Analysis of Tourism Markets in the region

Analysis of Tourism Markets in the region

Mauritius National Workshop onSADC Services Negotiations

Restaurant 27, Port Luois17th July, 2012

Prepared by: Viola S. Nanyaro (SADC Secretariat)

Overview of Tourism Market• General overview

– contribute above 4% of GDP in SADC economies– Sector development is relatively developed and affected by development in

other sectors including as communication, finance and transport• Common restrictions

– Land – Residency requirement – Size of establishment (i.e. number of rooms, class in terms of level of star)– Minimum capital requirement

• GATS Commitments– Hotels and restaurant (All except Madagascar)– Tour Operators & travel Agency (except AO, MG, MZ, SZ, & TZ)– Tour Guides (only 7 = DR, LS, MW, MU, SA, ZM & ZW)

• See individual countries for limitations

Botswana: Tourism Services

• Overview– contribute about 5% to GDP– Licence required for establishment

• Restrictions: and state land is leased to tourism organisations for 15years (renewable) and tribal land for 15years

• GATS Schedule – M2&M4 for hotels and restaurants, including catering

(CPC 641-643), and travel agencies and tour operators are lliberalised under GATS

DRC: Tourism • Enormous investment opportunities due to variety of ecotourism attractions

(water resources, imposing mountains, ethnic and cultural diversity)• Number of tourism visitors very law (35,000 against a target of 100,000 in 2010)• Sector is regulated by the Ministry of Environment, nature Conservation and

tourism through national Tourism Office• Draft regulatory framework law on tourism• Private sector involvement in travel agencies, hotel, transport and restaurant

services after obtaining non-transferable licence and may get tax incentives• No liberalised under GATS though full liberalization commitment was made in

some tourism-related services such as sports and other recreational services; and other services provided to companies : related to agriculture, hunting and forestry ( CPC 881) and those related to fishing (CPC 882)

Lesotho: Tourism

• Accounts for 4.7% of GDP• Stagnant growth (0.1% over 10 years) • highly dependent (>90%) over SA Market • Seasonal (mostly Easter, July/September and

Christmas holidays)• No restriction on foreign entry• Potential for growth due to natural environment

coupled by government efforts under Tourism Strategy 2010

Malawi

• Tourism: – contributes 5% of GDP– One of the major employer– Non discriminatory licensing measures– Foreign visitor are charged in foreign currency for

accommodation – Foreign operation is allowed through subsidiary,

branches, JV and representative offices though subjected to at least 3 resident directors

Mauritius: Tourism– Contribute about 9% of employment (excluding indirect jobs)– 1989, the maximum number of rooms per hotel has been limited to 200 for new hotels– Hotel projects must be financed by at least 40% of equity, and the hotel companies must

be incorporated in Mauritius– Beach hotels must have at least 4 acre of land – rapid expansion of tourism is increasing the pressure on the ecology of the land and

beach areas thus hotels with over 80 rooms are required to install their own waste treatment plant

• GATS Commitment– Foreign participation in the capital of duty-free shops is limited to 30%– provision of car rental services and yacht and cruise only Mauritian nationals– Foreign travel agencies, arranging for services in Mauritius, must work through an agent

established in Mauritius. – Foreign hotel and restaurant operators must be staffed predominantly by Mauritians. – The provision of tour-operating services is in principle restricted to Mauritian nationals,

although commercial presence is allowed for foreign operators subject to a permit– Tourist guide services are restricted to Mauritian nationals

Mozambique: Tourism• tourism potential is largely untapped • progressively placed 31% of its land surface under conservation;

consisting of 6 national parks and 6 natural reserves state-managed, and 12 hunting reserves and 13 game farms, which are privately managed

• tourism development include expensive intercontinental air fares, limited internal transport services, and onerous visa requirements

• M3 is regulated by the investment code which requires different tourism product to be licenced

• Tour operators despite licence they must lodge a caution (Mt 500,000), and be insured

• No GATS commitment in this sector

Namibia: Tourism• Overview

– 13.6 % of GDP and about 17.6% of total employment July 2009– Tourist arrival is increasing (mainly from SA 30% Angola36%,

and Europe (8% Germany)– Namibia Wildlife Resorts (parastatal)operates 22 tourist

resorts in protected areas– Private establishment is allowed

• GATS commitment – no restriction (MA &NT) for hotels and restaurants or travel

agencies and tour operators' services

Seychelles: Tourism• Increase in tourist arrivals was 11% in 2011• The market share Europe 75 % Africa 12 %, and Asia 10%• Hotels and other lodging

