Tanzania’s tourism sector has come under pressure after the government announced that some establishments in the country’s national parks would be liable for an increase in concession fees of between US$30 and US$100 per night per person.

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According to Lathifa Sykes, CEO of Hotel Association of Tanzania (HAT), the increase will impact the future of Tanzania’s tourism industry. “Tourism is a global business that is very sensitive to price. Should Tanzania become too expensive, our hard-won tourists may go to other destinations that are perceived to be better value.”

Sykes says, furthermore, the sudden increase in fees creates immense business challenges. She explains that, for example, package rates have been published until 2016 without taking into consideration this massive increase. Either the establishments need to absorb the new cost or they need to pass it on to customer and risk cancellations.

The concession fee in itself is not new, however the fee used to be charged at a rate of 10% of half board as stipulated by law. The new fee is set at a fixed rate.

In 2011 TANAPA wanted to impose a flat fixed-rate fee per bed night sold as opposed to 10% of half board, which is variable. HAT, which represents 78% of the permanent accommodation facilities within the national parks in Tanzania, at that time decided to take TANAPA to court over this increase. In September 2014, the High Court found in favour of HAT and ruled that the new fixed rates were not legally in force since they had not been gazetted.

Following this ruling, TANAPA decided to legalise the imposition of fixed fees through two government notices, the first notice imposing fixed rates of concession fees from July 1, the second backdating the implementation time to May 28.

Sykes says a lot of questions remain unanswered.  “The notice covers only 27 lodges out of 44 accommodation facilities that operate in national parks. Why do the other 17 accommodation facilities, which we know pay concession fees, remain excluded in the Gazette? For most lodges covered by the Gazette Notices, the increase from the present 10% half-board formula to the new fixed rate represents an increase of between 200% and 1000%! Which begs the question, is TANAPA victimising the hotel investors that took them to court?”