TANZANIA’S tourism sector
has come under pressure
after the government
announced that some
establishments in the country’s
national parks were liable for
an increase in concession fees
of between US$30 (R370)
and US$100 (R1 234) per
person per night.
Ceo of the Hotel Association
of Tanzania (HAT), Lathifa
Sykes, says the increase will
affect the future of Tanzania’s
tourism industry. “Tourism
is a global business that
is very sensitive to price.
Should Tanzania become
too expensive, our hard-won
tourists may go to other
destinations perceived to be
better value.”
Furthermore, the sudden
increase in fees creates
immense business challenges.
For example, says Lathifa,
package rates have been
published until 2016 without
taking into consideration
this massive increase.
“Either the establishments
need to absorb the new
cost or they need to pass
it on to customers and risk
cancellations.”
The issue was first raised
in 2011 when The Tanzania
National Parks Authority
(Tanapa) wanted to impose
a flat fixed-rate fee per bed
night sold as opposed to 10%
of the half-board rate, which
varied and meant lower level
establishments paid less than
high-level establishments.
At that time, HAT, which
represents 78% of the
permanent accommodation
facilities within the national
parks in Tanzania, took Tanapa
to court over the increase. In
September 2014, the High
Court found in favour of HAT
and ruled that the new fixed
rates were not legally in force
as they had not been gazetted.
Following the ruling,
Tanapa decided to legalise
the imposition of fixed fees
through two government
notices – the first imposing
fixed rates of concession
fees from July 1, the second
backdating the implementation
time to May 28.
Lathifa says: “The notice
covers only 27 lodges out of
44 accommodation facilities
in national parks. Why do
the other 17, which we know
pay concession fees, remain
excluded in the Gazette? For
most lodges covered by the
Gazette Notices, the increase
from the present 10% halfboard
formula to the new
fixed rate represents an
increase of between 200%
and 1 000%! Which begs the
question, is Tanapa victimising
hotel investors that took them
to court?”
