1 Jo) Nerorey “Tanzania is a growing tourism market which Jovago intends to nurture and grow by enabling both local and foreign tourists to discover more about their destinations long before arrival. We aim to show the Lola a 7 Ree len Io and discovery of Tanzania by use of our services” eg oN) The Tanzanian Factor Te ate ES CRT RE any Introd + Tanzania is recognized as the leading safari destination in Africa. Two of the most outstanding sites of natural beauty in the world, Serengeti and Mt Kilimanjaro, are found in the country. Tanzania is a home to 7 World Heritage Sites recognized by UNESCO, including Kilimanjaro National Park, Selous Game Reserve, Ngorongoro Crater Conservation area and Serengeti National Park, The Protected Cultural Sites include Kondoa Rock sites, Kilwa Ruins of Songo Mnara and Stone Town (Zanzibar) Tourism is a leading foreign exchange earner, presently out-performing the gold industry. In 2015 it attracted an income of USD 2.04 billion up from 1.90 billion in 2014. Destination Searc'! iene) y rae § ae ere ey Se aca e ae ea Lee) im Organisation + Tanzania Tourism Board + Jovago Q1 Data Petey East Aftica uction Tourism directly employs close to 600,000 Tanzanians and up to 2 million citizens indirectly. Tanzania's tourism sector ranked 93th globally and 8th in sub-Saharan Africa according to World Travel & Tourism Competitive report (WTTC, 2015). Almost 4,300 000 millions of passengers use the 3 main international airports in Tanzania (Arusha, Dar Es Salaam, Zanzibar). More than 20 international airlines operate in the country. The Direct contribution of Travel & Tourism to GDP in 2014 was TZS 2,975.6bn (1 359 Millions of US Dollar) which is equal to 5.1%. of GDP. hes by Customers Penis rer eoy 0 re) Tey err Tanzanian Hospitality Industry Tanzania is the ideal destination for Tourism investment opportunities owing to its peacefulness, natural resources, strategic geographical location and access to the global market (Ecowas, EAC, UN etc). ‘An abundance of tourism attractions has been a major pulling factor for the increasing number of international tourists compared to arrivals for business, transit or educational purposes. (Leisure(81%), VFR (7%), Business(6%), Transit (3%) and Others (3%)). The highest number of tourists are coming from Kenya (18%), Uk (7%), US (6%) , Italy (5%), Germany (5%) South Africa (4%) and France (3%). Tanzania attempts to potentially increase visitation from untapped markets such as China and Japan. Euromonitor International forecast a 4.5% year on year increase in number of tourists arrivals to Tanzania from 2015-2019. This is aline with the historic tourist arrival trend. Major pole of destinations include Zanzibar Island, Serengeti National Park, and MU Kilimanjaro due to the high concentration of the best hotels and tourist attractions. Direct Contribution TZSbn Direct Contribution of Travel & Tourism to GDP 6000 5000 4000 3000 2000 1000 2014 2015 2025 ell si=r- eta) ee Eee The best months for tourists arrivals in Tanzania are during the dry season from the late June to October and to some places in July to March. The low season includes the months of March, April and May when ‘long rains’ are expected The Tanzania Tourist Board (TTB) has been named as one of three Best Tourist Boards in Africa by the 2015 Travvy Award that recognizes the highest standards of excellence in the Industry today. Luxury accommodation can be found in Zanzibar, Dar es Salaam, Arusha and popular national parks like Serengeti Tanzania plans to increase the tourism marketing budget in 2016 according to the new Tourism minister, Prof Maghembe. According to the five-year marketing blueprint rolled out in 2013, Tanzania expects to welcome two million tourists by the close of 2017, boosting the tourism revenue from the current $2 billion to nearly $3.8 billion, Foreign and Domestic Visitors spending in (%) Domestic vs Foreign® Foreign vator sponding 60% ml 40% lata, 2015 - Jovago data: BI by Star Ranking % Hotel search by CRE Arusha Poy Peis cL Ea Ter) peer mn EL eS o Bagamoyo 20% 30% = Outlook on the Tanzania Tourism Industry Tanzania? Rapid econom What does the future hold for the tourism industry in Tanzania has a lot of potential, it's a virgin market with lots of attractions for both domestic and foreign tourists to discover. ic growth averaging 7%, and peace and stability are factors which provide a conducive environment for tourism growth. With the Tanzania Tourist Board aiming to attract over Andrea Guzzoni Country Manager, Jovago Tanzania two million foreign arrivals by 2017, Jovago are expanding their capacity to meet the expected demand for accommodation and leisure services. Is there room for the growth of the local tourism industry to match that of inbound tourism? Yes indeed,with attractive, affordable offerings and targeted marketing by travel and tourism operators the industry is set to expand the earings from domestic tourism. While travel for business and family reasons is very strong there is still huge potential to offer attractive priced and varied holiday or leisure options to the rising middle class in the country. Hotel Rooms in Popular Visitor Destinations oN id Da} Kilimanjaro aed recy eo ceed Mr Richard 0.8 Rugimbana Executive