.

The ethics of that upper class in that country is nothing short of discusting. it cost US$600 in park fees to enter Kilimanjaro national park and you still have to shit in a hole and look at rubbish the whole way up. All the money goes into late model land cruizers (etc.) that are evenly distibuted between the top 3% of the country.

that govornment needs some seroius intervention.

the other 97% of the people by the way are the kindest, freindliest most peaceful people i have met but unforunately their own govornment does not want them to learn the truth because that would thake their late model landcruizers away.

"When the power of love overcomes the love of power, then the world will see peace." - 'Jimi' Hendrix

[rehmwa 2]

Quote

the people are opressed by their own kind and are taught that it is the fault of the (foreigners)

It's a good thing that doesn't happen anywhere else
(everywhere else)

...
Driving is a one dimensional activity - a monkey can do it - being proud of your driving abilities is like being proud of being able to put on pants