Parliament tells government to replenish tourism with cash

Dar es Salaam. The parliament has directed the government to boost funding allotted for the execution of development projects so that the ministry of Natural Resources and Tourism and its institutions can complete a projected number of projects by the end of the fiscal year 2023/24.

Parliament also instructed the government to establish the Tourism Development Fund (TDF) and immediately halt the establishment of the escrow account in the tourism sector to prevent misuse of public funds and unaccountable utilisation.

The August House also directed the government to assist the National Housing Corporation (NHC) in realising its plan to waive value-added tax (VAT) on houses sold below Sh100 million instead of Sh50 million.

The Parliamentary Committee for Land, Natural Resources and Tourism issued the directives in Parliament yesterday when tabling its report for activities executed in 2023.

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Tabling the recommendations, the committee chairperson, Mr Timotheo Mnzava, said Parliament should increase its speed to disburse funds to accelerate the implementation of development projects from the present 30 percent to 100 percent by the end of the 2023/24 financial year.

The move will significantly contribute to the country’s economic growth through the tourism sector, according to him.

“Reaching December 2023, the ministry of Natural Resources and its respective institutions have received Sh30.2 billion, which is equal to 17.7 percent of the total funds approved by Parliament,” he said.

“Development projects undertaken by the Ministry of Natural Resources and Tourism and its institutions include rehabilitation of infrastructure in reserved areas that are tourists’ attractions,” he added. He said the state of infrastructure in reserved areas, including national parks, the Ngorongoro Conservation Area (NCA), and several others, could fail to cope with the ongoing increase in the number of tourists arriving in the country.

Mr Mnzava said there was a need for the ministry and respective institutions to be disbursed with all the allocated funds for the implementation of development projects as approved by Parliament.

Regarding TDF, he said the fund will receive a one percent contribution from the export value attracted by the country through tourism activities.

“This will enable the government to implement its strategies to advertise the country’s tourism under the Tanzania Tourism Board, therefore increasing the number of tourists entering the country,” he said.

Furthermore, Mr Mnzava said there was no dispute related to the distribution of funds between the Treasury, the Ministry of Natural Resources and Tourism and its respective institutions to support the establishment of the escrow account.

“Escrow account establishment will lead to misuse of public funds, therefore preventing the Controller and Auditor General from conducting their audits under normal procedures. Therefore, Parliament is directing the government to suspend the establishment of the escrow account,” said Mr Mnzava.

Debating the committee report, Kawe Constituency lawmaker Josephat Gwajima said the land sector is a sleeping giant that can significantly contribute to the country’s economic growth, especially in places with survey land.

“Once land is surveyed, tax collection becomes easy. However, the sector’s growth is largely prevented by authorities’ failure to survey the land, which could also prevent unnecessary disputes,” he said.

Mlimba Constituency lawmaker Godwin Kunambi said the land sector bridges citizens to other sectors, especially those with title deeds.

“Those possessing no title deeds cannot use their land as collateral, therefore being denied other benefits, including loans from financial institutions,” he said.

For her part, Chadema Special Seats lawmaker Hawa Mwaifunga called on the government to increase its budget for land surveys for the benefit of citizens and the country in general.