– Hotels for less than 25 room is reserved for nationals but flexibility may apply in case of JV (Tourism Investment Policy)

– Hotels & other lodging services comprising up to 10 rooms(excl. luxury villas) is reserved for domestic investors or corporate body with 50% capital by citizen( Investment Code)

– Licencing has age restrictions (above 18)– Employment quota based on net daily revenue per occupied room and subject to 5%

decrease in every 2years – G.O.P fee corresponding to applicable quota applies on concessionary monthly rate and

a flat rate beyond prescribed quota– Food serving services require establishment with a not more than 1 foreign employ

• Travel agency and tour operate: – 50% JV and residents can be licenced– Not more that 2 foreign employees of 3% of the total workforce

• Tourist guide is restricted to domestic investors

Swaziland: Tourism

• contributed 9.7% to Swaziland's GDP in 2007 • Number of tourist arrival is increasing mostly

from South Africa (65% of total visitors in 2007), followed by Mozambique (18.4%), Europe (9.6%), the United States (1.6%), and Asia (1.5%

• no barriers to foreign entry in tourism. Although there is no official taxation system for the subsector, all hotel bills include a service fee

Tanzania Restrictions• Contribute about 6% of GDP • Sector development Strategy and investment promotion identify key

areas of investment attraction which takes into account the geographic .• Restrictions:

– Foreign Establishment is allowed and must obtain a licence (tourism Activities) at a fee

– Registration required = incorporation– Only for a certain class of hotel and restaurants (national definition) differ by

geographical area– Travel Agencies and Tourist guides services reserved for nationals only– Tourist hunting and sports fishing is allowed (licenced at a fee)

• GATS Commitment=only 4* and above Hotels– Merger and acquisition is subject to approval– Acquisition of Land and foreign firms is subject to approval

Zambia: Tourism• Accounts for about 4% of Zambia’s GDP• Tourist attractions include:

– Victoria falls, vast wildlife resources, numerous national parks and game management areas, varied scenery, wilderness, diverse culture and national heritage

• tourist arrivals increased from 577,000 in 2003 to 769,000 in 2008 (with 47% from Southern Africa and 23% from Europe)

• Investment in tourism has been stifled by high costs– lack of predictability of licensing and administrative requirements to open and

operate a tourism business– WB study contended that up to 74 licences are required (although no

exhaustive list exists), which can take between six months and a year to obtain– foreign investor need to have about 12 documentations to approved from

different agencies (6 public and 12 private)

Zimbabwe: Tourism• Traditionally contributed around 6% to GDP and 10% to foreign exchange earnings• Tourism arrival is increasing Eg. 2009 (2 million) and 2010 (> 2.5 million) and it is

expected to continue to grow due to aggressive campaigns• Areas of investment include (investment Code)

– sports facilities, restaurants, conference facilities and convention centres, theme parks and tourist village centres, air services, luxury tourist coaches and safari trains, hunting safaris and community based tourism enterprises

• Restrictions:

• GATS Commitment: – Full commitment for hotels and restaurants– Travel Agencies, tour operators and Tourist Operations

• MA (M3): Tour operators operating a vehicle of over three tonnes or using more than 20 vehicles must pay an annual levy for each park

• NT (M3) : Foreign-based tour operators must pay park entry fees in foreign currency. Only locally registered Safari operators may obtain concessions to offer hunts through "leasing"; or auctions by which hunting areas are leased out.

