Amin Sammour Investing In The hunting Tourism Industry in

Amin INVESTING IN THE HUNTING TOURISM INDUSTRY IN Sammour TANZANIA

Table of Contents

1.1 Executive Summary……………………………………………………………………….. 3

1.2 Introduction ……………………………………………………………………………….. 3

1.3 Background of Study ……………………………………………………………………... 5

1.4 Management and Administration of The Hunting Tourism ………………………….. 8

1.5 Performance Of The Hunting Tourism Industry ……………………………………… 11

1.6 Payment Fees, Hunting Tourism Procedures & Hunting Tourism Packages ……….. 12

1.6.1 Payment Fees ………………………………………………………………………. 12

1.6.2 Hunting Tourism Packages ……………………………………………………….. 14

1.6.3 Hunting Tourism Procedures …………………………………………………….. 16

1.7 Value of concessions and hunting companies ………………………………………….. 17

1.8 Conclusion ……………………………………………………………………………….. 18

1.9 References ……………………………………………………………………………….. 20

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1.1 Executive Summary :

Tourist hunting in Tanzania has developed over a long period and is now a well established industry and a principle source of income for vast areas of the country. The industry has demonstrated an impressive growth in recent years and is an important source of foreign exchange to Tanzania.

1.2 Introduction :

Of all the African hunting countries, Tanzania is without a doubt the one that most stimulates the imagination of hunters and non hunters alike. This former German colony once known as

Tanganyika became an English territory after the First World War. In 1964, along with new found independence, its' name was changed to Tanzania. (A.E. Cauldwell, 2004)

The greatest hunters of the twentieth century have celebrated Tanzania, its wildlife and its hunting, as being among the most abundant on the African continent. The most famous of these great hunters include President whose in 1905 required nearly 300 porters, and Frederick Selous, arguably one of the greatest white hunters of all time, who at over sixty years of age lost his life in 1917 while fighting for the Africa he loved so well against the

German Army. As for literature and film, they hold a special place for Tanzania, not the least of which is Hemingway's novels. (A.E. Cauldwell, 2004) (Wall B, 2006)

Tanzania has long been considered the ultimate hunting safari destination in Africa. Fulfilling the dream of a traditional big game hunting safari, the likes of which so many hunters have read about, continues to be a big draw to Tanzania unspoiled wilderness.

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Tanzania enjoys a beautiful coastline along the Indian Ocean and shares borders with Kenya and

Uganda to the north, Rwanda, Burundi and the Democratic Republic of Congo to the west,

Zambia and Malawi to the southwest and Mozambique to the south; Tanzania is home to a wide range of African wildlife and still allows the hunting of four of the famous Big Five species;

Elephant, , Buffalo and Leopard. And it's no wonder with over 40 species to hunt. (Wall B,

2006)

Since 1988, the regulation of increasing numbers of private sector outfitters has been undertaken by the Government Department of Wildlife. As a result, Tanzania's tourist hunting industry has grown considerably in the last few years. In Tanzania today, wildlife enterprise is widely considered a viable development strategy for income-poor communities in wildlife-rich areas.

Wildlife enterprise has complex goals and is expected to provide financial and other benefits as well as incentive to conserve local wildlife. As a result, tourist hunting plays an important role in the areas because many areas are either too remote or cannot provide highly visible wildlife populations, or do not to compete with prime game viewing areas. Therefore tourist hunting is the most economically viable form of wildlife utilization. As also it plays an important role in the economic development of many remote areas. Without the income generated from tourist hunting, many important wildlife areas would cease to be viable. So it is a better choice to invest business about tourist hunting in Tanzania. (Wall B, 2006)

There are many well established hunting companies that usually hold many hunting blocks and whom provide outstanding professional service, uncompromising quality of superbly equipped and comfortable tent camps and well maintained four-wheel drive custom designed safari

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Amin INVESTING IN THE HUNTING TOURISM INDUSTRY IN Sammour TANZANIA hunting vehicles. The temporary camps/facilities are erected prior to the start of the hunting season and removed in accordance with the hunting regulations at the end of the season. All include electricity and often modern communications such as satellite phone, even satellite TV as well. The western style cuisine is often of high quality. For the Selous and the central and western areas, the hunting territories can only be reached by plane. The flight from the capital,

Dar-es-salaam, is on average one and a half to two and a half hours.For the Masai land, hunting areas are reached by car from Arusha, a journey that normally requires three to four hours.

