PRESENTATION CONTENTS

1. TANZANIA ASSOCIATION OF TOUR OPERATORS (TATO)BRIEFPRESENTATION ON FIELD EXPERIENCE FOR SADC- BY ALEXANDER LEMUNGE (TATO REPRESENTATIVE)JOHANNESBURG,NOVEMBER, 2013.

2. PRESENTATION CONTENTS • Tanzania Association of Tour Operators brief ( TATO) • Global Tourism Sector Importance • Importance of Tourism Sector in SADC Countries   • Challenges of investment and operation in the Tourism Industry in SADC • Specific Opportunities/Challenges

3. TANZANIA ASOCIATION OF TOUR OPERATORS (TATO) • Was established in 1983 • Membership 315 members. • Aims to provide a link in tourism industry (linking members with the Government and its institutions in matters pertaining to the formulation of tourism policy, plans and development programmes.

4. Tanzania Association of Tour Operators (TATO) • TATO aims to establish and maintain high quality and standards amongst its members and other tourism intermediaries, such as hotels, reserved areas, airlines and marine transport. • TATO aims to present the interests of its members in all spheres which entail collective representation.

5. TATO Projects • Karibu Travel and Tourism Fair: The second biggest tourism fair in Africa held in Arusha every first week of June. (Marketing platform for members) • Twiga Times: Issued three times a year magazine • provide tourism information to members and non- members

6. Global Tourism Sector Importance • Travel and Tourism is one of the largest and most dynamic industries in today’s global economy. • It contributes 9% to the global GDP and provides 8% of global employment. • Tourism contributes 30% of world export services – 6% of overall export of goods and services. (UNWTO 2013)

7. Global Tourism Sector Importance • According to UNWTO (2013), tourism accounts for 45% of service exports in LDCs. • In 2009, emerging economies received 410 million international tourist arrivals, a 47% share of the World’s total, and • US $ 306 billion in international tourism receipts equaling 36% of the total global tourism share.

8. Global Tourism Sector Importance • Analysis of data from six developing countries, the British Department for International Development reports that • tourism has been found to be more labour intensive than non-agricultural activities, particularly manufacturing, although less labour intensive than agriculture.

9. Global Tourism Sector Importance • Most of the new jobs in developing countries are created by the tourism sector. • In this regard, tourism is one of the largest employment sectors in most countries and a fast entry vehicle into the workforce for young people and women in urban and rural economies.(World Economic Forum 2009)

10. Global Tourism Sector Importance • Service industry includes transport services such as airlines, cruise ships and taxi cabs, • Hospitality service such as accommodation including hotels and restaurants, and • entertainment avenues such as amusement parks, shopping malls, casinos, music venues and theatres.

11. Importance of Tourism Sector in SADC Countries • Significant source of income • Quality jobs for hundreds of thousands • Potential of many more jobs • Larger employer of women • Linkages to the rest of the economy • Attracts investment (domestic and foreign) • Protects the environment • Preserves the culture

12. CHALLENGES FOR TOURISM INVESTMENT IN SADC • Legal & Regulatory Framework (Policies, Regulations, etc) • Administration of Tourism Licenses, Levies, Fees, etc • Safety and Security • Infrastructure (both ground and soft) • Promotion and Product Development • Skills & Human Capital Development • Tracking of Tourism Information & Data

13. SPECIFIC CHALLENGES/OPPORTUNITIES • The fact that Tour Operators have to PRE PAY DEPOSITS in advance for things like Gorilla Permits in Uganda , and camp fees etc in TZ , and camp lease fees in Zimbabwe , often as much as 2 years ahead , thus tying up cash flow which could be used to grow the business etc . Deposits amounts should be LOWERED and conditions made more user friendly to the Operators

14. SPECIFIC CHALLENGES/OPPORTUNITIES • Illegal operators .. while SADC licensed operators are not allowed to operate in the other SADC countries , any operator with a UK / GERMAN / SA etc registered vehicles is allowed into ALL SADC parks with no control over vehicles / guides etc . this is NOT the case in South Africa and NAMIBIA …where they are NOT allowed to operate.

15. SPECIFIC CHALLENGES/OPPORTUNITIES • Citizen rates: While a few countries allow discounted rates for SADC citizens into their parks , not all do …should have across the board discounts. • Vehicles/ capital goods: Specially modified vehicles for safari and tourism use , should be duty free ….and , not only NEW vehicles , second hand too.

16. SPECIFIC CHALLENGES/OPPORTUNITIES • Unpredictable taxes: The proposed introduction of VAT on services previously exempt is just pushing some countries out of the affordable price range and , not giving operators enough lead time to build these increases into their sales price.

17. SPECIFIC CHALLENGES/OPPORTUNITIES • Bureaucracy: we need people in government who have actually BEEN in the tourism business …not bureaucrats . • International Marketing: It is our feeling that tax incentives etc should be given to local tour operators for international marketing etc

18. Thank you for your time and attention