MU GATS Com.& COMESA Offer

GATSMarket Access (Hotels)

1) Incorporated

2) None3) 49% for < 100 rooms and

100% for > 100 rooms

4) H C

National Treatment

1) Control on profit repatriation

2) None 3) FE be staffed

predominantly by Mauritians except for scarcity areas

4) HC

Market Access (Restaurants)

1) FE allowed only > Rs 10 m project

2) None3) Project must be > RS 10M

4) HC

National Treatment

1) Free repatriation of profit control

2) None 3) FE be staffed


4) HC

COMESAMarket Access (Hotels)

1) Unbound*2) None3) FE be staffed


4) HC

National Treatment

1) Unbound*2) None3) None

4) HC

Market Access (Restaurant)

1) None2) None3) FE be staffed


4) HC

National Treatment

1) None 2) None3) None

4) HC

MU GATS & COMESA Offer CtdGATS

MA (Travel Agencies)1. FE Must work through an

agency established in Mauritius

2. None 3. Rqr. bank guarantee &

licence. Clearance to be obtained from the Ministries (Tourism and Int. & Ext. Communication)

4. HC

NA (Travel Agencies)1) None 2) None3) None

4) HC

MA (Tour Operations)1. Restricted to nationals 2. None 3. Permit from the Ministries

of (Tourism & Finance) and PMO

4. HC

NT (Tour Operator)1. Restricted to Mauritian

nationals 2. None 3. Comply with the

regulations of the National Transport Authority

4. HC

COMESAMA (Travel Agencies )

1) None2) None3) None, except that

travel agent must be tied up with another approved Tourism activity

4) HC

NT (Travel Agencies)1) None 2) None3) None

4) HC

MA (Tour Operators)1) None 2) None 3) None, except that the

Value of transaction should not be < RS 5M

4) HC

NT (Tour Operators)1) None2) None 3) None

4) HC.

MU GATS & COMESA Offer Ctd.

GATSMA Tourist Guide Services1) Limited to Mauritian

nationals. Exception made for languages not spoken by Mauritians

2) None 3) Allowed only in

linguistic scarcely areas

4) HC

NT Tourist Guide Services1) Governed by

Immigration Laws

2) None 3) Governed by Income

Tax Laws

4) HC

MA Tourist Transport Operator (Car Rental)1) Limited to Mauritian

nationals only 2) None 3) Limited to Mauritian

nationals only 4) HC

NT Tourist Transport Operator (Car Rental)1) Limited to Mauritian

nationals only 2) None 3) Limited to Mauritian


COMESAMA Tourist Guide Services1) None

2) None 3) Allowed only in

linguistic scarcity areas. 4) HC

MA Tourist Guide Services1) None

2) None 3) None

4) HC

MA Tourist Transport Operator (Car Rental)

1) Unbound*

2) None 3) Limited to Mauritian


NT Tourist Transport Operator (Car Rental)1) Unbound*


Nationals only 4) HC

MU GATS Com. & COMESA offer Ctd.

GATSMA (Yacht chattering & Cruising Services)1) Reserved to Mauritian

nationals. Pleasure Craft Act 1993

2) None3) Reserved to Mauritian

nationals. Pleasure Craft Act 1993

4) HC

NT (Yacht chattering & Cruising Services)1) Reserved to Mauritian

nationals

2) None 3) Reserved to Mauritian

nationals

4) HC

MA (Tourist Duty-Free Shops)1) Limited to Mauritian

nationals2) None3) (i) Requirement of an

Export Service Certificate

(ii) Foreign participation limited to 30 %

4) HC

NT (Tourist Duty-Free Shops)1) Limited to Mauritian nationals2) None3) (i) Subject

to customs supervision

(ii) Transaction in foreign currency with tourist customers only

4) HC

COMESAMA (Yacht chattering & Cruising Services)

1) None

2) None 3) Min. inv. of Rs 10 million

or concurrent inv. in another tourism approved activity

4) HC

NT (Yacht chattering & Cruising Services)1) None

2) None 3) Ltd to Mauritian

nationals

4) HC

MA (Tourist Duty-Free Shops)1) None 2) None 3) None except Foreign

equity participation limited to 30 %

4) HC

NT (Tourist Duty-Free Shops)1) None 2) None3) None

4) HC

MU GATS & COMESA Ctd.GATS

MA Entertainment Services CPC 96194 Circus, amusement parks and similar attractions


Sporting Services CPC 96491 Recreational park and beach services


COMESA MA Entertainment Services CPC 96194 Circus, amusement parks and similar attractions

1) None2) None3) None 4) HC

Entertainment Services CPC 96194 Circus, amusement parks and similar attractions

1) None 2) None 3) None 4) HC


1) None2) None3) None

4) HC


1) None2) None 3) Services may be available

to Mauritian nationals at differential prices

4) HC

MU EPA & COMESA OfferEPA COMESA

Market Access (Hotels)