1.3 Background of Study :

Tourist hunting has already developed over a long period in Tanzania, and it is the main income for vast areas of the country. In recent year, the industry of tourist hunting has demonstrated an impressive growth and it is also an important source of foreign exchange to Tanzania. There are over 130 hunting concessions in Tanzania, which covers an area in excess of 250,000 km2, also they are leased to outfitters licensed to conduct tourist hunting. Besides, there are more than 60 species can be hunted on a tourist-hunting license. As a form of land use, tourist hunting generates significant income for local communities involved in community-based natural resource management as well as for national economies of these countries. Under appropriate governance and institutions conservation hunting has been a powerful tool used to promote conservation and rural development and thus improve the livelihoods of local communities.

(Frost and Bond, 2006, Taylor, 2009)

There are two types of hunting which are legally recognized in Tanzania. These are tourist hunting and resident hunting. Tourist hunting takes place in Game Reserves, Game Controlled

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Areas, and Open Areas and in Forest Reserves. Resident hunting takes place in Game Controlled

Areas and Open Areas not allocated to tourist hunting. According to the Wildlife Act of 1974, all hunters are required to obtain a valid hunting license or written authority which is issued upon fulfilling conditions e.g. the applicant has attained age of 18 years, posses a valid firearm license in respect of the firearm intended to be used in hunting and that he has a reasonable knowledge of the use of a firearm for the purpose of game hunting.

Land and wildlife in Tanzania is owned by the government. No hunting is allowed without the permission of the government, in this case the Wildlife Division in the Ministry of Natural

Resources and Tourism. Hunting of wildlife without permission is illegal. (Nyiti, 2008)

Tanzania has over 140 hunting concessions covering an area in excess of 250,000 km² that are leased to outfitters licensed to conduct tourist hunting. These concessions are distributed throughout the country either in Game Reserves, Forest Reserves, Game Controlled Areas or

Open Areas. Hunting is not allowed in National Parks, Ngorongoro Conservation Area or within

1 km of the boundary of these areas.

The hunting areas can naturally be divided into three greater ecosystems, namely Masailand,

Selous / Coastal and the Western Tanzania ecosystem. These areas each have their differences and unique values which relate to advantages and disadvantages.

1. Masailand Ecosystem – This area has the advantage of having Arusha centrally located within, where many hunting outfitters and the tourist industry generally are based. Also the proximity of many National Parks and the Ngorongoro Conservation Area ensures there is plenty of wildlife.

It is a low rainfall area where the major habitats are Acacia woodlands and dry open grasslands.

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Specialized species for Masailand include gerenuk, oryx, gazelles and Coke’s hartebeest, but there is general scarcity of lion available for hunting.

2. Selous / Coastal Ecosystem – Most hunting here is concentrated in and around the Selous

Game Reserve which is renowned for its generally high wildlife populations and abundant hunting opportunities. This area offers good elephant trophies, while the other specialized species is Rooseveldt’s sable. The most prominent habitat is mixed Acacia – miombo woodlands. The area is however characterized by many small hunting concessions with many different operators, attributed to relatively easy access from Dar es Salaam.

3. Western Tanzania Ecosystem – These areas are remote, but characterized by large concessions. These are generally high rainfall areas where the major habitats are Miombo woodlands and wetlands. Many wildlife populations have been reduced through illegal harvesting, but nevertheless most species offer higher quality trophies than elsewhere. There is a wide diversity of species available for hunting, with specialized species including , roan, oribi and Lichtenstein’s hartebeest. (Nyiti, 2008)

Schedules of the Hunting Regulations that support the Wildlife Conservation Act specify the types of animals that may or may not be hunted on a hunting license. A wide range of animals

(approximately 60 species) can legally be hunted by tourist hunters in Tanzania. However,

Giraffe, Cheetah, Rhino and Wild Dog are protected game and cannot be hunted in Tanzania.

The Hunting Regulations stipulate the fees for hunting every type of animal, and further specify a minimum number of hunting days.

