TANZANIA: What Taxing Tourists Means In Tanzania

The decision by the government to impose 18 per cent value added tax (VAT) on tourist services is disturbing.

While the Tanzania Tour Operators Association (Tato) believes the tax will mean visitors to the country will have to pay 25 per cent more than those going to other destinations within the region, the government maintains that it (the VAT) won't have any impact.

And much as the government has good reasons for its decision, it must be clear to all and sundry that if the VAT was a good thing, Kenya wouldn't have dropped it, having initiated it last year.

Arguing that Tanzania doesn't need a huge number of tourists since the country is only keen on quality tourism--which presupposes just a few, well spending visitors--may sound plausible, it would also mean abandoning the goal of attracting 2 million tourists by 2020 as outlined in CCM's 2015 Election Manifesto.

This is why reports that an association of tour operators based in Europe--the Syndicat des Entreprises du Tour Operating (Seto)--has written to the government asking for postponement of the new VAT, must be a reason for Tanzania to worry.

This comes just a few days after some Tato members reported that 8,000 tourists have cancelled their planned trips to this country due to the VAT.

Let us remember that Tanzania doesn't live in isolation and that the animals that visitors come to see here are also present elsewhere.

With a 17 per cent contribution to gross domestic product (GDP) and about 25 per cent contribution to foreign exchange earnings, the importance of tourism to Tanzania's economy cannot be overemphasised.

In an ever-changing global economic landscape, decisions that may have negative implications on sectors that contribute enormously to the national economy must only be made after intensive research and the government must be willing to consider other stakeholders' views.

Tanzania is a multiparty democracy by virtue of Article 3(1) and 8(1) of the Constitution (1977) and political parties were established by the Political Parties Act, 1992. Therefore, parties are legally established and must engage, not only in competitive, but also in constructive politics.

We know that political parties are always in rivalry because they propound different ideologies and approaches and compete for political power. However, the rivalry must only facilitate unity in diversity, not adversity, for the latter is merely ruinous.

Opposition parties are meant to challenge the government of the day, so that it becomes more efficient in the provision of social services and in good governance.

Unfortunately, political rivalry in Tanzania is creating a rift so much that the relationship between the ruling party and the Opposition is far from being healthy. In our opinion, we need to eradicate animosities between CCM and Ukawa in Tanzania Mainland and CCM and CUF in Zanzibar. We say this because we seem to be straying into the path of acrimonies that may ruin our beloved country.

We aren't saying the situation is irreparably bad, no; but we must admit it isn't good enough. Let us sit together, talk with each other and live in peace and harmony as one people.