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Tanzania
Banking on Results from its 1st Tourism Investment
Forum The Tanzania
Tourism Investment Forum, hosted by the Honorable
Zakia Hamdani Meghji, MP, Tanzania's Minister of
Natural Resources and Tourism, was held at the
Arusha International Conference Center, October
22-24, 2002. The public and private sector
endorsement of the forum was evidenced by the
participation of a cross-section of government
ministers and senior representatives, including
ministries of agriculture, land , public works and
utilities; Tanzania Investment Corporation and The
Tanzania Association of Tour Operators. This was
indicative of the Tanzanian government's
recognition of the major role that tourism
development plays in job creation and improving the
country's economy. (see Investment
Buzz)
"We
have a unique tourism product mix. We must keep it
unique by sustaining it. A correct balance has to
be established between exploitation and
conservation; and between economic interests and
the social, environmental and cultural impact of
human activity in tourism. " President Benjamin
William Mkapa, The United Republic of Tanzania TANZANIA'S
PRESIDENT THROWS OPEN THE DOORS TO FOREIGN
INVESMENT IN TANZANIAN TOURISM. In a
ground-breaking speech, addressing the first-ever
tourism investment forum in Africa organized by the
the Multilateral Investment Guarantee Agency
(MIGA), a World Bank Group, Tanzania's President
Benjamin William Mkapa, (photo above left) opened
the doors to foreign investment in
tourism.
The fact that
the closing address two days later was given by
Zanzibar President Amani Abeid Karume made it clear
that Zanzibar is also welcoming foreign investors
into their growing tourism industry. The Investment
forum in Arusha, at Mount Kilimanjaro's doorstep,
attracted more than 280 local and foreign investors
from the United States, Europe, Middle and Far East
and Africa, who attributed the success of the forum
to a new environment of opportunity for tourism
investment in Tanzania, as key policy reforms
coincide with increased international tourist
traffic for high end destinations. Sandeep Khapre,
Director, Marketing and Business Development, DCDM
Consulting representing investor clients, in a BBC
World Service radio interview about the Investment
Forum, reinforced the investors' optimism about the
growth of Tanzania tourism, "Tanzania is attractive
to investors because it has great long term
branding - the Serengeti, Ngorongoro Crater, Mt.
Kilimanjaro and the Selous - and there is
confidence in the government's stability and
long-term commitment to wildlife conservation."
Khapre also noted that the investment policies are
"getting better by the day." There was
particular interest in a variety of tourism
ventures from the Southern Circuit of Selous
National Park and Ruaha Game Reserve to Matwara and
other newly introduced tourism products (adventure
tourism, birding, diving and sports fishing). The
few remaining hotels in public hands are also up
for privatization. Recent tourism-related foreign
investments include the Holiday Inn and Golden
Tulip Hotels, both in Dar es Salaam; a new lodge in
Ruaha; Serena Mountain Village Expansion in Arusha;
major roads, Arusha to Ngorongoro and Dar es Salaam
to Bagamoyo; the Rufiji River Bridge; and the
Kilimanjaro and Mbeya airports. Foreign investors
at the event represented Midrock, Legacy Hotels,
Holiday Inn, Southern Sun, Serena Lodges and Hotels
and Golden Tulip. Local Tanzanian investors
included Coastal Aviation, Precision Air, Ranger
Safaris, Leopard Tours, and Peacock Hotel, all of
whom are expanding their operations inside the
country. A Model for
Tomorrow's Tourism. Will Tourism Drive Tanzania's
Economic Engine? Most delegates to
the Investment Forum agreed when asked that
"Responsible and Community-Based Tourism" is
definitely an engine to drive today's economy in
Tanzania and other African countries that are
fortunate enough to follow its lead. What better,
more practical, eco-friendly and safety- minded
route is there for job creation and the possibility
of poverty alleviation? The Hon. Zakia Hamdani
Meghji, Tanzania's Minister for Natural Resources
and Tourism made that goal a main theme, "Tourism
is a major economic sector in Tanzania. It is also
a sector that is destined to grow and expand
further. At a conservative annual growth rate of 7
percent over the next decade we would be able to
reach the one-million visitors target set for the
year 2010." She further stated that Tanzania has a
master plan for tourism that was completed with the
assistance of the European Union. And now "in order