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The Wildlife Division leases hunting concessions on a five-year tenure to hunting outfitters

(mostly private companies) that fulfill the requirements defined in a set of hunting regulations, and who have been authorized to guide foreign clients on big game hunting during the hunting season.

Decisions on allocation of concessions are made by an Advisory Committee on Block Allocation appointed by the Minister of Natural Resources and Tourism. This committee screens applications by hunting outfitters and advises the Minister accordingly. (Wall B, 2006)

The Wildlife Division allocates a quota of animals that can be hunted within each concession during the hunting season. The hunting quotas are annually modified on an adaptive approach using data from wildlife censes, observations of Game Reserve managers, and hunting success of previous years. Outfitters must utilize the wildlife on quota to generate revenue not less than

40% of the value of the total quota allocated. (Kibonde, 2003)

1.4 Management and Administration of The Hunting Tourism

The various hunting concessions are distributed throughout the country either in Game Reserves,

Game Controlled Areas or Open Areas , The Wildlife Division leases the concessions to hunting outfitters that fulfil the requirements defined in a set of hunting regulations and who have been authorized to guide foreign clients on big game hunting safaris. Each concession is allocated a quota of animals that can be hunted during the season (July to December). (N. Leader-Williams,

1996)

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The quotas may be adjusted annually for a variety of reasons and a single outfitter can be allocated more than one concession. Concessions are leased on a five-year tenure, however there is no guarantee that a concession will be re-allocated to the same operator. Nevertheless some operators have held.

The existing system of awarding hunting concessions by the Wildlife Division entails companies submitting their applications to the Wildlife Division, which are screened according to the following criteria:

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- Company legal status

- Type of venture (local, foreign or joint venture)

- Capital and working equipment commitment.

An Advisory Committee on Block Allocation appointed by the Minister of Natural Resources and Tourism evaluates the applications and provides recommendations to the Minister for approval. The Director of the Wildlife Division is both the Secretary to the Advisory Committee and advisor to the Permanent Secretary of the Ministry of Natural Resources and Tourism.

Concessions are not allocated according to a transparent market-driven system. (Mantheakis,

2003)

Once allocated a concession, the outfitter is required to pay all the necessary fees, and apply for hunting permits for clients that intend to visit the area. The outfitter is also required to enter into an agreement with the Director of Wildlife that outlines the responsibilities of the government and the outfitter. The outfitter must abide by the wildlife laws and is expected to contribute to anti-poaching, road construction and community development. These criteria are only vaguely defined. A professional hunter licensed by the Wildlife Division must guide clients on the hunt.

(Broomhead, 1997)

The Wildlife Division offers 21-day, 16-day, 14-day and 7-day safaris (Elephant, lion, leopard, hippo and a variety of large antelope (greater and lesser kudu, eland, puku, gerenuk, oryx, sable, sitatunga and roan) are only available on 21-day safaris. Bushbuck, bushpig, dik dik, duiker, hyaena, oribi, reedbuck and waterbuck can only be hunted on a safari of 14 days or more, while

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7-day safaris are solely for buffalo and variety of plains game (hartebeest, warthog, gazelles, impala, topi, wildebeest and zebra). Three buffalo can be hunted on a 21or 16-day safari, whereas two buffalo can be taken on a 10 or 7-day safari. A 21-day safari allows the client the greatest flexibility to choose his/her hunting bag, and is thus the most popular safari, although few clients will stay the full length or hunt the full bag permitted. (A.E. Cauldwell, 2004)

1.5 Performance Of The Hunting Tourism Industry:

The primary measure of performance of the Tanzanian tourist hunting industry is the income generated, and how this is split between the Wildlife Division and the private sector.

The following overview provides a realistic estimate of the magnitude of the industry as well as its growth over the past years.

By comparison to the above figures, Hurt and Ravn (2000) estimated that the minimum revenue of the tourist hunting industry in Tanzania in 1995 was approximately US$ 30 million.

They arrive at this figure based on a hypothetical situation where 30 hunting companies fully utilize 80 concessions, which can be regarded as quality areas. Of these revenues, 45% would accrue to the safari outfitters and 41% would accrue directly to the Wildlife Division with the balance going towards other service providers.