1) Unbound*2) None3) FE be staffed


4) HC

National Treatment

1) Unbound*2) None3) None

4) HC

Market Access

1) None2) None3) FE be staffed


4) HC

National Treatment


4) HC

Market Access (Hotels)

1) Unbound* 2) None 3) FE must be staffed


4) HC

National Treatment (Hotels)

1) Unbound* 2) None3) None

4) HCMarket Access (Restaurants)

1) None2) None 3) FE must be staffed


4) HC

National Treatment (Restaurants)

1) None 2) None 3) None

4) HC

MU EPA & COMESA Offer Ctd

EPA COMESAMA (Travel Agencies )1) None2) None3) None, except that

travel agent must be tied up with another approved Tourism activity

4) HC

NT (Travel Agencies)1) None 2) None 3) None

4) HC

MA (Tour Operators)1) None 2) None 3) 3) None, except that

the Value of transaction should not be < RS 5M

4) HC

NT (Tour Operators)1) None2) None 3) None

4) HC.

MA (Travel Agencies)

1) None2) None3) None, except that travel

agent must be tied up with another approved Tourism activity

4) HC

NT (Travel Agencies)


4) HC

MA (Tour Operators)1) None

2) None 3) None, except that the

Value of transaction should not be < RS 5M

4) HC

NT (Tour Operators)1) None

2) None 3) None 4) HC.

MU EPA & COMESA Ctd.

EPA COMESAMA Tourist Guide Services

1) None 2) None 3) Allowed only in


MA Tourist Guide Services


MA Tourist Transport Operator (Car Rental)

1) Unbound*



NT Tourist Transport Operator (Car Rental)

1) Unbound*


Nationals only 4) HC

MA Tourist Guides Services

1) None2) None3) Allowed only in


NT Tourist Guide Services


4) HC

MA Tourist Transport Operators (Car Rental)

1) Unbound*

2) None3) Limited to Mauritian

nationals only4) HC

MA Tourist Transport Operators (Car Rental)

1) Unbound*

2) None3) Limited to Mauritian

Nationals only4) HC

MU EPA & COMESA offerEPA

MA (Yacht chattering & Cruising Services)1) None

2) None3) Min. inv. of RS 10M or

concurrent inv. in another tourism approved activity

4) HC


2) None 3) Limited Reserved to

Mauritian nationals

4) HC

MA (Tourist Duty-Free Shops)

1) None2) None3) None except Foreign

equity participation limited to 30 per cent

4) HC

NT (Tourist Duty-Free Shops)


4) HC

COMESAMA (Yacht chattering & Cruising Services)

1) None

2) None 3) Min. inv. of Rs 10 million

or concurrent inv. in another tourism approved activity

4) HC


2) None 3) Ltd to Mauritian

nationals

4) HC

MA (Tourist Duty-Free Shops)

1) None 2) None 3) None except Foreign

equity participation limited to 30 per cent

4) HC

NT (Tourist Duty-Free Shops)1) None 2) None3) None

4) HC

MU COMESA & EPA Ctd.EPA



MA Entertainment Services CPC 96194 Circus, amusement parks and similar attractions1) None2) None3) None 4) HC

Sporting Services CPC 96491 Recreational park and beach services1) None2) None3) None

4) HC

Sporting Services CPC 96491 Recreational park and beach services1) None2) None 3) Services may be

available to Mauritian nationals at differential prices

4) HC

COMESA MA Entertainment Services CPC 96194 Circus, amusement parks and similar attractions


Entertainment Services CPC 96194 Circus, amusement parks and similar attractions




4) HC


1) None2) None 3) Services may be available

to Mauritian nationals at differential prices

4) HC

Mauritius Defensive interest

• Mode 3– Protection of Employment in a foreign establishment – Purchase of immovable properties– Minimum Capital investment (according to sub sector

requirement)• Mode 4 – Business visitors, inter-corporate transferees,

contractual services suppliers (Employees) and Independent Professionals

– Work permits

Offensive Interest

• Markets of Interest– Botswana– South Africa– Mozambique– Seychelles– Tanzania

• Review their individual GATS schedule

Conclusion

• COMESA offers is based on GATS – Some errors corrected– Identify more issues that require some

refinements– Use the same for SADC

Documents

Analysis of Tourism Markets in the region