Wineaster Anderson, Donath Olomi, Deogratius Mahangila,Theresia Busagara, Maria Minde & Victor Bahati

The Dialogue and Advocacy Initiatives forBusiness Environment Reforms in the Tourism

and Hospitality Sector in Tanzania

ICAESB 11TH AUGUST 2016

Content Introduction Literature Methodology Findings Conclusion & recommendation

Background

Public-PrivateDialogue

(PPD) andAdvocacy

(PPA)initiatives are

useful for:

• improvingbusinessenvironments

• increasingcompetitiveness,

• building trust andfosteringgovernancethroughcoordination,transparency andaccountability

Tourism industry in Tanzania: Key figuresInbound tourists 1,143,000 (2014)18% of GDP in Tanzania27% of Zanzibar’s GDP30% of export earnings in Tanzania80% of Zanzibar foreign earnings10.9% of total employment in TanzaniaY2014 – 1,200,000 jobs (direct, indirect and induced)500,000 direct jobs1 tourist in, 1 job (direct, indirect and induced)2 tourists in, 1 direct job

9.5% of total investmentsAverage number of employees in Medium/Largeenterprise - 51 local and 2 foreigners/400 local and 8foreigners

Each 10 jobsin

TZ 1 comesfrom tourism

BackgroundTourism is a cross cutting, multi sector activity that:

• relies heavily on conservation and use of specific natural and cultural assets,security, infrastructure, skills, etc,

• encompasses a complex array of stakeholders, interests and processes.• Constitute diverse industries - Tour Operators, Mountain Climbing, Travel

Agents, Car Hire, Hunting Safaris, Photographic Safaris, Air Charters, Horseriding and balloon safaris, Accommodation, etc

• Faces numerous & heterogeneous challenges

Unfortunately, little has been done to document the existing PPDinitiatives and recommend ways for improving their performance.

• As a result, each institution intending to promote dialogue and advocacy in thissector tends to reinvent the wheel

Background

In the light of such shortage of scientific – based research:

• more resources in terms of finances, time and human have kept on doingthe same thing, instead of adding value to what has been done.

The fact that the existing legal and policy documents such as

• National Tourism Policy (United Republic of Tanzania, 1999) is outdated;• the Tourism Master Plan (Ministry of Natural Resources and Tourism,

2002) outdated and does not consider the PPP and PPD in its formulation;• the Tourism Act (United Republic of Tanzania, 2008) is also silent about the

roles of the PPD and PPP in tourism development,

This study is timely as it intends to provide input in the reviewprocess.

ObjectiveGeneral objective:• To capture a comprehensive picture of the public-private dialogue

(PPD) initiatives for business environment reforms in the tourismand hospitality sector in Tanzania

Specific objectives, to:• identify the main challenges facing the sector• describe the main actors in the tourism value chain–both public

and private sectors• establish the PPD platforms and initiatives for business

environment reforms in the tourism and hospitality sector• Identify the success stories registered from the PPD initiatives• highlight the key success factors for the PPD initiatives for the

sector• identify the major barriers or challenges facing the PPD initiatives

in the tourism and hospitality sector• propose possible measures to strengthen the PPD initiatives

Literature Review PPD is “a structured, participatory, and inclusive

approach to policymaking” increases scope of policy formulation and success as it

involves many stakeholders in decision making PPDs vary by area of coverage, scope, leadership,

focus, time frame and participants.

An overview of PPDs -characteristics

Characteristic

Alternatives

Institutionalisation

Formal platform or informal platform

Area National, Regional or LocalScope Economic wide, sector specific or

sub-sector specificLeadership Government or private sectorFocus General orientation/many goals or

specific goalsParticipation Many actors or few actorsTime frame Permanent or time boundFacilitated Facilitated by a third party, not

facilitated by third party

Literature Review Pre-requisites for effective PPD Credible championsWider Representation Transparency Capacity Sustainability

Methodology - Design

The study adapted a descriptive-qualitativemethod• through document review and in-depth

interviews based on explorative researchdesign

The Ethnography research was considered appropriate whenexploring the nature of the dialogue and advocacy initiatives

• small number of cases• Grounded theory

Population

Tourism andhospitality sector

• both public andprivate sectors

• Northern (Arushaand Kilimanjaro)and coastal(DSM) touristcircuits

Public sector

• MNRT and itsdirectorates andsemiautonomousagencies

• National,Regional andLocalgovernmentallevels

• Others e.g. VETAHTTI, TNBC e.t.c

Private sector

• 12 PSOs underTourismConfederation ofTanzania

• PSO Members

Data collection

• open-ended questionnaire ,• face to face interviews• 29 respondents, CEOs and heads of units

Primary data

• National Tourism Policy• Integrated Tourism Master Plan: Strategy and Actions• Tourism Act• Promoting Sustainability of Biodiversity and Raising Annual Revenue• Growth to 20%• The 2014 Tourism Statistical Bulletin, Tourism Division, Dar es Salaam, Tanzania• The 2013 International Visitors’ exit survey report, March 2015. The Tanzania

Tourism sector Survey

Secondary source/document review

Findings

Respondents in the study include Both Public(7) and Private(22) Heads of associations/executive

secretaries Decision makers Participants of the dialogues

Tourism Main actors

Public sector

The Ministry of Natural Resources and Tourism and its major five divisions.

