EATP - Challenges Facing Tourism in East Africa

EAST AFRICA TOURISM PLATFORM

CHALLENGES FACING TOURISM IN EAST AFRICA

MATRIX OF ISSUES FACING TOURISM IN THE EAST AFRICAN COMMUNITY Issue

Challenges

Intervention

Responsibility

KENYA Treatment of Tourist Service Vehicles registered in EA partner state

Open Skies Policy

Double Taxation

• Revocation of 1985 Bilateral Trade agreement between Kenya and Tanzania on Tourism which placed restrictions on free cross border movement for TSVs and persons as well as tour guiding in the partner states parks.

Respective ministries responsible for wildlife management

• EAC partner state treat cross border flights within the Region as foreign air operations and are subjected to ad hoc License restrictions

• Develop and implement an EAC open skies policy to facilitate easy cross border movement to support regional tourism, transport and trade

Ministry of Transport & Infrastructure

• Prohibitive taxation regime characterized by fragmented and costly licenses; • Overlap in taxes levied by the national and county governments

• Set a single business permit (inclusive all permits) and make it easy to comply with.

• Rationalize levies and taxes between the central government and central government.

• Ministry of Finance

• Inadequate regulatory framework for beach security, resulting in declining number of visitors to the beach

• Develop a beach management framework such as a regional Beach Management Council to act as a joint enforcement machinery for all beach management laws and regulations and address regulatory gaps.

Ministry of Environment and Natural Resources

• Lack of access to the foreshore as more and more real estate and industrial development take place; • A general lack of necessary facilities (including bathrooms, changing rooms, showers, sun shades, lifeguards and lifesaving equipment) on the foreshore.

• Classify beach trade and activities stipulate stiff monetary penalties for noncompliance with beach related laws. Establish beach markets to promote economic activities by local populations to ensure they benefit from tourism activities.

Ministry of Environment and Natural Resources

• Tourist service vehicles registered in Kenya are denied entry into the United Republic of Tanzania’s national parks • Work permit requirement for tour leaders from Kenya to enter Tanzania

• VAT levied on tourism services which is in the same instance regarded an export Beach management

Beach Trade Regulation

EAST AFRICAN TOURISM PLATFORM | www. ea-tourism-platform.org

Respective Departments of Immigration

• Ministry of Tourism

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Issue

Challenges

Intervention

Responsibility

RWANDA Ease of doing business

by Rwandan nationals in the region.

• This has been highlighted by a number of tourism operators who find it quite difficult to open/ own affiliate business in the other EAC countries due to local property ownership policies whereas Rwanda is open to all EAC nationals with no limitations

• Harmonize property ownership laws for all the EAC members • Harmonize requirements for opening business in all EAC member states

EAC ministries in member states

Harmonization of Tax rates like VAT on tourism services

• Rwanda 18% (before imposition of the new tourism levy in the cabinet for approval)

• VAT harmonization in all member states

Ministries of trade and commerce in member states

• Kenya(14% on services)

• A study should be done to see the reason for the difference in these fares

Ministries of finance in member states

• Uganda 18% • The difference in these VAT rates in the member states call for a difference in prices of similar service in the EAC states and this the below • Kenya 40 $ Airport Taxes

• Rwanda 20$ • Uganda 15$

• Harmonize these taxes for common pricing and selling of airport services

Government and civil aviation authorities

• Issuing and displaying of formal notifications to borders for passengers and travelers to see

Tourism ministries and EATP

• Tanzania (not sure) • The above difference in taxes by difference airports call for a difference in travel fares which increases individual state comparative advantage over the other More clarity on borderless boarders

Open airspace management

• This is still seen mostly in the fees charged by Rwandan safari cars while crossing to either Uganda or Tanzania • This should be considered and looked at as an incentive to the regional travellers.

• This will call for harmonized airport tax fares and hence reduction in the travel fares by the EAC nationals

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• More training of immigration staff on the prioritization of EATV • Harmonization of air ticket regulations in all member states

• Member states and civil aviation authorities

• Develop and implement an EAC open skies policy to facilitate easy cross border movement

EAST AFRICAN TOURISM PLATFORM | www. ea-tourism-platform.org

Issue

Challenges

Intervention

Responsibility

BURUNDI East Africa Tourist Visa

• Burundi cannot benefit from the positive impact of the single tourist visa already adopted

by Kenya, Rwanda and Uganda • Burundi loses out on the opportunity to be promoted as one EAC tourism destination • By being part of the single tourist visa, Burundi would have the gain exposure and increase the possibility of getting tourists from countries where it doesn't have diplomatic missions (e.g. : Burundi have only 3 diplomatic representations in the Asian Continent while Kenya, Rwanda, Uganda are largely present across that continent)

Suppression of visa at arrival

Use of national ID as travel document in EAC

• With Burundi having very few diplomatic missions across the world, it is very hard for visitors to look for a visa; this represents a significant barrier as most tourist find it inacceptable.