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Average income to the Wildlife Division per hunting client is approximately US$7,000 Income generation in the has grown on average by 13.7% per annum from 1988 to

2001. Income from trophy fees and conservation fees has grown by 14% and 17.5% respectively.

Income generation per unit area from all hunting areas of Tanzania is approximately US$ 40 / km². Hunting income per unit area for the Selous Game Reserve (SGR) is approximately US$

70 / km. (Baldus R. , 2001)

The number of hunting clients visiting the Selous Game Reserve has grown by nearly 400% from 1988 to 2001. Income generation has however grown by a lesser 250% over the same period, despite an increased utilization of concessions. Income generated by the Wildlife

Division per hunter day has remained static at approximately US$520 per hunter day. 141 concessions are leased to 42 companies; however 32 groups of companies exist. 51 concessions

(36%) are leased to the 3 largest groups. (Baldus, 2003)

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1.6 Payment Fees, Hunting Tourism Procedures & Hunting Tourism Packages :

1.6.1 Payment Fees:

Under the current system, the outfitters are only required to pay the Block fee (US$7,500) in advance (only 10% of their payments to the Wildlife Division). The remainder of the funds are paid only after their clients arrive: 27% when the hunting clients arrive and purchase a permit, but the bulk (63%) is paid at the end once hunting season is completed and accounting work has been finalized, the deadline for this payment being 30 April. On the other hand, the outfitters typically demand a 50% advance payment of the daily fees by their clients on booking a safari 6 to 8 months prior to the hunt. The remainder of the daily fees must be paid in full at least 2 months prior to the hunt. Interest accrued by the industry on this amount probably exceeds US$1 million per annum. The outfitters also encourage their clients to take out insurance against cancellation of a hunting safari, as refunds are normally not considered. The hunting outfitters therefore take minimal risk of loss of income. (A.E. Cauldwell, 2004)

The hunting outfitter will, however, charge very much higher fees to the clients for the privilege of hunting. Typical daily fees billed to hunting clients coming to Tanzania range from USD

1,800 to USD 2,500 per day. The hunting outfitters will usually apply similar rules to the

Wildlife Division, whereby minimum length safaris are applied to hunt certain types of game, for example to hunt a lion a client must pay for a full 21 days even if the he/she spends less days in a hunting camp. Some outfitters will also have a mark-up on the game fees charged by the Wildlife

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Division. The outfitter will normally arrange an air charter for the client to fly directly into the hunting area . (A.E. Cauldwell, 2004)

Currently there are over 40 hunting outfitters leasing concessions in Tanzania. The hunting outfitter must market the hunting opportunities within his concession to attract clients. Normally this is done through agents based in the United States and Europe, and through setting up a stand at international hunting exhibitions, such as the Safari Club Annual Conventions.

1.6.2 Hunting Packages:

The hunters can hunt in a special area which good at services and detail toll regulation. They offer from special cap, accouterments and shoes to seal, car, tabernacle, compass and knife. This kind of tourism is a special case, which services including transportation, domestic air charters and packaging and shipping. Moreover, this is a unique marketing for people who are rich and like hunting, and it is likely to special plan for special market and just services in this small market segment. The visited in their home just search the performance from internet, where we can hunt, price and the kinds of animals. And this profit is a powerful tool to control this fact.

They can book anything about hunter at home from internet. And usually this kind of negotiations can finished in 18 months, the price will over than $100,000 just for a 21days experience hunting set, without any other cost about other additional like closes, shoes and caps.

The package of hunting tourisms has much difference. So that, the hunters or the visitors has many choice of the package. For this task the tourism company usually has many basic prices,

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Amin INVESTING IN THE HUNTING TOURISM INDUSTRY IN Sammour TANZANIA each of the hunters or visitor can choose “Big game”, “Specialty”, “Primary” and “Normal”.

They will detail show to the hunter and the visitor that, how many services, accouter and how many kind of animals can be hunt. The hunter or the visitor can chose any safari package from the internet, which they like, from one day to 28 days package. For example, 28 – day classic,

21-day lion game, 14 – day leopard and 10 – day buffalo safari in Tanzania, they provide the estimated overall basic cost of the safari will list as below.