to achieve the target of visitors the industry needs
proper planning and an articulate Program of Action
which would detail all sets of implementation
schedules…above all it needs a
well-coordinated approach on promotion and
marketing in our traditional markets and also
finding new markets." Iain Christie,
MIGA Project Manager, praised the Ministry's
effort, "What the Tanzania Tourism Investment Forum
does prove is that given the right conditions and
meeting firm fiscal disciplines, remarkable results
are possible." He feels that at the base of
Tanzania's success is the right attitude --- a
burning desire to change the status quo. What ís
the Prime Ingredient? The Tanzanian
People. President Benjamin
William Mkapa paid tribute to the real force behind
this moment of change - the people of Tanzania and
Zanzibar. "One of our strongest points is our
hospitality. I cannot speak for every Tanzanian,
but it is generally acknowledged that our people
are kindhearted; that they reach out warmly to
guests, and are friendly, respectful and of
generous spirit. In short, in a world that is so
much in a rush, our people have not rushed to shed
their firm belief in, and staunch commitment to, a
dignified universal common humanity."This, together
with a sound program of capacity building, should
ensure a cadre of professionally trained
staff. Increased Air
Access a Factor A positive sign
and true measure of Tanzania's success in building
a solid tourism base is the vast improvement in air
access to and within Tanzania, such as KLM's daily
service to both Kilimanjaro International Airport
(newly privatized) and Dar es Salaam; British
Airlines new direct service to Dar es Salaam,
Ethiopian Airlines with direct access from North
America's Dulles Airport in Washington DC and
Newark International Airport, and South African
Airlines from Atlanta and New York's John F.
Kennedy International Airport. Such expansion of
service from the airlines demonstrates that they
are confident in the country's future. Tanzania is
also well served by local carriers, such as Coastal
Aviation and Precision Air. His Exellency
Mkapa's Four Pillars of the New Tourism
Scene While President
Benjamin William Mkapa agreed that for years, his
country was under-aggressive in promoting tourism,
things have turned 180 degrees in recent years. He
emphasized that Tanzania now offers a wide range of
multi-destination and multi-activity holidays
thanks to careful planning, budgeting and inventory
development. He laid out his four pillars of
success as follows: (1) Tanzania has a unique
product that needs to be showcased and recognized
more than ever before. (2) The timing for doing so
is right, and it is now. (3) Tanzania's government
and its leader have a deep commitment to dialogue.
(4) These forums provide an excellent opportunity
for such dialogue. Today's potential for mutually
rewarding investments and cooperation in the
tourism sector is greater than ever before.
Speaking of the
new Tourism Confederation of Tanzania, President
Mkapa emphasized its obligation to encourage,
facilitate and empower local investors in the
tourism industry, not just in major hotels and
lodges, but also in a whole variety of services.
"We should encourage and facilitate domestic
tourism among Tanzanians. This will help to expand
local value-added to the tourism sector, and make
the many linkages to the rest of the economy
provided by tourism a potent weapon in our war on
poverty," the President added. New Bonds of
Trust in Public and Private Sector The President
emphasized how opportune the Tanzania Tourism
Investment Forum was in its timing, "The economic
reforms that we have been carrying out over the
last seven years have been both resolute and
consistent. Today, when we say we are ready to work
with the private sector in promoting and
engendering growth and development, everyone takes
us seriously. We can be trusted. And we have behind
us a solid track record to prove it." "We have gone out
of our way," said President Mkapa, "to create a
conducive climate for investment and trade. The
macro-economic fundamentals have been in place for
several years now, to the commendation of
International Financial Institutions and our
bilateral development partners. The economic policy
reforms we have undertaken have confirmed Tanzania
as a market economy, with ample incentives to
attract, retain and reward investments and
entrepreneurship. And, all this takes place in a
democratic peaceful, united and stable country."
Getting closer to home, he is pleased that
investments in upgrading tourism-related
infrastructure have begun to bear fruits, saying.
