TALA PRESENTATION

TO MINISTRY OF NATURAL

RESOURCES & TOURISM

Hotels Association of Tanzania

LICENCES

What is MNRT’s definition/interpretation of

“Sector License”?

What is MNRT’s definition/interpretation of

“Business License”?

What are the differences in administering

the two licenses?

LICENCES

• “Business Licenses” costs are NOT differentiated

between foreign or local?

Why should TALA a ‘Sector License’ be of a discriminatory in

nature?

• Other Sector Licenses in Tanzania e.g. Banking License

are all the same for Foreign Banks and Local Banks –

TZS 10Million one time fee

• How does MNRT justify the quantum of its “Sector

License” - $2,000 (local) and $5,000 (foreign) a year?

INCONSISTENCY OF TALA

• Tourism Act 2008 stipulates TALA Regulation as quantum

of its “Sector License” - $2,000 (local) and $5,000

(foreign) a year?

When did they change? Many HAT Members pay varying TALA Fees

(regardless of it is a local or Foreign investor) - $1,000, $1,500, $2,000,

$2,500 and $5,000

I have two members within HAT Membership who are both local

incorporated companies in TZ - One pays $2,000 TALA and the

other pays $5,000? WHY?!?

If they have been changed, when was a notice given to Stakeholders

and when was it officially gazetted? Have the above rates in fact

been gazetted?

INCONSISTENCY OF TALA

If they have NOT been gazetted, MNRT above rates

have been/are being ‘Illegally’ collected due to lack of

gazettement.

Do you AGREE or DISAGREE?

TALA DISCRIMINATORY

Notwithstanding the consistent misinterpretation of the

TALA Regulations (since 2010):

PART V (Licensing of Tourism Facilities and Activities)

Section 21 (1) it states that:-

“Any person who owns, conducts or operates a tourism facility or

activity and who provides or assists in providing services in a

tourism facility or activity, shall not own or operate such a facility

or activity or provide or assist in providing such a service, as the

case may be unless he holds a license for that purpose issued by

the Board”.

It is obvious under this provision that it is the owner that is

licensed and not a facility. And an owner can be a natural

person or corporate entity.

TALA DISCRIMINATORY

In reality however, each and every

accommodation facility owned by the same

natural person and/or entity is made to pay

TALA per facility.

Do ‘Tour Operator’s pay TALA for each and

every vehicle they own for their business? If

NOT… WHY?????

IMPACT OF TALA

Does MNRT know and/or understand the impact

of the annual sum of TALA paid by existing

investors?

Certain HAT Members pay an annual

amount of $45,000 for TALA. Does MNRT

know this? Does MNRT see it as “OKAY”

for a ‘Sector License?

TALA & TOURISM REGULATIONS

• Tourism Private Sector is aware of the initial Tourism

Regulation ‘Draft’ as we were invited (with sincere

appreciation) to review before it was made final and

signed by the Minister in late 2014. Why was Private

Sector NOT Shown the final draft as agreed upon and

signed?

• Important to also note that these Tourism Regulations

have supposedly been signed and waiting for gazettment

– going on a year now, HOWEVER, MNRT refuses to

share with Private Sector till today? Certainly NOT

from lack of requests to be sent to Private Sector.

IMPACT OF TALA • TALA was discussed at length as the ‘Draft’

introduced for additional fees to be paid for Tourism

activity – (SEE SCHEDULE BELOW) This schedule

was NOT agreed upon and changed with all parties

present signing that reviewed and discussed

changes.

• Can MNRT confirm that the changes agreed upon of

the above schedule incorporated in the FINAL Tourism

Regulation?

• Important to note and previously showcased to MNRT

during the review that the existing member that pay

$45,000 in TALA just for the facilities will under the above

schedule be paying over $60,000/year in TALA.

TOURISM REGULATION SCHEDULE

INEFFICIENCY & INEFFECTIVENESS

OF TALA PROCESS

TALA application process is flawed

Members apply when TALA Application Process Notice is given

in December of each year, however the license is not issued

until mid-year of the following year.

Members consistently have to engage with authorities when

demands and spot checks are made to show TALA Licenses but due

to the delay by MNRT to issue the actual certificates they are

held captive and businesses are disrupted.

IMPACT OF TALA ON TOURISM

INVESTMENT

The Government and H.E. John P. Magufuli is encouraging

and calling for existing and new investors to invest in the

country – especially local investors.

The myriad of International Organizations – World Bank,

UNDP, SECO, ILO and more, have ongoing initiatives to

grow Tourism in Southern Tanzania and diversification

initiatives for Tanzania Tourism Products and Services …

Does MNRT not see the negative impact of TALA of the

above initiatives (including the Multiplicity of TALA to

hoteliers)?

IMPACT OF TALA ON TOURISM

INVESTMENT

• If you take into consideration the existing TALA fees and

adding the new Tourism Regulations ‘Activity Fees’ -

Does MNRT honestly think investors (existing and

potential) will invest more into Tanzania?

• To add to the above… What is MNRT (within its extensive

and capable capacity) doing to help its industry in

alleviating the burden it is putting on the Tourism

investors with TALA and to name a few others:

• Multiplicity of taxes, levies and fees to our Tourism Investors (being

addressed under BRN);

• Rock bottom Investors Climate (being addressed under BRN);

• Rock bottom Business Environment (being addressed under BRN);

CONCLUSION

“What would Magufuli do?”

• TALA as a license needs to be reviewed and

improved significantly to enhance the value to

Stakeholders;

• MNRT needs to play a significant role in

‘facilitating’ Tourism investors to grow

• MNRT needs to efficiently and effectively engage

Private Sector in this growth process.