Tour operators rejecting local currency use, on unfair terms

By Guardian Correspondent , The Guardian
Published at 06:00 AM Jul 02 2024
Natural Resources and Tourism minister Angellah Kairuki
Photo: File
Natural Resources and Tourism minister Angellah Kairuki

TOUR operators in the northern regions have rejected regulatory changes where all payments are required to be conducted in Tanzanian shillings.

 Fransisca Masika, the communication manager for the Tanzania Association Tour Operators (TATO) said that demanding that all payments be made in the local currency is costly.

“Today when we went into the system to pay for permits, we found that the exchange rate was too high,’ he said, pointing out at the Ngorongoro Conservation Area Authority (NCAA) the going dollar rate was 3,000/- and at the Tanzania National Parks (TANAPA) the rate was quoted at 2,715/-.

TATO and other stakeholders took the position that there is need for further discussion on the matter, as otherwise the travel agents will be compelled to stop offering transport services if their demands are ignored, she stated.

In separate interviews, operators said if the responsible ministries do not listen to them, they will stop offering services for vehicles that carry tourists.

“During our discussions we have reached an agreement that we should cease some services including taking tourists to various national parks,’ she said, asserting that the reason is that they can’t afford paying at those rates.

As the stakeholders were engaged in discussions, the Natural Resources and Tourism minister Angellah Kairuki phoned, affirming that the ministry was going to issue a directive on the exchange rate. The government is there to protect the sector, she had affirmed.

The official said that someone who changes $100,000 with the two authorised regulatory points takes about 40m/- “which is a huge amount.”

Tourism stakeholders are not opposed to the use of the local currency “but they are waiting to be given details where the sector was heading to,” she further asserted.

Sanjey Pandit, a stakeholder in tourism sector, said they want the government to recognize the contribution of the stakeholders by making changes while involving them.

“On such things, why don't we sit and agree early before the decision is made, to avoid getting into unnecessary conflicts since we have the goal of promoting and increasing the national income," he demanded.

Samuel Diah, another stakeholder, said they are united as members of the entire sector after this move as it came as a shock.