1. 
ENGAGEMENT MEETING WITH
HON. MINISTER PROF. JUMANNE MAGHEMBE,
MINISTRY OF NATURAL RESOURCES & TOURISM

4. • About the Hotels Association of Tanzania
• Tourism Trends
• The Good News
• The Bad News
• From Issues to Solutions
• Final Steps

5. Who?
119 Members 232 accommodation facilities
(Hotels, Lodges and Tented Camps)
Non-profit incorporated 2004
1 of 12 members of the Tourism Confederation
of Tanzania (TCT)
Mission
Encourage, promote and protect the interests of
accommodation providers in Tanzania

6. Some of the many locations
where HAT Members offer
accommodations
TOTAL
119 Members 232
facilities 5,951
rooms 11,177 beds
SerengetiSerengetiSerengetiSerengeti &&&& GrumetiGrumetiGrumetiGrumeti
45 facilities45 facilities45 facilities45 facilities 856 rooms856 rooms856 rooms856 rooms 1654165416541654 bedsbedsbedsbeds
NgorongoroNgorongoroNgorongoroNgorongoro
23 facilities23 facilities23 facilities23 facilities 722 rooms722 rooms722 rooms722 rooms 1288 beds1288 beds1288 beds1288 beds
Arusha, Kilimanjaro & MoshiArusha, Kilimanjaro & MoshiArusha, Kilimanjaro & MoshiArusha, Kilimanjaro & Moshi
23 facilities23 facilities23 facilities23 facilities 581 rooms581 rooms581 rooms581 rooms 1033103310331033
bedsbedsbedsbedsTangireTangireTangireTangire NPNPNPNP
9999 facilitiesfacilitiesfacilitiesfacilities 184184184184
roomsroomsroomsrooms 377 beds377 beds377 beds377 beds
Mafia IslandMafia IslandMafia IslandMafia Island
5555 facilitiesfacilitiesfacilitiesfacilities 63636363
roomsroomsroomsrooms 146 beds146 beds146 beds146 beds
RuahaRuahaRuahaRuaha
7 facilities7 facilities7 facilities7 facilities 101101101101
roomsroomsroomsrooms 215 beds215 beds215 beds215 beds
DarDarDarDar eseseses SalaamSalaamSalaamSalaam
25 facilities25 facilities25 facilities25 facilities 1789178917891789
roomsroomsroomsrooms 2908 beds2908 beds2908 beds2908 beds
SelousSelousSelousSelous
13 facilities13 facilities13 facilities13 facilities 148148148148
roomsroomsroomsrooms 313 beds313 beds313 beds313 beds
KaratuKaratuKaratuKaratu////ManyaraManyaraManyaraManyara
15 facilities15 facilities15 facilities15 facilities 445445445445
roomsroomsroomsrooms 890 beds890 beds890 beds890 beds
TangaTangaTangaTanga,,,, PanganiPanganiPanganiPangani,,,, SaadaniSaadaniSaadaniSaadani,,,,
UsambaraUsambaraUsambaraUsambara, Amani &, Amani &, Amani &, Amani &
BagamoyoBagamoyoBagamoyoBagamoyo
16 facilities16 facilities16 facilities16 facilities 250250250250
roomsroomsroomsrooms 567 beds567 beds567 beds567 beds
KataviKataviKataviKatavi &&&& MahaleMahaleMahaleMahale
3333 facilitiesfacilitiesfacilitiesfacilities 44444444
roomsroomsroomsrooms 78 beds78 beds78 beds78 beds
MikumiMikumiMikumiMikumi NP,NP,NP,NP, MorogoroMorogoroMorogoroMorogoro,,,,
MufindiMufindiMufindiMufindi &&&& UdzungawaUdzungawaUdzungawaUdzungawa
7 facilities7 facilities7 facilities7 facilities 131131131131
roomsroomsroomsrooms 228 beds228 beds228 beds228 beds
GombeGombeGombeGombe,,,, KigomaKigomaKigomaKigoma &&&&
RubondoRubondoRubondoRubondo
3333 facilitiesfacilitiesfacilitiesfacilities 15151515
roomsroomsroomsrooms 31 beds31 beds31 beds31 beds
WMAs
21 facilities 352
rooms 709 beds