WildlifeDivision

(TANAPA,TAWIRI,NCAA &CAWM)

Antiquities(NATIONALMUSEAUM)

Policy andPlanningDivision

Forest andBeekeeping

Division(TAFORI)

TourismDivision (TTB

& NCT)

Others:TNBC,VETAHTTI, e.t.c

Privatesector

TCT, HAT,ITTA, TAOA,

TACTO,TATO,

TAHOA,TASOTA,

TTGA, THPAT

Major challenges which call for PPDinitiatives and platforms

1. Inadequate infrastructures2. Poor product development and management3. Poor marketing and linkages within local economy4. Insufficient institutional and technical capabilities5. Shortage of appropriate and specialized core and skilled

personnel6. Limited access of capital from financial institutions to support

SME’s in tourism sector7. Economic slowdown in the source markets and leakages8. Illegal activities associated with destruction of natural

resources9. Ineffective land use plans and lack of land-bank for tourism

investment10.Slow growth of domestic tourism

Main PPD platforms in Tourism sector

•Established in 2001…..•Composed of all tourismand related sectors

•Deals with Developmentand Investment issues

•Established in 2010under MNRT

•Composed of all tourismand related sectors

•Deals with challenges inthe tourism sector

•Established underTourism Act 2008

•Composed of 15members from TourismAgencies andauthorities, (Inc-2 co-opted from public)

•Aim at advising theminister of MNRT

•Established in 1992after UN deliberations

•Discusses developmentissues in tourism

•Contains at least 150members (allstakeholders in tourismand related sectors)

TourismFacilitationCommittee

TechnicalAdvisory

Committee

TanzaniaNationalBusinessCouncil

PublicPrivate

Partnership

Other Platforms

5. Quarterly PPD across aviation Industry6. Annual General Meeting7. UN- Funding Meetings8. Pre-fair & Post-fair Meetings9. Tourism & Hospitality Stakeholders Forum10.Biannual stakeholders meetings11.Cultural Tourism Program stakeholders

meetings

Success stories1. Adjustment of fees and taxes2. Initiation of Capacity Building Programs3. Improvement of Infrastructures4. Improvement of Security to Tourists and their Belongings5. Establishment of Regulatory Authority, Organizations,

Committee and Forum6. Publication of the International Marketing Strategy7. Conservation of Natural Assets8. Tourism Task Force Report9. Designed and Improved Corporate Social Responsibility

Strategies

Key Success Factors

1. Readiness of stakeholders2. Good relationship built on trust, respect and transparency3. Cooperation between stakeholders4. Time-to-time dialogues between private and public sector

actors including open discussions on some issueswhenever they occur

5. Seriousness and support of local government leaders6. Solidarity of private sector players, especially for

crosscutting issues, coupled with determination and followups

7. Holding talks with higher level officials (decision makers)directly while bypassing lower level officers

8. Capacity building-BEST-Dialogue9. Ongoing awareness of the government leaders

Major barriers facing PPD Initiatives

1. Inadequate Funding for the meetings2. Frequent change of Leaders in the public offices3. Bureaucracy in Government System and work ethics4. Inadequate Vision- Outdated National Tourism Policy 19995. Incoherent Policies, Institutions and Regulations6. Incapacity Personnel7. Public sector does not perceive the value of dialogue8. Representation Gap and misrepresentation of senior officials9. Poor implementation of Deliberations from the PPD initiatives10. Mistrust between the Private and Public Sector Actors11. Conflicting interests among Officials and between Local and

Central Government

Recommendations for improvement ofPPD

1. Promote honest discussion and deliberateefforts within and between public and privatesectors

2. Creating awareness of importance of PPDsamong tourism stakeholders

3. Capacity Building among Stakeholders tounderstand tourism problems, causes andpossible solutions through PPDs

4. Reduce Representation Gap by broadeningparticipating individuals and organisations andensuring an inclusive policy making strategy.

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Recommendations5. Improve transparency and communication

within and between private and publicsectors

6. Institutionalization of the PPD forums at alllevels national, regional, district and locallevels

7. Streamline Funding Mechanisms for PPDand Joint funding policy of the PPD and

8. Implementation of deliberations by drawing aroad map and clear execution strategies

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ConclusionBased on the key success factors registered from the existing PPDwithin and between sectors and sub-sectors:• The joint participation between the private and public sectors in

policy making is important for best policies, enhanced executionand outcomes.

• Considerable planning and investment must go into a structureddialogue process.

• It is not cost-effective if most of the PPD platforms overlap interms of subject matter, mandates, participants and their timing.

• Each PPD platform is unique and has to be tailored to localissues, institutions, and experience.

• Wider representations, credible champions and sustainablepartnerships built on trust and transparency is the engine to thesectorial development and inclusive economic growth.

• PPD and PPPs must be imbedded in the review of NationalTourism Policy, the Tourism Master Plan, and the Tourism Act of2008. 11/08/201624

Thank you

FOR LISTENINGEND

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This study was funded by BEST-Dialogue through theCentre for Policy Research & Advocacy (CPRA) at

University of Dar es Salaam Business School; to whom theauthors are very grateful. We thank all the respondents

who took the initiative and time to provide feedback to thesurvey questions.

©CPRA 2016

Acknowledgement