Tan­za­nia - Dar es Salaam

Tourism Tattler - - BUSINESS & FINANCE -

Tan­za­nia has a boom­ing econ­omy and was Africa's sec­ond fastest grow­ing coun­try in 2016 with a GDP growth of 6.9%, ac­cord­ing to the World Bank, and a fore­casted growth of 6.4% over the next five years. Tourist ar­rivals in­creased by 12.9% com­pared to 2015, as in­di­cated by the Min­is­ter of Nat­u­ral Re­sources and Tourism of Tan­za­nia. Pres­i­dent John Magu­fuli, elected in 2015, has been known to be a rig­or­ous politi­cian re­gard­ing an­ti­cor­rup­tion and anti-waste mea­sures. His force­ful lead­er­ship style be­came even more vis­i­ble in 2016: can­cel­la­tion of ma­jor cel­e­bra­tions, ban of over­seas travel for civil ser­vants, evic­tion of cor­rupt of­fi­cials and unan­nounced vis­its to var­i­ous gov­ern­ment bod­ies were just a few of his ac­tions. In ad­di­tion, the gov­ern­ment im­posed 18% VAT on ser­vices such as tour guid­ing, game driv­ing, wa­ter sa­faris, an­i­mal or bird watch­ing, park fees and ground trans­port ser­vices. While this aims to in­crease the tax base, it will make the Tan­za­nia tourism pack­age more ex­pen­sive. All of which came at a sur­prise, ex­plain­ing a slight drop in amount of rooms sold in Dar es Salaam. How­ever, in 2016 the pres­i­dent was work­ing with the pri­vate sec­tor to im­prove the coun­try's busi­ness en­vi­ron­ment. In terms of “Ease of Do­ing Busi­ness” (World Bank re­port 2017) the city has made enor­mous im­prove­ments mainly due to re­forms over the last year re­gard­ing busi­ness li­cens­ing, easy regis­tra­tion of busi­nesses, peo­ple's regis­tra­tion and land re­forms. Fur­ther­more, Eti­had Air­ways an­nounced that it has en­tered into a code­share agree­ment with Pre­ci­sion Air, Tan­za­nia's lead­ing do­mes­tic air­line and the pipe­line built by Uganda to trans­port crude oil through Tan­za­nia is ex­pected to be com­pleted by June 2020, which shows in­ter­est in the coun­try and fo­cus on a pros­per­ous fu­ture. Oc­cu­pancy lev­els in Dar es Salaam de­clined by about 6% and RevPAR de­creased by 10.5% com­pared to the year be­fore. Even though num­bers are ex­pected to drop even more in 2017, the coun­try's fu­ture looks bright as there are still large gas re­serves and a con­stant low in­fla­tion rate. Mar­riott plans to open a Four Points by Sher­a­ton and an Ele­ment by Westin in Dar es Salaam. Other ho­tels in­clud­ing the brands Rotana and City Lodge are sup­posed to open be­tween 2017 and 2020 al­to­gether adding about 1,400 keys to the mar­ket. For de­tailed anal­y­sis visit http://hvi.hvs.com/mar­ket/africa/Tan­za­nia_-_Dar_es_Salaam

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