Secretary of the Tourism Confederation of Tanzania (TCT) What is the outlook for the hospitality industry in terms of market predominance, the impact of technology and shift in management structures? Tanzania's hotel industry is generally a young industry albeit beginning to show signs of rapid growth in serving both domestic and foreign guests. At present Tanzania receives over 1.2 million tourists and with the The Ministry of Natural Resources and Tourisms’ master plan, has the goal of attracting 2 million arrivals next few years. Brand wise we do have prestigious names such as Singita Grumeti, Hyatt, Ramada, Sopa and Serena etc. As further growth continues we believe more reputable brands will be coming in. Likewise our own local brands will also begin to. make an impact. Manpower is still a challenge but we are building the capacity of young Tanzanians to take over managerial roles in the near future, Overall Tanzania is on steady road to develop a reputable hospitality sector. Are there any trends in customer preferences? The bottom line is travelers constantly seek quality services combined with the value for money. With the rise of mobile communication, free wireless intemet and similar services are increasingly desired by travelers wanting to stay online and connected with the world. Is there any difference in challenges when developing a hotel group chain as opposed to a stand-alone brand? Yes it is clear that chain hotels of reputable brand do have an advantage based on in-house capacities to leverage on (strong marketing outfits, quality services, etc). The kind of holiday experiences Tanzania offers does also allow stand alone brands to develop niches of their own offering unique and specialized services. Likewise smaller hotels and mostly in regions are beginning to offer quality services for domestic tourism (carving a new niche of their own) Top Challenges of th all | aed ea eat ea Improving transparency yi ea ers dev UE Pree r in) cece Peres 3.409 Cera} vay Daa) Se ous Ce! 109 Ca Yehia El Mansoury Group Director of Business development DoubleTree By Hilton What are the main challenges facing the hotel industry in Tanzania? Tourism has the potential to generate more revenue to the economy and further increase employment for the younger people. Tanzania has vast array of places that attract tourists, much better than other countries in east and central Africa. High taxation is one of the challenges that cause strain on the industry, as major tourism products and services are subject to VAT, which can increase the price of services. Other major challenges facing the industry include developing a diversity of offerings, including wellness and spa treatments, water sports, and specialist guiding. There are also challenges in terms of the price of air tickets. There are also issues around hospitality management standards/training and the development of frontline staff communication skills in terms of English language development. How are you responding to the industry shift towards e-commerce in the tourism sector? E-commerce is having a real impact on the industry, we look to institutions such as Tanzania Tourist Board to take a lead in this area and help the nation’s hospitality sector embrace the technology changes. ‘As a part of Hilton Worldwide we always invest in new technology and e-commerce to maintain our competitiveness. Hilton Worldwide launched digital check-in with room selection technology, now available at more than 3,700 hotels. This is now a worldwide service and operates in Tanzania. How would you rate the government's support of the hotel industry in Tanzania? The Tanzanian government is very much involved in the sector and well recognizes the place of tourism as a major contributor to the economy; the industry has to work with government to develop a fair taxation system to capture income for the revenue authority but also provides a commercial situation that attracts investors and lets businesses prosper. e Hospitality Industry >) =. ee een ed Na E-tourism Number of Tanzanians Intemet subscribers has reached 9 million users, over 20% of the total population in 2014 Internet connectivity is growing rapidly. There are more than 40 companies to choose from but Vodacom, Airtel, Smileand Tigo are the most popular Tanzania Internet Service Providers, Most people access internet through their mobile phones and internet cafes, but Wifi has been a major essential need in the hotels and work areas. The national Fibre-optic broadband technology provides 3G speed and 4G speed. Over 16.4 million or over 34% of subscribers have mobile money accounts. Tanzania as a top country in mobile money usage in Africa. In December 2015 the registered users of mobile payment services reaching a ratio of 84% that surpasses Kenya's rate at 68%. In 2045, the Tanzania Tourist Board launched an official app to boost local tourism, this app is available at Google Play Store. Payment Options Cote) 19 Payment Method Percentage of bookings eau DSi 41% cr ete Payment at the hotel rr Customer H By star rating Sstars 1% 1 star 9% I 4 stars 21% 2stars "28% 3 stars 35% Jovago ie 1,000 hotels otel Demand By amenities Transport 5% Bed and Breakfast 15% wi 29% ac 22% ‘Swimming poo! 29% nan Booking