• Burundi citizens do not benefit from the free movement within the EAC space

• The final Document discussed through public and private partnership has been drafted and is currently at Government’s desk for adoption and signature.

Tourism Chamber of Burundi Government of Burundi

• The Tourism Chamber is pushing the Government to adopt the EAC single tourist visa.

• The Tourism Chamber is lobbying for the Government to reestablish visa issuance at arrival

The immigration services

• The Tourism Chamber is lobbying for the Government to address the issue

Burundi Tourism Chamber

• The Tourism Chamber is drafting a paper to launch a study on a national day for the Burundi sacred drums

Burundi Tourism Chamber

• The Tourism Chamber is continuously lobbying for the Government to address the issue.

Burundi Tourism Chamber

Government of Burundi

• Burundi is slowing down the possibility to get the true EAC citizenship Lack of annual national Tourism Fair

EAC air space block

• Burundi is the only EAC member state without such an important promotion event.

• Burundi is now the most expensive destination within EAC member states • Burundi has no more national or private air operator company

Government of Burundi

• That situation limits the flow of tourists to Burundi but also the possibility of a national transport incentive policy.

EAST AFRICAN TOURISM PLATFORM | www. ea-tourism-platform.org

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Issue

Challenges

Intervention

Responsibility

UGANDA Taxation

• There are various taxes on Tourism services.

Tour Operators are expected to pay VAT on the total tour package invoice value instead of the commission earned

• Tourism should be seen as invisible export where VAT is not applicable • One single tax should be applied on the Hotel Industry

Ministry of Finance Ministry of Tourism Ministry of Gender Ministry of East African Affairs

• There are several taxes on Hotels, these include payee, trading licence, Local Government tax, income tax, VAT, Restaurant tax, bar tax, swimming pool tax, music tax, lift tax, estimated electricity tax bill (Not real consumption bill) Tourism infrastructure

• Tourism roads to most tourists’ centres are inaccessible. These include: o Rukungiri-Buhooma o Katunguru via Ishasha to Buhooma o Buhooma-Ruhija- Muko

• Easy access to the Tourism products by tarmacking the roads mentioned

Ministry of Works

• Need of having internet in the tourists’ centers for easy communication by both Operators and Tourists

Ministry of ICT (UCC)

UNRA UTA Ministry of Tourism UWA UTB

o Kisoro-Mgahinga Nsational Park o Kisoro-Rububuri- Rushaga o Mubuku- Nyakerengija – Rwenzori

o Off Bundibugyo- Ntoroko o Off Kayunga road- Wobulence o Ferry to Rutoboka Sasse Island o Kitgum-Kidepo o Kidepo via Kotido Kapchorwa junction • Limited access to internet in the tourist centres especially in the National Parks

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EAST AFRICAN TOURISM PLATFORM | www. ea-tourism-platform.org

Issue

Challenges

Intervention

Responsibility

UGANDA Tourism marketing and promotion

• There is limited budget for Tourism promotion and marketing both local and international source market

• There is need to put in place budget allocations for marketing and promoting tourism products

Ministry of Finance and Economic Planning Ministry of Tourism UTB UWA UTA

Tourism Capacity building

• Lack of trained personnel in hospitality and tourism • Lack of skilled labour

• To have short refresher courses for the sector players especially in the hotel industry (waiters, Managers, Tour Guides, Tour Managers, Product Managers) • Long term strategy of training Trainers

Ministry of Tourism UTB HTTI Wildlife Education Institute Makerere University Makerere Business school UTA

Destination accessNational Carrier and Inadequate air access (airports)

• Uganda does not have a National Carrier that brings in and out Tourist.

It only depends on other airlines.

• Air ticket prices to Uganda are higher than any other destinations in the Region • Less participation of the youth and women in the Travel industry

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• There is need for a National carrier to be able to use it as a tool of marketing tourism products in Uganda as a Tourist destination

Ministry of Finance

• Offer competitive air travel and employment for the youth

UTA

Ministry of Works and Transport Ministry of Tourism Civil Aviation Authority

• Easy accessibility for tourist to Uganda and East Africa as a region

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Issue

Challenges

Intervention

Responsibility

TANZANIA Destruction of Tourism Natural Assets. Tanzania’s main tourism is based around natural resources -assets (Wildlife, Mountains, Rivers & lakes, Forests, coast together with marine parks etc.). The WEF Global Travel & Tourism Report 2015 ranked TZ 7th (out of 141 countries in the World) for Natural Tourism Resources.

