Mapitio ya Mazingira ya Kibiashara katika Sekta ya Utalii

BUSINESS CLIMATE REVIEW SUSTAINABLE TOURISM SECTOR UNITED REPUBLIC OF TANZANIA

The review forms part of the United Nations Conference on Trade and Development (UNCTAD) contribution to the Swiss State Secretariat for Economic Affairs (SECO) United Nations Cluster on Trade and Productive Capacity Programme Market value chains relating to horticultural products for responsible tourism market access. This SECO Trust Fund programme is implemented by the International Labour Organisation (ILO), the International Trade Centre (ITC), UNCTAD, the United Nations Industrial Development Organisation (UNIDO) and the Tanzanian Ministry of Industry and Trade (MIT). Implementation is in close collaboration with national counterparts. The United Nations Office for Project Services (UNOPS) is the Trust Fund Manager.

In August 2014 as part of Activity 3.4 (Tourism Business Climate Review) the UNCTAD Division of Investment and Enterprise commissioned this review of the Business Climate for Sustainable Tourism in the mainland of the United Republic of Tanzania. UNCTAD is the United Nations body responsible for dealing with development issues, particularly international trade. The organisation works to provide analyses that form the basis for recommendations to economic policymakers to help them make informed decisions. To this end, a mission was conducted in September 2014, followed by verification meetings in December 2014, the findings of which are detailed in this report together with related desk research and recommendations.

The Inter-Agency Programme Document (2014) notes that the tourism sector in the United Republic of Tanzania creates many linkage opportunities for other sectors of the domestic economy, thereby generating demand for their output (output multiplier effects). Tourism is found to have high output backward linkages as well as forward linkages, which are quite evenly distributed across other sectors. This suggests that as the sector develops it provides services that can be utilized by other sectors. The Inter-Agency Programme’s linkage analysis also shows that tourism ranks second in employment linkages after agriculture. The high multiplier and linkage effects imply that tourism can add more value to the economy and become a strong catalyst for structural transformation. In order for this to happen the tourism sector must develop and grow. Under output 3 of the Joint Programme it is noted that

The Tourism Sector currently has a policy and regulatory environment that has prompted sustained concerns by the business sector. The perception is that issues are not addressed and/or misunderstood due to a lack of objective up-to-date data, statistics and studies that inform policy decision making. The new Tourism Act (2008) and its constituent regulations, though addressing key aspects of the industry, does not provide provisions for the expected enabling environment or investment-friendly regulations. A comprehensive tourism-specific review of the Business Climate, that directly addresses trade-related Responsible Tourism issues and the concerns of the private sector, is needed.

The process of arriving at a business climate review will be anchored in the Ministry of Natural Resources and Tourism’s newly established Public Private Dialogue (PPD) mechanism and logistical support will be provided to the Ministry to assist with convening the necessary platform events. Given their on-going work in the area, ILO will provide specific contributions to the Review in relation to workplace conditions. This report therefore explores the policy and regulatory environment to see how through better public-private dialogue the growth of the sustainable tourism sector (with significant forward and backward linkages and its significant employment-creation impact) might be facilitated, and lead to the removal of barriers identified by consultees.

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