Basic these parameters all of the cost about US$140,000, the visitor or hunter can hunt elephant, lion, leopard and etc. in the 28 days package. Ant the lowest normal package, usually cost

US$87.000. And usually they will choose the 21 days package big game safari, include elephant, lion, leopard and buffalo. Between the companies usually offer different price from 111,000 to

81,000, it is because the different services in sight.

The different company competitive between the 14 days and 10 days package, overall cost can be used in this include leopard, buffalo, plains, and especially the 14 days package can hunt . Everybody know that, lion cannot be hurt by other land, only Africa can do like this. The lion hunt need cost from US$84,000 to US$93,000. And the different between buffalo and lion with other packages is the high cost, 10 days usually higher than US$46,000 to US$33,000.

Although the 28 day safari package average cost US$116,000, and the hunter or the visitor can add another small services package from US$35,000 to US$45,000 will be in the final bill. The company services staff will show it detail, include special guns, clothes, and the class for guns or other hunt knowledge, actually, the visitor can got some certificates from these services.

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Moreover, the daily charge of rate will basic the 20% to 40% of the cost (US$12,000 to

US$60,000), and the cost depending the 30% of the hold cost of the package of the total expenditure of hunter’s. and some times, the hunters has some commissions, this calculated will be cost 15% per day rate, and also cost 3% to 6% to visa and other services, these are all less than 1% of the total cost. At the end the really highly variable will depends on the taxidermy, most of the reach people like this services. And some of the prices are: Zebra shoulder mounts $

1,500, Zebra rug is $300 and Elephant shoulder mount: $10,000 - $20,000 depending on whether tanned skin or synthetic skin is used and etc. these will cost more than 70% of their total bill.

1.6.3 Tourist Hunting Procedures:

Finding clients and utilization of quota is the responsibility of the outfitter that leases a concession. The outfitter secures hunting clients, and hosts them in a hunting camp constructed within the concession. The hunting regulations allow only temporary constructions for hunting camps, and the camp must be removed at the end of the hunting season. The hunting season extends from 1 July to 31 December each year. The hunting client brings his/her own hunting rifles, and needs a weapons import license issued by the Police. (Nyiti, 2008)

Prior to hunting, the client assisted by the outfitter must obtain a hunting permit. It is issued in the name of a client, and allows a restricted variety and number of animals that may be hunted, depending on the length of safari, rifle calibers and the area where the hunting will be done. The client must pay the permit fee and the conservation fee per day.

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During the hunt, the client must be guided and protected by a professional hunter, whose services are provided by the outfitter, and licensed by the Wildlife Division. He is typically the host of the client during the entire hunting safari. The Wildlife Division Provides a game scout who supervises the hunt and provides protection to the client if necessary.

After hunting, the client must complete the permit showing which animals have been hunted and/or wounded. This is validated by the game scout that accompanies the hunt, and presented to the game reserve manager / local authority, who then issues a letter of clearance allowing the hunting trophies to be taken out of the hunting area. The completed hunting permit is issued to the hunting office that then bills the client for the animals hunted (Nyiti, 2008)

1.7 Value of concessions and hunting companies :

The analysis of the Selous hunting data reveals a wide range in the income generated from concessions, with the highest earning concessions generating 4 times the income of the lowest earning concessions. The willingness of outfitters to lease lower potential concessions at the current rates strongly suggests that a considerably higher lease is possible from the concessions with higher potential.

In some instances entire concessions are subleased and there is reliable evidence that these are leased at values up to 20 times (in excess of US$130,000 per annum) the rate at which they are leased from the Wildlife Division. There is unsubstantiated evidence that rents of up to

US$200,000 per annum are possible from some of the highest potential hunting concessions.

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Clearly the current fixed rate of US$7,500 per annum is a gross under estimate of the value of concessions. Outfitters are able to sell their companies at high prices. Evaluation of a company sold recently indicates that the market value of a concession lease (after deduction of fixed and movable assets) was conservatively estimated at US$ 50,000 per annum. The demand for concessions is high and they are certainly valued commercially at not less than US$ 150,000 to

US$ 200,000 per 5-year lease.