Continued destruction of these key assets will take away the competitive edge TZ has. This will impact tourism in TZ, regional tourism and as well as the EAC goal of promoting EA as Single Tourism Destination.

• Declining wildlife numbers through poaching – especially elephants. “No wildlife no tourism”.

• Destruction of coastal barrier reefs through dynamite fishing impacts development of coastal tourism on mainland.

• Livestock & human encroachment of protected areas are impacting the carrying capacity of the ecosystem.

• Deforestation on the rise and will lead into desertification.

• Loss of water sources and rivers impacting some of the protected areas.

• To put a STOP to this destruction and decline of Natural Assets. Efforts have begun: • Ministry of Natural Resources & Tourism (MNRT) has in place an anti-poaching program supported by International partners.

• Dynamite fishing is starting to be tackled by Ministry of Home Affairs MHA (Police Marine).

Government of Tanzania through Ministry of Natural Resources & Tourism; Ministry of Home Affairs; Police Force, Ministry of Agriculture, Livestock & Fisheries, Ministry of Lands, Housing & Human Settlement..

Private Sector through TCT and Member Associations.

• Encroachment is a problem yet to be fully addressed – requires political will, change of cultural traditions, introduction of modern livestock keeping, enforcement of laws in wildlife and protected areas.

• Deforestation, Water sources and rivers is also being addressed albeit slowly.

• Tourism Private Sector through TCT and Member Associations are engaging Government to ensure this war is won in the shortest time possible.

Limited Human Resource & Labour Market Development in the tourism sector. WEF Global Travel & Tourism Report 2015 ranked Tanzania 110 (out of 141 countries). The problem is a major skills gap in terms of quantity needed and kind of by the quality. This impacts, generally, the quality of services offered to guarantee value for money and kind of experiences sought by tourists. There a pocket of quality services but on the whole TZ has this limitation in skills.

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• Developing the right quality of skills and numbers of trained personnel required by the industry.

• Improving the quality of training institutions that will deliver the quality of output needed by the industry

• Private Sector is engaging Government (MNRT) to develop the National College of Tourism into a “Center of Excellence”.

Tourism Private Sector -TCT & HAT

• Tourism Private Sector through Hotel Association of Tanzania has rolled a Pilot Apprenticeship Training Program for Hotels in Dar es Salaam and Arusha to address both skills quality and number of personnel needed. This is a formal recognized training that is awarding National Certificates.

• The initial success of the Private Sector led program has encouraged Government to support the apprenticeship program by “scaling it up” with additional resources etc. In addition they are now working on a National Apprenticeship Framework to govern apprenticeship programs in all key industry sectors.

EAST AFRICAN TOURISM PLATFORM | www. ea-tourism-platform.org

Issue

Challenges

Intervention

Responsibility

TANZANIA Multiplicity of licenses, taxes, levies fees etc

• The Tourism investment climate is stifled with multiplicity of licences, taxes, levies, fees etc • For example Hotels have a total of Air Operators 115; Hotels 35; Hunting, 25; Tour Operators 23; Travel Agencies 10 • Through a dialogue process Government has in principle agreed to streamline and harmonize the multiplicity of licenses, taxes, levies, fees etc.

The process is however slow.

Inadequate marketing and branding of Tanzania Tourism

• Our Tourism Board is inadequately funded for effective promotion and marketing of destination Tanzania.

• There is a new International Marketing Strategy jointly developed

by Public and Private Sector. However, it required adequate funding.

Need for a new Tourism Policy, Legal and Regulatory Framework to guide tourism development in a new direction for the next level of growth

• Government (Ministry of Finance) has agreed to introduce a “one window payment “system. All payments are made at one window and Government then allocates it accordingly to the respective organs. This will reduce the cost of compliance.

• Tourism has been earmarked to undergo a “lab process “ which will involve various Ministries and Other departments sitting down with Private Sector, addressing all key bottlenecks and coming up with policy, legal and regulatory reforms required to take tourism to the next level of growth.

• There is a new levy (tourism development) introduced since 2013 to fund among other things Tourism Board. There are still niggling challenges in the collection and administration of the fund to really create the desired impact.

• Tourism Private Sector is engaging Government to address the challenges impacting the fund.

• Current Tourism Policy is over 12 years. There is need for a new vision to guide formation of a new Policy.

• Government has agreed to start a process to develop a new vision, policy, legal and regulatory framework.

• Current Legal and Regulatory framework and instruments are not propelling the kind of tourism development that Tanzania needs moving forward.

