Govt urged to provide incentives for investment

26Sep 2016
Henry Mwangonde
The Guardian
Govt urged to provide incentives for investment

THE government has been called upon to provide incentives to local investors in order to popularise the country’s tourism attractions and increase the number of tourists visiting the country hence increase government’s revenue.


One of the stakeholders in tourism industry, Erick Mashauri told journalists over the weekend that there were many opportunities that if grabbed could market the country’s tourist attractions worldwide.

“Many of the countries which are doing well in tourism industry are providing some incentives especially on issues that involve participation in international tourism exhibitions,” said Mashauri, a Chief Executive Officer (CEO) of Travel Partner Company.

He added that there were many tourist attractions in the country which had not been visited due to lack of proper marketing strategies.

According to him tourism if well marketed could make the country support its budget using internal revenue.

However he expressed his concern over the newly introduced VAT charges on tourism, saying it would make the tourism industry in Tanzania a hard hit, turning the destination into an uncompetitive destination.

The tour operators have mentioned the elimination of tax exceptions on payments regarding aircraft lease rentals as well as the scrapping of VAT exemption on the tourism services as damaging to the industry on fears that prospective tourists could cancel their travels to the country.

Currently the Tourism Act of 2008 stipulates that TALA charges US dollars 2,000 (about 24m/-) as sector licence for a local operator while it is US dollars 5,000 for foreigners (about 10.5 million/)-annualy.