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Essay Example on Tourism Destination Economics - Tanzania Memo

7 pages
1656 words
Sewanee University of the South
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It is evident from the report, Tanzania's Tourism Futures; Harnessing Natural Assets that the country is operating in a competitive environment in matters regarding wildlife tourism. Despite the fact that Tanzania is among those countries that have reached an enviable position as a high-value low-density (HVLD) destination, the HVLD approach is not likely to be successful at all the Tanzanian destinations. Because of this, the economic stability of the country is expected to be in question. In fact, tourism is a significant financial stimulant thus any decline in revenue received from travel affects the exchange rates directly. Therefore, the HVLD status is what makes the tax to efficiently flow because the High-value visitors are rarely affected by the global economic situation while the low-value visitors provides an authentic experience. However, the HVLD is not likely to be smooth because of enormous competition as well as lack of uniqueness in tourist for the competing countries have the same products like Tanzania. According to economists, these aspects put the future Tanzanian economy in question in respect to tourism.

In my view, the research conducted by the World Bank economist in conjunction with the Ministry in charge of Natural Resources and Tourism (MNRT), Tanzania National Park Authority (TANAPA), Vice president's Office, president planning commission amongst other groups such as Tanzania Confederation of Tourism is indeed sound. On subjecting this research to individual judgment that all evolve around the intellectual content in the drafted report, my standpoint is that it is significantly supported by logic. The study was conducted evenly in both the northern circuit as well as the southern circuit concerning tourism diversity from which micro and macroeconomists involved contributed to the findings in the report. From the description tabled, it is clear that there was a very high-level research that was engineered by several stakeholders. It's intuition and achievement is makes it qualify to have a logical support not only to the government but also globally interested stakeholders in tourism. Taking into consideration, facts such as the research covered a large area within the country. Comparing different data collected over the years and coming up with the appropriate conclusions from the comparisons it is clearer that the report is based on sound research.

In a general opinion, Tanzania requires to come up with strategies that can maximize the revenue generated from tourism and not just increase the tourist numbers. It is recommendable that the government should strive to achieve an appropriate link between the local economy and tourism. It will allow the rural population that is poor to fully participate in the exercise. It is evident that such a community can have a significant impact on the society, economically by the data on benefit-sharing policies summarized in box 5.1. In this aspect of the building of local capacity leads to diversification of tourism opportunities and promotes the partnership. It is from this perspective that issues that threaten the success, as well as the sustainability of Wildlife Management Authorities (WMA), can be addressed. They include; lack of transparency and accountability, incomplete devolution of tourism responsibilities, cost of establishing and running the authorities is very high while the payments that are supposed to be made by the government are unpredictable, low diversity of revenue streams among other aspects can be easily solved if the government embraces this recommendation. Therefore, in this perspective, because the local economy cannot support tourism without the capacity to produce goods and services, the government should be in a position of providing commercial incentives to enable local operators to have strong links to be commercially profitable.

On the other hand, upholding the process of maintaining as well as strengthening the HVLD segment is another recommendation that can adequately contribute to economic sustainability. Despite the fact that HVLD is a segment that can be easily lost if products fail to meet the threshold when standardized it attracts it attracts customers globally. Therefore, preserving the jewel in the crown of tourism such as what is described in the report that Serengeti undergoes. It makes it be the backbone of the HVLD segment in Tanzania. However, for HVLD to prosper, the product on offer must at all times be rare, exclusive, and unique. For instance; Serengeti significantly helps Tanzania to attain its HVLD status because of its functioning savanna wilderness ecosystem. However, economists have come out clearly in the report to show that because of various risks that Serengeti has been exposed to in the recent past; they are undermining its potential earnings that if translated to the economy it will have a huge effect as well.

Additionally, the HVLD destination can as well determine the economic destiny. Looking at how the report addresses the litany pressures on the Northern Circuit, features such as intrusive development and overbuilding undermine the value of tourism products that occur in the Maasai Mara reserve. At the same time, different policies that surround the ecosystem especially those that hinder the carrying capacity also are said to be eroding the earnings potential. The products in this circuit cannot stand to attract the desired HDLV market segment. Because its uniqueness occurs once in a while making it less competitive. In fact, HVLD is what will make high-net-worth individuals for taking part entirely contribution in the tourism sector. In fact, it is the reason as to why the Northern circuit is a primary focus of tourism compared to the southern loop that is evident from the HVLD status of these two regions. To some extent the recommendations may imply that, at some point the tourism regions with low HVLD status have been neglected over the years. Because such low economical areas do not have a significant contribution in the generation of revenues.

The diversity of products by merely differentiating tourism by location, product as well as the market segment will enable the county to overcome unemployment and reduce poverty by building both tourism circuits. It can be done by focusing on low yielding tourist attractions such as the southern circuit that requires to be given a new brand and a sense of publicity, addressing the challenges of accessibility as well as water thus enabling it develop a market that can as well contribute to government revenue ad solving monitor problems such as employment in the society. In this recommendation, a focus is hugely on the Southern circuit that is not efficiently productive by giving conditions that if achieved it can offer competitive tourism. Addressing the water problem by looking at issues such as water access and water control by ensuring that both animals and human being have access to water for individual uses. It can only happen by coming up with regulations. Different approaches that can be put in to practice such as coming up with water quantity controls, water pricing segments and paying for water used to facilitate efficient use of the water present. Above all, enhancing the capacities of administrations and institutions to create an appropriate monitoring system.Other preconditions that should be met to promote or instead bring the southern circuit into the map of revenue generation as per the report include; access and costs issues, branding and publication and development of marketable products. Therefore, adequate transportation network is supposed to be catered for in tourism. If the infrastructure is weak, then the probability that the cost to be incurred will be high and even to a particular extent time-consuming. The southern circuit should be branded concerning the uniqueness. It will enable or expand the opportunities for marketing that promotes chances of coming up with useful packages of tourist products. Such products must be marketable to have space in the global competition. It is evident that beach tourism is the most expensive among other segments because of its price as well as its experience.

The private sector, as well as the civil society, stands at a better position to question the commandments made in the report. Because issues that significantly affect the private investors such as taxes and levies have not been catered in the recommendations. All worsen the business climate by m, making it unpredictable and more uncertain in policies drafted regarding tourism. Thus, with the minimal inclusion of the private investors in travel, it makes it hard for Tanzania to compete globally with established countries effectively. Nevertheless, the minister still stands an excellent chance to handle such worries by merely encouraging the private investors and the civil society that policies regarding various aspects such as predictability and uncertainty can be amended, and even documents but will be varying from time to time. Most importantly, assuring members of that there is a coordination that is crucial required between the private and the public sector to create conducive tourism operations by coming with mutual agreements and principles of delivery.

The minister can request the government to promote community conservancies where private investors can be given an opportunity to manage community reserved land as an individual tourist attraction. The economy of Tanzania significantly relies on tourism for revenues, employment, as well as external balance. Therefore, the full involvement of the private and the civil society in this will make the tourism sector stronger and competitive for it will embrace the required contributions. Community conservancies will act as an excellent opportunity for the private investors to help in the diversification of the tourism products. Because the government resources are limited in a manner that they cannot sustain the high levels of unemployment alone, the cooperation with such private investors will be the only practical method of ensuring that the tourism industry develops. Without any recommendation given in respect the involvement of the private sector as well as the civil society and on various policies the research that has been provided in the form of the report may be taken not to have considered all aspect for tourism progression. Therefore, the minster's response can evidently show that an achievement is a process that requires time and policies.

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