"It is true much remains to be done, and part of
our challenge at this forum is to attract
investments in such infrastructure. But compared to
where we came from, and with the imminent
privatization of our national airline, we think we
are beginning to effectively address the
infrastructure problems that obstructed the faster
growth of tourism in the past." Forum a Who's
Who of Business, Industry and
Government Among the
international notables present were Dr. Ken Kwaku,
Program Manager for MIGA Africa and Mr. Dawid de
Villiers, Deputy Secretary-General of the World
Tourism Organization (WTO). A quick look at the
roster was like reading a corporate and public
who's who - the International Finance Corporation,
the European Union, the Japanese and Swiss
Governments, Netherlands Development Organization,
the World Bank, Development Bank of Southern
Africa, Southern African Development Community, the
African Union, and its NEPAD economic program,
Tanzania Private Sector Foundation, Economic and
Social Research Foundation, National Social
Security Fund, National Development Corporation,
Tanzania National Parks, Marine Parks and Reserves,
the Africa Travel Association and the newly formed
Tourism Confederation of Tanzania. The
Forum…Just the Beginning Hon. Meghji in her
closing remarks made it clear that this forum "is
not the end of our process to encourage investment
in tourism in Tanzania. Instead, it is only the
beginning." Four other cabinet ministers
representing key portfolios, plus officials from
the Zanzibar Ministry of Tourism joined Hon.
Minister Meghji. At a festive dinner sponsored by
the Southern Africa Development Bank. The Minister
was enthusiastically applauded when she said "I,
personally, promise you that my ministry, and the
other ministries, are committed to following up on
all the issues raised at this forum by the private
sector." The Tanzania private sector, in
recognition of Minister Meghji's outstanding
leadership in bringing Tanzania tourism so far
since her appointment in 1997, gave her the
honorary title of "Mama Utalii" (Mother
Tourism). Investment Web
Site Launched Mr. Saleh Pamba,
Director of Tourism in the Ministry for Natural
Resources and Tourism, and conference coordinator,
said that a special web site was specifically
created for the Investment Forum,
http://www.investintanzania.com, which will provide
an ongoing menu of Tanzania Tourism projects. "This
web site will also serve as a substantial in-depth
view and tool for major privatization projects as
well as for smaller-scale projects designed by
local Tanzanians. This way potential investors can
identify projects of interest to them and follow
through quickly and conveniently." Pamba was
optimistic that the high profile event attracted
international attention for tourism investment
opportunities in Tanzania. He also noted that there
were several large and prominent investors unable
to attend the Forum who had expressed interest in
the privatization options in Tanzania. In addition
to the menu of investment opportunities on the web
site, MIGA noted that the next steps included
maintaining investors lists and disseminating
information on new tourism investment
opportunities, investigating potential financial
sources for tourism and taxation and a targeted
investment promotion program by the Tanzania
Investment Corporation and the Ministry of Natural
Resources and Tourism. The Tanzania
Tourism Investment Forum was hosted by the Ministry
of Natural Resources and Tourism, under the
auspices of the Hon. Zakia Hamdani Meghji, MP; Mr.
Solomon Odunga, Permanent Secretary; Mr. Saleh
Pamba, Director of Tourism and Conference
Coordinator; Mr. Peter Mwenguo, Managing Director,
Tanzania Tourist Board. The forum was organized by
MIGA, Dr. Ken Kwaku, MIGA Africa; David Bridgman,
Program Director, Iain Christie, task team leader;
Shantal Persuad, Conference Coordinator. ABOUT
TANZANIA The United
Republic of Tanzania, with a population 35 million,
is East Africa's largest country and lies just
south of the Equator on the Indian Ocean Coast.
Until recently, known as the Land of Kilimanjaro
and Zanzibar, the Tanzania Tourist Board is
launching a new "tag line"- Tanzania - the
Authentic Africa. Arusha, where the forum was held,
is also known as the Capital of the Tourism
Industry, being close to Mt. Kilimanjaro, and
headquarters for safaris into the Serengeti,
Ngorongoro Crater and other sites on the Northern
Circuit. An upgraded Kilimanjaro International
Airport serves the area. However, with the new
Master Plan, the investment push is to develop the
less crowded Southern Circuit, which includes the
Selous, the second largest game reserve in Africa
and one of six UNESCO World Heritage Sites in
Tanzania. The others are Mt. Kilimanjaro,
Ngorongoro Crater, Serengeti National Park,
Zanzibar's Stone Town and Kilwa Kisiwani/Songo
Mnara ruins in Lindi region. Bagamoyo, former
center of the slave route is also being proposed
for a World Heritage listing.
by
Jerry W. Bird
Investors at Tanzania Tourism Investment Forum 2002
learn that Opportunities abound in Africa's newest
"hot-spot" for travelers looking for adventure,
wildlife, culture, diving and even luxury. Tanzania
Tourism Investment Forum 2002, Africa's First
-Ever, Organized by the Multilateral Investment
Guarantee Agency, resonates success. Looking at the
Big Picture, Arusha Tourism Conference could be a
"Blueprint" for Africa's Future.
