KENYA WINS AS TANZANIA IMPOSES TAXES ON TOUR OPERATIONS.

ORIGINALLY WRITTEN BY :
SUZAN KORUSAWA \ THE AUSTRALIAN.

During the West African ebola epidemic, which peaked in 2014, legions of travellers, spooked by the disease’s potential spread, cancelled holidays, particularly to East Africa, even though that popular safari region was far removed from the continent’s affected countries.

The safari industry has had to fight hard to re-establish consumer confidence but a swag of new lodges, major refurbishments and revitalised products, such as walking safaris and cruises on the Zambezi and Chobe rivers, indicate that bookings are on the rise.

Just when a return to financially healthy times appears imminent, key safari destination Tanzania is suffering due to rising costs for tourists. Billing itself as the largest online marketplace for African safari tours, Safaribookings.com claims the introduction 15 months ago of an 18 per cent value-added tax on previously exempt tourism services has caused operators in Tanzania to lose business. The VAT applies to ground transport and fees for guiding, camping and national park entry.

Jeroen Beekwilder of Safaribookings.com says “during the same period, Kenyan operators received a significant increase in booking requests” and there is an expectation of long-term problems for Tanzania’s wildlife tourism industry as visitors seek cheaper experiences.

Kenya Association of Tour Operators chief executive Fred Kaigua says the VAT impost in Tanzania is just one factor helping his nation’s tourism resurgence, citing other elements such as improved security in the wake of terrorist bombings in Nairobi, a government-led tourism recovery strategy, and the waiving of VAT on tours in Kenya.

Julie McIntosh, founder and ­director of Sydney-based Classic Safari Company, says: “Our business has seen a big rise in Africa generally and we are still sending a steady stream of clients to Tanzania. The average person would not be aware of any price increases as requests are usually a one-off (but) Tanzania is pricey because of the logistics involved in getting around, such as charter flights, and park and conservation fees make it more costly than Kenya, which ­offers great value and arguably more cultural diversity.”

Abercrombie & Kent Africa product manager John Saporito says: “Our safari bookings to Tanzania have remained strong and stable but there has been a noticeable increase in business to Kenya, which I attribute in part to the Tanzania VAT hike, but also the greater level of political stability (in Kenya). Despite what was predicted to be a disaster for the safari industry, so far the rise in Tanzania’s VAT has not had a significant effect on luxury safari operators.”

Perth-based Trevor Fernandes of Nairobi-headquartered family business Wildlife Safari is sceptical of the bleak findings of Safaribookings.com. He says his company’s Tanzania sales are up and there’s no diminishing of interest in visiting its headline ­attractions, such as Mount Kilimanjaro and Ngorongoro Crater Conservation Area. Other specialist operators point out the inextricable links between Tanzania and Kenya for tourists during the annual great migration when millions of wildebeest, accompanied by other herd species, move across national borders between the Masai Mara and the Serengeti ­National Park.

Also potentially affecting Tanzania’s tourism revenue, Beekwilder reports that operators in Uganda are citing an increase of more than 16 per cent in booking requests. But the industry widely believes this rise correlates with the decision last May by the Development Board of neighbour Rwanda to raise the cost of a “Gorilla Permit” from $US750 ($972) to $US1500 a person.

Aimed at boosting funds to sustain and strengthen conservation ­efforts and contribute more funds to communities living around the Volcanoes National Park, the impost in Rwanda has been a boon for rival trekking operators in Uganda, which offers comparable permits in Bwindi and Mgahinga national parks from $US450 to $US600 a person, depending on the season.

Intrepid Travel, as one example, will switch from Rwanda to Uganda for its gorilla experiences next year. Others are sure to follow suit as savvy tourists do their sums and seek the best-value African destinations.

SOURCE:

theaustralian.com.au