THE Tanzania Association of Tour Operators (TATO) yesterday distanced itself from alleged fraudulent activities by certain tour operators using the Government Payment System (GePG).

Elirehema Maturo, the TATO executive director, said at a press conference here yesterday that the association supports the Treasury in its efforts to improve the tourism industry's operational integrity and transparency.

The Treasury said late last week that transactions amounting to $1m (2.7bn/-) were improperly transacted by tour companies, pointing at Peacock Tours and Safaris Ltd and Kilimanjaro Heroes Adventure Ltd.

He was thankful for being informed about the tour operators involved in using stolen payment cards for government payments, underscoring TATO's commitment to upholding ethical standards within the industry.

The association was also ready to cooperate with government initiatives aimed at eliminating fraudulent practices, he said, while Wilbard Chambulo, the TATO chairman also voiced his outrage.

The fraudulent activities were unpatriotic and in violation of the laws, regulations and procedures governing the tourism sector, he stated, noting that such behaviour tarnishes the reputation of the tourism industry.

By disowning firms involved in such conduct, TATO was sending a clear message that unethical practices will not be tolerated in the lobby or in the wider tourism community, he declared.

Only two out of 323 active TATO members were implicated in the Treasury complaint, to which TATO swiftly moved to address. It contacted the firms on Thursday, September 5, asking them to visit respective NMB Bank branches to rectify the situation.

“This immediate action demonstrates TATO's commitment to maintaining the highest standards of integrity and accountability among its members,” he emphasised, 

The government needs to ensure that all tourism service payments are processed through the banks and made in the name of the respective tour company, he stated, objecting to the use of third party payment cards, he said.

This would enhance transparency and accountability in tourism industry transactions and thus safeguard the industry's integrity, he said, at the climax of the body’s reaction to a latter by the Treasury dated September 4, signed by Dr. Natu Mwamba, the permanent secretary.

It said that some tour operators processed over $1m in transactions using fraudulent cards, thus barred from using the payment system (GePG), with the Treasury expressing concern that such fraudulent activities undermine efforts to promote tourism and simplify government payments.

Unchecked, such practices could damage the tourism industry’s reputation and harm the country's economy, she stated, noting that the use of stolen payment cards could also lead to international financial institutions reconsidering their cooperation with Tanzanian banks.

This could potentially reduce investment flows and hinder economic growth, deter foreign banks from processing transactions here, thus impacting visa issuance and tourism sector needs, she stated.

Cautioning that tourists might opt for other destinations and deprive the country of foreign currency, Dr. Mwamba urged TATO to advise its members to cease using stolen cards and return illicitly obtained funds to NMB Bank.

This is vital to support efforts by President Samia Suluhu Hassan to promote tourism, she added.