• This will involve all key stakeholders participating in this process.

EAST AFRICAN TOURISM PLATFORM | www. ea-tourism-platform.org

Ministry of Finance and Planning Ministry of Natural Resources and Tourism Tanzania Revenue Authority Ministry of Regional Administration and Local Government Tourism Private Sector – TCT and Member Associations

Ministry of Natural Resources and Tourism Tanzania Tourism Board Tourism Private Sector (TCT and HAT) that sit on the Fund Board on behalf of Private Sector.

Ministry of Natural Resource and Tourism Tourism Private Sector TCT and Member Associations And all Key Stakeholders

• It is expected the new instruments will resolve all if not most of the challenges currently impacting Tanzania tourism today.

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Issue

Challenges

Intervention

Responsibility

RWANDA Ease of doing business

by Rwandan nationals in the region.

• This has been highlighted by a number of tourism operators who find it quite difficult to open/ own affiliate business in the other EAC countries due to local property ownership policies whereas Rwanda is open to all EAC nationals with no limitations

• Harmonize property ownership laws for all the EAC members • Harmonize requirements for opening business in all EAC member states

EAC ministries in member states

Harmonization of Tax rates like VAT on tourism services

• Rwanda 18% (before imposition of the new tourism levy in the cabinet for approval)

• VAT harmonization in all member states

Ministries of trade and commerce in member states

• Kenya(14% on services)

• A study should be done to see the reason for the difference in these fares

Ministries of finance in member states

• Uganda 18% • The difference in these VAT rates in the member states call for a difference in prices of similar service in the EAC states and this the below • Kenya 40 $ Airport Taxes

• Rwanda 20$ • Uganda 15$

• Harmonize these taxes for common pricing and selling of airport services

Government and civil aviation authorities

• Issuing and displaying of formal notifications to borders for passengers and travelers to see

Tourism ministries and EATP

• Tanzania (not sure) • The above difference in taxes by difference airports call for a difference in travel fares which increases individual state comparative advantage over the other More clarity on borderless boarders

Open airspace management

• This is still seen mostly in the fees charged by Rwandan safari cars while crossing to either Uganda or Tanzania • This should be considered and looked at as an incentive to the regional travellers.

• This will call for harmonized airport tax fares and hence reduction in the travel fares by the EAC nationals

10

• More training of immigration staff on the prioritization of EATV • Harmonization of air ticket regulations in all member states

• Member states and civil aviation authorities

• Develop and implement an EAC open skies policy to facilitate easy cross border movement

EAST AFRICAN TOURISM PLATFORM | www. ea-tourism-platform.org

Issue

Challenges

Intervention

Responsibility

BURUNDI East Africa Tourist Visa

• Burundi cannot benefit from the positive impact of the single tourist visa already adopted

by Kenya, Rwanda and Uganda • Burundi loses out on the opportunity to be promoted as one EAC tourism destination • By being part of the single tourist visa, Burundi would have the gain exposure and increase the possibility of getting tourists from countries where it doesn't have diplomatic missions (e.g. : Burundi have only 3 diplomatic representations in the Asian Continent while Kenya, Rwanda, Uganda are largely present across that continent)

Suppression of visa at arrival

Use of national ID as travel document in EAC

• With Burundi having very few diplomatic missions across the world, it is very hard for visitors to look for a visa; this represents a significant barrier as most tourist find it inacceptable.

• Burundi citizens do not benefit from the free movement within the EAC space

• The final Document discussed through public and private partnership has been drafted and is currently at Government’s desk for adoption and signature.

Tourism Chamber of Burundi Government of Burundi

• The Tourism Chamber is pushing the Government to adopt the EAC single tourist visa.

• The Tourism Chamber is lobbying for the Government to reestablish visa issuance at arrival

The immigration services

• The Tourism Chamber is lobbying for the Government to address the issue

Burundi Tourism Chamber

• The Tourism Chamber is drafting a paper to launch a study on a national day for the Burundi sacred drums

Burundi Tourism Chamber

• The Tourism Chamber is continuously lobbying for the Government to address the issue.

Burundi Tourism Chamber

Government of Burundi

• Burundi is slowing down the possibility to get the true EAC citizenship Lack of annual national Tourism Fair

EAC air space block

• Burundi is the only EAC member state without such an important promotion event.

• Burundi is now the most expensive destination within EAC member states • Burundi has no more national or private air operator company

Government of Burundi

• That situation limits the flow of tourists to Burundi but also the possibility of a national transport incentive policy.

EAST AFRICAN TOURISM PLATFORM | www. ea-tourism-platform.org

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