AICC loses Sh1.8bn annually after key tenants move out
What you need to know:
- More than a third of the 23,000 square metres space at the state-owned facility is empty following the recent disbanding of the International Criminal Tribunal for Rwanda (ICTR).
Arusha. The Arusha International Conference Centre (AICC) is losing about Sh1.8 billion a year in revenue after some key tenants moved out of the facility.
More than a third of the 23,000 square metres space at the state-owned facility is empty following the recent disbanding of the International Criminal Tribunal for Rwanda (ICTR).
Some rooms at the landmark office block have also been left vacant after another key tenant since the 1990s, the East African Community (EAC), moved into its new headquarters. “Filling vacant office space of 8,500 square metres left by ICTR, EAC and other tenants is among our challenges,” said a report presented to a recent annual general meeting.
The report, obtained by The Citizen, did not mention other tenants who have pulled out but said the loss of revenue amounting to Sh1.8 billion per annum was worrisome.
The UN Tribunal, which had operated from the premises after its creation in the mid 1990s, used to be the major tenant occupying two of the three blocks. It closed shop in December 2015. EAC constructed and moved into its headquarters in November 2012 although some units and departments of the regional body still operated from the adjacent convention centre.
Due to dropping number of occupied rooms, AICC recorded a 1.5 per cent decrease in annual revenue in the year ending June 30 last year compared to the previous fiscal year.
During the period (2016/2017), the centre earned Sh14.4 billion compared to Sh14.6 billion and Sh17.3 billion generated during the 2015/2016 and 2014/2015 fiscal years respectively.
“This decrease in revenue is mainly due to decline in office income and conferences which were mainly related to vacated offices by UN-ICTR which completed its activities,” the report said.
The decline in revenue earnings has also been attributed to the decreasing number of the conferences as well as the functional currency fluctuation.
AICC, which also owns the Julius Nyerere International Convention Centre in Dar es Salaam, hosted a total of 354 events during 2016/2017 at the two centres, attracting 66,732 delegates.
Besides offices rented at its headquarter complex, the centre managed 627 rented housing units, 48 apartments, a 32-bed hospital in Arusha and prime undeveloped land in the city.