7. How?
Provide legal, professional and technical advice
Lobbying and advocate for policy, legal and regulatory
reforms that positively impact the industry, overall
economy and society
Goal
Make the Tanzania hospitality industry globally
competitive and viable for investors, employers,
employees, local communities, suppliers and
Government

8. Tanzania
More than doubling of
international arrivals from 501k to
1.2 mn and US$799 mn to US$2 bn
674 mn to 1.2 bn international arrivals
worldwide spending from US$495mn to
US$1.25 trillion
Sub-Saharan Africa more than doubling to 34.4
mn, but still representing only 3% of global
tourism -- the lowest volume of any region.
Only 2.1% of global tourism spending!

9. From Booking to ToursFrom Booking to ToursFrom Booking to ToursFrom Booking to Tours
& Services In& Services In& Services In& Services In----CountryCountryCountryCountry
Booking
• Agency
• Online
• Tour operator
Transportation
• Air
• Car rental
• Taxi
• Ferry
Accommodation
• Hotels
• Apartments
• Shops in hotels
Food & Beverages
• Restaurants
• Bars
• Food kiosks
• Food souvenirs
Handicrafts
• Shops
• Craftsmen
• Workshops
Tourism Assets
• Natural – Wildlife,
Parks, Mountains,
Lakes
• Cultural –
Archaeological sites,
museums, art, music.
Leisure & Tours
• Tour guides
• Tours
• Wellness
Support Services
• Info Centers
• Grocery
• Laundry
• Banking

10. From PurchaseFrom PurchaseFrom PurchaseFrom Purchase
Overseas to MoneyOverseas to MoneyOverseas to MoneyOverseas to Money
Entering TanzaniaEntering TanzaniaEntering TanzaniaEntering Tanzania
At long last, I have 8 days8 days8 days8 days
and $8000$8000$8000$8000 to visit the
Serengeti and Ngorongoro!
My travel agent is booking
with a great operator
Joe paid for his dream
trip. I subtracted my
24% commission24% commission24% commission24% commission and
booked with the “On
Safari” Agency.
Mike called me to
book Joe’s Trip. He
paid $6080paid $6080paid $6080paid $6080. I
deducted my 14%14%14%14%
commissioncommissioncommissioncommission and I
transferred $5228transferred $5228transferred $5228transferred $5228 to
the Serengeti Lodge.
$5228 to$5228 to$5228 to$5228 to
TanzaniaTanzaniaTanzaniaTanzania

11. What happens whenWhat happens whenWhat happens whenWhat happens when
the money entersthe money entersthe money entersthe money enters
TanzaniaTanzaniaTanzaniaTanzania
Ok, “On Safari” sent me
$5228 for Joe’s stay of
8 nights8 nights8 nights8 nights. My staff and I are
glad to have the business,
but first things first – a few
taxes and fees to pay.
Ay yi yi…let’s see
what we have to pay.
I’m all for paying our
fair share, but this is
painful. Let’s do the
math.
Serengeti Lodge Serengeti Lodge
Ok, I start with $5228start with $5228start with $5228start with $5228
and then pay VAT, TDLpay VAT, TDLpay VAT, TDLpay VAT, TDL
and Park Feesand Park Feesand Park Feesand Park Fees , which
leaves me with $4800$4800$4800$4800
$4800$4800$4800$4800
remainingremainingremainingremaining

12. What happens whenWhat happens whenWhat happens whenWhat happens when
the money entersthe money entersthe money entersthe money enters
TanzaniaTanzaniaTanzaniaTanzania
I don’t want to bore you
with a long list and we
do not want to whine,
but we need to mention
a few numbers.
So here is what happens:
$4800 less $4368$4800 less $4368$4800 less $4368$4800 less $4368 for
Cost of Sales, Salaries,
Marketing and Overhead
= $416= $416= $416= $416
Then I pay the
Corporation Tax of 38%Corporation Tax of 38%Corporation Tax of 38%Corporation Tax of 38%
and I am left with $256left with $256left with $256left with $256.

