tala presentation to ministry of natural …dec 18, 2015 · inconsistency of tala •tourism act...
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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.
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