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A Strategy for Tourism Development in Southern Tanzania

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A Strategy for Tourism Development in Southern Tanzania A Strategy for Tourism Development in Southern Tanzania Developed at the request of H.E. President Jakaya Kikwete and Hon. Minister Lazaro Nyalandu to guide coordinated development in the southern tourism corridor July 2015 This document was prepared by Dalberg Global Development Advisors and Solimar International, with funding from the United States Agency for International Development, under the Investment Support Program Task Order (contract number GS‐10F‐0188V, task order AID‐OAA‐M‐14‐00018). The principal authors of this strategy are Rhobhi Matinyi, Megan Shutzer, Simon Jones and Joe Dougherty. Any inquiries regarding the content of the strategy should be directed to Joe Dougherty at [email protected]. DISCLAIMER The authors’ views expressed in this publication do not necessarily reflect the views of the United States Agency for International Development or the United States Government. 1 CONTENTS Executive Summary .......................................................................................................... 3 Introduction ................................................................................................................... 16 Situation Analysis ........................................................................................................... 18 Overview of the Tourism Sector in Tanzania ............................................................................ 18 Key Players in Tanzania’s Tourism Industry ............................................................................. 19 Tourism in Southern Tanzania................................................................................................. 20 Understanding Supply: Primary and Secondary Attractions ........................................................ 22 Understanding Demand: Market Segments ................................................................................. 27 Key Actors ..................................................................................................................................... 35 Major Challenges .......................................................................................................................... 35 Strategic Analysis ........................................................................................................... 39 Building a Brand Identity for Tourism in Southern Tanzania ..................................................... 39 Competitive Positioning ......................................................................................................... 40 Analysis of Demand ................................................................................................................ 42 Growth Opportunities ................................................................................................................... 42 Value, Density and Experience ...................................................................................................... 47 Analysis of Assets ................................................................................................................... 48 Primary Attractions ....................................................................................................................... 48 Secondary Attractions ................................................................................................................... 50 Key Cities in Southern Tanzania .................................................................................................... 50 Implications for the Plan ......................................................................................................... 52 Strategic Programs ......................................................................................................... 56 Introduction ........................................................................................................................... 56 Strengthening Sector Leadership ............................................................................................ 56 Improving the Business Environment ...................................................................................... 58 Improving Management of Natural Resources ........................................................................ 61 Improving Awareness and Marketing ...................................................................................... 66 Expanding and Enhancing Tourism Products ........................................................................... 69 Primary Attractions ....................................................................................................................... 69 Secondary Attractions and Cities .................................................................................................. 80 Improving Infrastructure ........................................................................................................ 81 Action Plan ..................................................................................................................... 84 Prioritization of Action Items and Responsibility ..................................................................... 84 Timeline ................................................................................................................................. 88 Costs and Financing ................................................................................................................ 89 Budget ........................................................................................................................................... 89 Financing Options ......................................................................................................................... 90 Monitoring and Evaluation ..................................................................................................... 92 Annex............................................................................................................................. 93 Annex I. In-country tour cost analysis ..................................................................................... 93 Annex II. Visitor Density Analysis ............................................................................................ 95 Annex III. Estimated Carrying Capacity .................................................................................... 96 Annex IV. Projected Visitor Growth and Financial Impact ........................................................ 97 Annex V. Regional Air Lift Data ............................................................................................. 104 Annex VI. Workshops ........................................................................................................... 105 2 A Strategy for Tourism Development in Southern Tanzania Executive Summary The Context Southern Tanzania has a vast endowment of tourism assets. The principle draw is its national parks and reserves, which primarily offer wildlife safaris, including photographic safaris, walking safaris, night game drives, and boat safaris. Of these, Mikumi National Park, Ruaha National Park, and the Selous Game Reserve are the most popular, accounting for more than 75% of visitors to the region. In addition, the region also boasts beach and marine attractions along the Indian Ocean coastline, mountain ranges such as the Udzungwa Mountains National Park and historical sites such as Kilwa World Heritage Site. Together these attractions provide a diverse palette of activities for potential visitors. Southern Tanzania is also home to a number of ethnic groups that can contribute to and benefit from tourism. Large portions of southern Tanzania remain relatively underdeveloped, and the majority of the region’s population relies on subsistence farming. Communities in the area, particularly those in close proximity to the parks and game reserves share resources such as water with the animal population. These communities also have cultural activities that have the potential to enhance the tourism product. A conservation-friendly tourism industry will contribute to addressing persistent poverty in the region and helps protect natural resources, as park revenue can flow directly back into conservation, and the multiplier effect of tourism spending can grow the overall economy. Recognizing the role that southern Tanzania’s tourism industry can play in the improvement of economic and social conditions, the government of Tanzania requested the support of the US government to develop a tourism plan for the region. Effectively managed, tourism can increase investment, provide employment for locals, contribute to government revenue, create legitimate alternatives to poaching, and fund better management of the region’s biodiversity. It is with this motivation that this plan was conceived as a direct request from President Jakaya Kikwete of Tanzania and the Minister for Natural Resources and Tourism, Lazaro Nyalandu, following a conversation with US Ambassador to Tanzania Mark Childress and former United States Agency for International Development (USAID) Administrator Rajiv Shah in 2014. The Analysis Despite its endowment of assets, overall, the tourism industry in southern Tanzania is relatively underdeveloped and attracts a low volume of visitors. Tanzania’s nature-based tourism attracts more than a million visitors per year and contributes more than 13% of gross domestic product (GDP).1 Southern Tanzania, however, accounts for less
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