Tanzania must do more to exploit its huge tourism potential: IFC

Arusha. The International Finance Corporation (IFC) says Tanzania can become a leading tourism destination in Africa with its rich natural assets.

The country is ranked fourth among the 140 countries with regard to endowment of tourism-related natural resources.

The private sector arm of the World Bank Group believes the government was on a right track in tourism and investment promotion.

“IFC is pleased to support the realisation of the government to position Tanzania as a destination of choice for tourism,” said Ms Anita Kundy, the programme lead with IFC in the country.

She said that the launching of the Royal Tour film by President Samia Suluhu Hassan was enough sign of the government’s commitment to tap the full potential of the sector.

Ms Kundy, who is in charge of IFC’s Business Building Environment Support (Bees), was speaking during a Ministerial Private Dialogue on Policy Reforms for Tourism Industry in Tanzania.

The Dialogue was organised by the IFC Country Office and the ministry of Natural Resources and Tourism and attracted all the heads of all the departments and agencies under the ministry and the industry players.

She said IFC, as a member of the World Bank Group, has worked with the private sector to support the tourism sector in Tanzania, including an investment in a hotel in Dar es Salaam.

Through the support, tourism has become a highly competitive sector of the economy being the major source of employment, tax revenue and foreign exchange earnings.

Until 2019, the sector accounted for 11.2 percent of total employment in the country, estimated to be 1.5 million employees working in various segments of the industry.

It is an important sector for women “as at least 50 percent of employees in the tourism sector are women,” she pointed out.

She lauded the government for deliberate efforts to support the tourism industry through formulation of policies and legislations and full involvement of the private sector.

The executive secretary of the Tanzania National Business Council (TNBC), Dr Godwill Wanga, said Tanzania should use its rich natural assets to attract more tourists.

These are 22 national parks, 28 game reserves, 42 game-controlled areas, four Ramsar Sites and 35 wildlife management areas (WMAs) in Tanzania.

The country is also endowed with six nature reserves, two marine parks and three natural wonders of global significance.

The assets have made Tanzania the fourth country in the world in nature and wildlife splendour “but we are far below in tourism numbers and revenues,” he explained.

Dr Wanga further observed: “This is a challenge to our tourism. Any challenge to the tourism sector will impact on the economy”.

Tourism, he said, contributed a lot to the country’s economy, including the tax revenues needed to finance the development projects, but it has potential to do much more.

However,he implored the policy makers to fully address concerns that are often raised by the private sector on multiple taxes, levies and fees often charged to the tourism services.