13. What happens whenWhat happens whenWhat happens whenWhat happens when
the money entersthe money entersthe money entersthe money enters
TanzaniaTanzaniaTanzaniaTanzania
So…the Lodge is good forSo…the Lodge is good forSo…the Lodge is good forSo…the Lodge is good for
Government: Over $1500Government: Over $1500Government: Over $1500Government: Over $1500
in payments from a singlein payments from a singlein payments from a singlein payments from a single
visitor’s stay.visitor’s stay.visitor’s stay.visitor’s stay.
It is also good for theIt is also good for theIt is also good for theIt is also good for the
staff and their families.staff and their families.staff and their families.staff and their families.
And good for our guests.And good for our guests.And good for our guests.And good for our guests.
But a business is supposed to beBut a business is supposed to beBut a business is supposed to beBut a business is supposed to be
profitable and the math is not addingprofitable and the math is not addingprofitable and the math is not addingprofitable and the math is not adding
up well for me.up well for me.up well for me.up well for me.
EitherEitherEitherEither I increase prices, which is goingI increase prices, which is goingI increase prices, which is goingI increase prices, which is going
to make me less competitive, or I closeto make me less competitive, or I closeto make me less competitive, or I closeto make me less competitive, or I close
and find a more profitable business.and find a more profitable business.and find a more profitable business.and find a more profitable business.
OrOrOrOr I work with HAT and the GovernmentI work with HAT and the GovernmentI work with HAT and the GovernmentI work with HAT and the Government
to find “Winto find “Winto find “Winto find “Win----Win” Solutions!Win” Solutions!Win” Solutions!Win” Solutions!

14. 2014: Total Jobs (direct, indirect & induced):
1,337,000 jobs (12.2% of total)
2025: Total Jobs: 1,695,000 (11.5%)
Jobs in hotels, travel agencies, airlines and other
passenger transportation services, restaurants, leisure
and with suppliers and services such as construction,
printing, and finance.

15. In 2015…
Tourism was reported to have earned
US$2.2 billion / TZS 4.8 trillion.
In 2014…
Tourism contributed TZS8.2 trillion
(14%) to GDP and will rise to TZS15.8
trillion by 2025 (13.2%).
Tourism earned more in foreign
exchange than Gold.
Visitor Exports totalled TZS3.4 trillion
(22%) and will rise to TZS5.7 trillion by
2025 (21%).

16. 

17. PolicyPolicyPolicyPolicy
Product &Product &Product &Product &
MarketingMarketingMarketingMarketing
HumanHumanHumanHuman
ResourcesResourcesResourcesResources
InfrastructureInfrastructureInfrastructureInfrastructure
InvestmentInvestmentInvestmentInvestment
•National College system in place
•Certified Apprenticeship Proramme in
Hotel Operations in place (2014)
•Expanding Airports
•Coastal Road
•Tax holiday for new investors
•World Class Wildlife Diversity
•Rich cultural heritage
•Growing visitors and receipts
•Government currently considering
reforms on taxes.

18. Coastal tourism is undeveloped.
The Southern Circuit offers rich opportunities for
expanded wildlife opportunities.
National Parks are congested - WMAs
are tourism next level of growth.
Wildlife Management Areas (WMAs)
are rarely visited.
21 WMAs are certified by the
Community Wildlife Management
Areas Consortium for communities to
provide tourism services. ONLY 4 are
working and benefiting the intended
communities.
Mafia Island - Tanzania is home to the 3rd largest
Marine Park in the World.

