Tanzania allocates $39mn for tourism recovery

Tanzania, a country known for its stunning landscapes and rich wildlife, allocated approximately $39.2 million for the implementation of 23 projects aimed at revitalizing its tourism sector, which has been severely impacted by the COVID-19 pandemic. The funds were part of a larger sum of $567 million approved in September by the International Monetary Fund (IMF). Wilbard George Chambulo, Chairman of the Tanzania Association of Tour Operators, expressed concerns about the allocation of funds in an interview with CNBC Africa. Chambulo highlighted that while the Tanzanian government received a substantial amount of funding, private sector players in the tourism industry have not yet benefitted from financial support. He emphasized the importance of channeling some of the funds to the private sector to help revive the struggling industry. Many private sector operators are still grappling with the aftermath of the crisis, with thousands of people losing their jobs and uncertain about their future. The chairman underlined the need for accessible loans with favorable terms to support businesses in the tourism sector. He advocated for low-interest loans structured through formal banking systems, enabling companies to reinvest in their operations and rebuild their businesses. Chambulo urged the government to consider providing loans with extended repayment periods and reduced interest rates, similar to the terms of the IMF loan, to ease the financial burden on industry players. Addressing the investment opportunities in Tanzania's tourism sector, Chambulo praised the country's vast potential for development. With one-third of its land dedicated to conservation, including national parks and game-controlled areas, Tanzania offers lucrative prospects for investors. However, he expressed concerns over impediments to investment, hinting at potential policy, legal, or tax-related issues that may be deterring investors from capitalizing on these opportunities. The COVID-19 pandemic has underscored the importance of building resilient and sustainable sectors, particularly in tourism. Chambulo stressed the need to fortify Tanzania's tourism industry, acknowledging its relatively young age compared to other regions. He highlighted the significance of fostering local tourism and diversifying business strategies to reduce dependence on international tourists. By enticing domestic and regional visitors to explore Tanzania's natural wonders, Chambulo believes that the country can cultivate a sustainable tourism market and promote conservation efforts. In conclusion, Chambulo called upon African nations to prioritize their own markets and invest in local tourism to bolster the resilience of the sector. By nurturing a sense of appreciation for the continent's natural beauty among its own people, Africa can safeguard its environmental treasures and foster economic growth in the tourism industry. The chairman's impassioned plea reflects the urgent need for government support and strategic initiatives to rejuvenate Tanzania's tourism sector and pave the way for a brighter future.