LOVE LETTERS TO TANZANIA: Pricing Tanzania: Who gets the lion’s share?

That I love Tanzania and miss its charms when working overseas is no secret.  If my framed picture of the Ngorongoro lioness, the Maasai jewellery which complements my business attire, or the giraffe-shaped pencil are not clues enough, my screensaver slide-show makes it clear: I have developed an obsession with Tanzania’s landscapes, beautiful animals and rich cultures.

Colleagues peeping over my shoulder often ask where I photographed the dramatic scenery and amazing wildlife.  Recently, someone wanted travel tips.  Struggling to recall details, I eagerly collected travel agents’ glossy brochures featuring Tanzania’s magnificent sights.

I was shocked:  AUS$15,000 for a popular safari - excluding air fares! Who spends over 24 million TZS on a four-day trip?  Surprisingly, I learnt, tourists expect such prices, rating Serengeti wildlife viewing a once-in-a-lifetime indulgence worth saving up for.

My own safari had cost a fraction of this.  My Tanzanian-born travel companion’s relative’s brother’s friend had arranged the trip in Arusha.  It was great value compared to other world famous destinations.  On reflection, having the expert guide and even the vehicle to ourselves, we were lucky.

What others happily pay is interesting though.  Years ago, I studied Business Management and Economics.  Despite my real passion lying elsewhere, I never regretted the career detour. Amongst other benefits, an understanding of how companies lure consumers saves me from becoming a victim of cunning advertising.

Travel agents marketing Tanzania use “premium pricing”.  Analysing their customers’ psychology, the price tag they consequently attach reflects that high prices denote a superior product in this market segment, the same way luxury goods like Rolex and Mercedes Benz signal high quality to high-end customers.  The elite buy status by conspicuously consuming luxuries which not everyone can afford – paying astounding prices, if clever sales agents realise the aspirational image of a product.  “Limited editions” appeal to customers who pay extra to feel privileged.  Naturally, the exclusivity of “one-off” goods means even more outrageous earning potential.  You already see where this is going: Saadani and Serengeti are limited editions! Kilimanjaro and Ngorongoro are unique.

When I bought a “Tanzania Safari”, premium pricing was only applied by foreign operators for accommodation and vehicle.  My non-resident entrance fee to Serengeti National Park was ridiculously low.  Considering overseas visitors’ purchasing power and their acceptance of premium prices elsewhere, the Ministry of Natural Resources and Tourism charged at the “bargain basement” end of the spectrum – for unique products like the Ngorongoro Crater’s “million dollar views”.  Paradoxically, the very assets which motivate tourists to spend thousands of dollars and cross the world are the cheapest part of the safari!

Although there are many zoos, San Diego Zoo in the U.S. charges $50. Unique Serengeti costs $60. I feel ashamed having paid so little to Tanzania’s authorities, much more to tourism operators, unintentionally short-changing Tanzanians.  Guilt-ridden, I researched further: Even Serengeti landing fees for foreign aircraft are cheap compared to what private individuals and companies pay overseas, especially near unique natural wonders.  Shouldn’t visitors who can afford to hire planes pay more, also considering the environmental impact?

Around 2,000 “super-rich” visit Tanzania annually, according to New World Wealth, spending outrageous sums on luxury experiences.  This should be good news for Tanzania, but the lion’s share goes overseas.  Unaware of just how much profit is made, Tanzanians accept unfair deals and get a small piece of the tourism cake. 

Despite enormous earning potential in Tanzania, licence fees for non-resident tourism operators are also low, given how much they charge their customers.  They can afford to contribute more to local employment and infrastructure maintenance.

The fees neither reflect the intrinsic value of Tanzania’s parks nor the cost of keeping poaching at bay, necessitated by an insatiable appetite for rhino horn and ivory overseas.  Tanzania needs money to support its entrepreneurs.  Extra revenue could enable loans to locals wanting to establish camps and lodges or diversify and market tourism products from which their communities benefit.

The author is a freelance writer, working in Australia as a program leader in education and expert teacher