The value of a hunting company is therefore determined essentially by the allocation of concessions which is done through political decision, and common sense implies that each outfitter is wise to make every effort to influence the process. A market based allocation would dramatically alter the situation to one where companies are valued on sound economic principles rather than the subjective discretion of a few individuals. (A.E. Cauldwell, 2004)

1.8 Conclusion & Recommendations :

Tanzania enjoys an abundance of natural wealth, which offers tremendous investment opportunities for investors. These include an excellent geographical location (six land locked countries depend on Tanzania ports as their cheapest entry and exit ports); arable land; world renowned tourist attractions (Serengeti, Kilimanjaro, Ngorongoro, and the Spice islands of

Zanzibar); natural resources; a sizeable domestic and sub regional market; a wide local raw materials supply base; abundant and inexpensive skills; assurance of personal safety; warm friendly people and a suitable market policy orientation.

Tourist hunting plays an essential role in the areas where it is conducted and for conservation in

Tanzania in general. Tourist hunting is economically the most viable form of wildlife utilization

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Amin INVESTING IN THE HUNTING TOURISM INDUSTRY IN Sammour TANZANIA for these areas as they are either too remote or do not support highly visible wildlife populations, and therefore cannot compete with prime game viewing areas. Without the income generated from tourist hunting, many important wildlife areas would not be viable.

The Tanzanian hunting industry compares favorably with other hunting industries in Africa.

However, the country should be able to take the lead in the industry with the available resources and the amount of big game hunting opportunities. Investing in this industry sounds interesting and profitable regarding to the industry performance study ,

Also there are too many major reasons encourages foreigner to invest such as High degree of investment security because of unparalleled political stability that is strife-free without ethnic division; democratic rule that respects diversity of opinion and a strong tradition of constitutionality and rule of law; Business-friendly Macro-Economic Stability with low inflation

(4.2%), stable exchange rates supported by unrestricted and unconditional transferability of profits, loan repayments, emoluments, royalties, fees and changes;

Tanzania has been rated as number one investment destination with the highest sales growth by the UNIDO´s Report of Foreign Investor Perception Survey, November 2003.

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References:

-A.E. Cauldwell R. B. (2004). TOURIST HUNTING AND IT’S ROLE IN DEVELOPMENT OF WILDLIFE MANAGEMENT AREAS IN TANZANIA.

-Baldus. (2003). The Economics of Safari Hunting .

-Baldus, R. (2001). The Economics of Safari Hunting.

-Broomhead. (1997). Financial Management of the Tourist Hunting Sector in .

-Kibonde, S. (2003). Seeking Conservation Partnerships in the Selous Game Reserve, Tanzania.

-Mantheakis, M. &. (2003). Optimisation Proposal, Proposal to revisit the hunting permit system with the aim of increasing tourist hunting revenue by dopting a “retail” rather than the present “wholesale” approach. .

-N. Leader-Williams, J. A. (1996). Hunting Tourist in Tanzania.

-Nyiti, P. (2008). TOURIST HUNTING IN TANZANIA: SOME FACTS.

-Wall B, C. B. (2006). When does hunting contribute to conservation and rural development? In Recreational Hunting, Conservation and Rural Livelihoods: Science and Practice.

-Whitman Karyl, S. M. (2004). Sustainable trophy hunting of African lions.

-Frost, G H, and Ivan Bond. 2006. CAMPFIRE and the payment for environmental services. International Institute for Environment and Development, London.

-Taylor, RD (2009) Community based natural resource management in : the experience of CAMPFIRE. Biodivers Conserv (2009) 18:2563–2583.

-Wall, B. and Child, B. 2009. When does hunting contribute to conservation and rural development? In Recreational Hunting, Conservation and Rural Livelihoods: Science and Practice. 1st Edition. Edited by B. Dickson, J. Hutton and W.M. Adams. Blackwell Publishing, pages 255 – 265.

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Amin INVESTING IN THE HUNTING TOURISM INDUSTRY IN Sammour TANZANIA

 Born in Amman-Jordan, 1986.

 2004-2008 Studied at Princess Sumaya University for Technology PSUT, Computer

Graphics and 3D Animation, Amman-Jordan

 2011-2013 Studied at UCSI University , Master's In Business Administration MBA ,

Kuala Lumpur, Malaysia

Email : [email protected] , [email protected]

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