19. Kudos for Tanzanian Tourism!Kudos for Tanzanian Tourism!Kudos for Tanzanian Tourism!Kudos for Tanzanian Tourism!
1 of top 5 African
countries with the
highest tourism
potential
Voted among top 10 Safari Destinations
Voted BEST beaches in AFRICA
Rank 7th worldwide
for tourism related
natural resources

20. The Bad News! Weaknesses & ThreatsThe Bad News! Weaknesses & ThreatsThe Bad News! Weaknesses & ThreatsThe Bad News! Weaknesses & Threats
PolicyPolicyPolicyPolicy
Product &Product &Product &Product &
MarketingMarketingMarketingMarketing
HumanHumanHumanHuman
ResourcesResourcesResourcesResources
InfrastructureInfrastructureInfrastructureInfrastructure
InvestmentInvestmentInvestmentInvestment
•Unclear policies and regulations
•Multiplicity of taxes, levies and fees
•Lack of Policy Coordination
•National College not filling skills gap
•Tourism Development Levy funds not fully tapped
•Labor laws restrict non-residents and cross-border flow.
•Limited Tourism Infrastructure limits access to South
•Impacted by Tax Policy and Regulatory Requirements.
•Land not readily available to investors
•Inadequate marketing and branding
•Wanton destruction of natural assets

21. SUSTAINABILITY & COMPETITIVENESS
Preservation
of Natural
Assets
Business
Climate
Human
Resources
POLICY
REFORMS

22. Top Issues
Poaching of Elephants, Lions and Rhinos
Dynamite Fishing and Poisoning
Encroachment
Desertification
No Wildlife!
No Tourism!
Potentially more than 1 million jobs lost!

23. 2009 – 2014
Tanzania lost
(60% loss in 5 years)
(Source: MNRT)
44,000 Elephants
Elephant population in
Selous-Mikumi 1976 -
2013
(Source:Source:Source:Source: TAWIRI (2013)
No Wildlife = No TouristsNo Wildlife = No TouristsNo Wildlife = No TouristsNo Wildlife = No Tourists
No Tourists = +1 Million Jobs lostNo Tourists = +1 Million Jobs lostNo Tourists = +1 Million Jobs lostNo Tourists = +1 Million Jobs lost
Tanzania’s elephants, lions and rhinos are being decimated through poaching.

24. Our rich coastal tourism potential is being destroyed before we can
develop and protect it for our country and world heritage.
The ONLY AFRICAN
COUNTRY where
dynamite fishing
occurs.

25. 30% of protected
areas are encroached
Land encroachment and DesertificationLand encroachment and DesertificationLand encroachment and DesertificationLand encroachment and Desertification
From 2005 to 2010 deforestation led to a loss of 4030 km2 of forest per year
Tanzania ranked 17th in the world for
average annual area of deforestation
and 3rd in Africa

26. Top Issues
National College lacking resources to fill the skills
gap. TDL is supposed to help, but the College
receives less than what is needed.
More faculty capacity building needed
More private sector cooperation
Non-citizen labor restricted
Young industry needs labour development
Increased capacity needed in MNRT
Increased local and community capacity needed
Insufficiently trained and educated people
in tourism = Unsustainable, lower quality
tourism!

27. Overall, low rankings for Tanzania’s business climate in general and specifically for tourism!
117th/167– Better
than Kenya (139th)
and Uganda (139th)
120th/140 – Better
than Zimbabwe
(126th) , but worse
than Kenya (99th),
Uganda (115th) and
Rwanda (58th).
93rd/141 – Better
than Zimbabwe
(115th) Rwanda
(98th) and Uganda
(114th), but worse
than Kenya (78th).
139th/189 – Better
than Zimbabwe
(155th) , but worse
than Kenya (108th),
Uganda (122nd) and
Rwanda (62nd).

28. All three issues are inter-connected!
Unclear policies,
institutions &
regulations.
Lack of Policy
Coordination.
Multiplicity of
taxes, levies and
fees.

