Tourism, air transport must go hand in hand

One of the most striking aspects in CCM’s 2015-2020 manifesto is the ruling party’s desire to see Tanzania attract two million tourists come 2020, up from the current 1.1 million.

According to the ruling party’s election blueprint, an additional 897,974 will come here because the fifth phase administration will engage the private sector in creating infrastructure that is conducive to visitors.

Unfortunately, nothing seems to be developing vis-a-vis international flights and the tourism agenda, leaving some pundits wondering just how serious the pledge is.

Industry players say Tanzania has one of the most expensive landing rates for international flights in the region. This amounts to an own goal in our attempt to elevate the role of tourism in the economy. With over 100 different taxes, moreover, there is no way the aviation sector can flourish to the extent that it brings Tanzania its desired tourist numbers.

One thing that the government needs to understand is that countries support their airlines not because they want to reap direct dividends from aviation proceeds but rather because they want the airlines to ferry tourists to their countries. Morocco, South Africa and Egypt are the top recipients of tourists in Africa. They treat their airlines softly-softly, like we do with babies.

Morocco receives an average of 10 million tourists each year while South Africa and Egypt receive about eight million each. The three countries always go the extra mile to bail out their airlines whenever they face financial challenges.

In 2011, Morocco’s government offered Royal Air Maroc $193.3 million to shore up the airline’s finances, which had been hit by growing competition, lower sales and higher fuel prices.

International airlines

The Egyptian government has a tendency to subsidise international airlines that fly to its tourism hotspots of Sharm el Sheikh and Hurghada airports and on to all other tourism destinations.

Since 2006, South Africa has issued over $1.2 billion in government guarantees to South African Airways, with the latest being the roughly $500 million that was approved in May this year.

Though insecurity has hit Kenya’s tourism during the past few years, the government there has not given up on injecting its cash into the loss-making national carrier, with the latest cash injection being the $42 million that was approved a few weeks ago.

What these figures tell us is that Morocco, South Africa, Egypt and Kenya are aware that developing tourism is virtually impossible without a serious national carrier that may be state-owned or privately-owned but with government interests.

At a time when tourism has overtaken gold exports to become Tanzania’s top foreign exchange earner (it earned Tanzania $2.2 billion during the year to June 2015 as compared to $1.2 billion earned from gold exports), Tanzania would be well advised to invest in the airline industry if the goal of reaping more benefits from tourism are to be attained.

This can be achieved by reviving the ailing Air Tanzania or making the business environment more conducive to existing and aspiring investors. It is time the government seriously reflected on why brilliant entrepreneurs like Mohamed Dewji, Rostam Aziz, Said Salim Bakhresa and Reginald Mengi do not give a thought to injecting their cash in the sector – or why Michael Shirima appears to be reluctant to pursue the Precision Air international dream. With political will, Tanzania’s world-class tourism sites can change the country’s economic fortunes.