Tanzania annually loses Sh1.8 trillion due to lack of national flag carrier

in accordance with the report released by Bank of Tanzania – BoT in January 2014, The level of loss is Sixty percent of yearly tourism earnings, that amounts to an overwhelming Sh3 trillion. This means that Tanzania losses nearly Sh2 trillion every year.

Tanzania every year has been losing about Sh1.8 trillion since it is not able to decrease the cost of conducting business and does not have a very good airline.

Tanzania-AirportThis amount lost every year can construct 222 contemporary dispensaries for around $5 million or Sh8.1 billion each. that very money can as well build a1,000km tarmac road, estimated to cost Sh1.8 billion per kilometer, in accordance with the estimated worth of the Tanzania National Roads Agency this year.

While addressing the media, Mustapha Akunaay the ex- Managing Director of the Tanzania Tour Operators Association said that Tanzania has sadly been losing about Sixty percent of its overall tourism proceeds each year simply because it didn’t invest in a robust flag carrier. Additional tourism money has as well been lost because of failure to search for new types of tourism business as well as the being unable to generate revenue from the foreign intermediaries earning from the tourism potentials of Tanzania without being supervised by the concerned authorities.

Mr. Akunaay, the Chadema Member of Parliament for Mbulu says that nearly 60% of the yearly tourism revenue is being lost because the country does not have a national-flag carrier. The International airlines are benefiting from this weakness by drawing off a large amount of revenue from the international travelers since reservations are done online.

Depending on him, tourism dealers who are based in foreign countries have been conspiring with some international investors to benefit from hotel reservation costs as well as in the procurement of hotel equipments and Tanzania government hasn’t been monitoring the earned revenue.

One of the experienced tour operators said that the government must establish rules for monitoring reservation fees as well as charge the international hotels, this way they will be able to increase revenue obtained from the tourism sector.

Additionally there is need to even explore the new tourism sources for example distinctive mining areas, freshwater fishing areas in addition to tea plus coffee plantations instead of adhering on just the traditional attractions.

Mr. Akunaay added that The 5 years tourism marketing strategy, that was launched in 2012, has been rejected due to lack of vision. “To demonstrate that there aren’t any impressive marketing efforts as well as the lack of skills, the officers in charge of tourism promotion have been focusing on setting up costly billboards in bad residential areas within London. They ought to concentrate on the rich who may easily turn into active international tourist clients.

In this 5 year National Tourism Marketing Strategy, the Tanzania government intends to install billboards plus placards in Settle-Sounders based in the US stadium, increasing tourism business sources, imposing new taxes and analyzing the National Tourism Policy of 1999.

Mr. Gumbu Mhandeni a director at one of the tour companies agrees that the Tanzania government has unfortunately lost several billions of shillings due to intermediaries who are likewise key dealers in online tourism, actively playing the part of agents within foreign nations.

He suggests that the government needs to inflict costs for foreign dealers that cooperate with the country hotel dealers in booking as well as marketing actions.

contact us