29. 53 different taxes, levies
and charges that are
applicable to businesses
within the Tourism sector
Hospitality Industry
pays 35+ different taxes,
licences, levies, fees
and charges;
Air operators pay 40
taxes and fees
The average effective
tax rate for tourism
businesses is 48%;
Nuisance taxes – study
shows 24 taxes
represent only 4% of
total tax revenue.
Taxes collected
by TRA
•Corporate Tax (30%)
•Skills and Development
Levy (5%)
•Staff Pensions (10% from
employer)
•Land Rent
•Property Tax and Land
Rent
•City Service Levy
•EWURA tax (2% of billed)
•REA Tax (3% of billed)
•Airport tax
•VAT
•Tourism Development Levy
Regulatory License,
Fees & Permits
•Tourism Agency License
(TTLB)
•Business License Category
A or B
•Work Permits
•Fire Certificate
•Motor Vehicle Road
License
•Vehicle Fire Safety sticker
•Vehicle Inspection
•Vehicle Safety Week
Sticker
•Firearms License
•Occupational Health and
Safety Authority (OSHA)
•Performance/
Entertainment License
•Frequency Radio License
•Base station license
Other Fees, Levies
and Charges
•Certificate of Incorporation
•Business Registration
name
•Stamp duty on rent
•Liquor license
•Music/TV license
•Concession Fees
(TANAPA, NCCA, and
Marine Park Service)
•Ngorongoro Crater Fees
•Hunting Block Fees
•Conference Hall
Registration
•SUMATRA Vehicle Sticker
•Motor Vehicle Guide Fees
•Walking Guide Fees
•NCAA Vehicle Fee
Some of the fees on the MNRT Website

30. PolicyPolicyPolicyPolicy
ReformsReformsReformsReforms
that…that…that…that…
Enable our Businesses toEnable our Businesses toEnable our Businesses toEnable our Businesses to
sustainably growsustainably growsustainably growsustainably grow
Build the capacityBuild the capacityBuild the capacityBuild the capacity
of our institutionsof our institutionsof our institutionsof our institutions
Build the capacityBuild the capacityBuild the capacityBuild the capacity
of Tanzaniansof Tanzaniansof Tanzaniansof Tanzanians
GovernmentGovernmentGovernmentGovernment
+ Private+ Private+ Private+ Private
SectorSectorSectorSector
CooperationCooperationCooperationCooperation
From Issues to SolutionsFrom Issues to SolutionsFrom Issues to SolutionsFrom Issues to Solutions

31. Centre of Excellence – develop National College of
Tourism (Bustani Campus) into a Centre of Excellence
Work Permits - Improve processing for key professions
unavailable locally
Labor Law – Review law and regulations to be
balanced, and not over protective of employees
TDL – Increase allocation for the College.
PPP to grow the national apprenticeship program.

32. Declare Poaching, dynamite fishing and poisoning as national
security threats in addition to bringing back the national anti-
poaching operation
Combat crimes such as encroachment of wildlife areas,
deforestation and desertification; enforce deterring measures
Strengthen and enforce stiff laws – providing for life sentences
for the more serious environmental crimes
PPPs to manage WMAs, forests, coastal areas and islands, and
tourism hunting.

33. Support Government Revenue Collection, but…
Rationalize and Streamline ALL Tourism-related
Taxes, Licenses and Fees.
Centralize Tax Collection into a One-Stop Shop
Merge tourism institutions into a single, well-
integrated and coordinated organization.
Specific Measures:
Reduce and harmonize LGA taxes
Allow a minimum period of 12 months notice
and consultations before introducing increases
in fees, levies and other charges.

34. Establish a Business Tax Working Group via
Ministry of Finance
Convene Ongoing PPP Forums to Review and
Rationalize Taxes, Fees, and Regulations
Consider us your partners in optimizing the
effectiveness and services of Government.
Communication and Coordination are
essential to ensuring a sustainable and
competitive tourism and hospitality
sector and implementing the proposed
solutions.
Tourism is Everybody’s Business! So the fewer barriers to
business, the more benefits for Tanzania, Tanzanians and
Businesses!