Promoter: Tanzanian Investment Centre (TIC)
Client: Cordial Tours and Travel Services Limited (CTTS). CTTS's core business is tour operation and travel service provider.
Proposed project: Expansion project
Description: CTTS plans to expand its tours and travel operations by investing in a new fleet of safari vehicles, and construction of four new tourist lodges. The proposed plans also include construction of apartments and recreational facilities at Mbezi beach in the outskirts of Dar es Salaam.
Project cost and financing: The estimated project cost is US$4.3 million, of which 74% would be financed by debt and the rest by equity. The project has a before tax IRR of 42.4%.
Incentives:
CTTS has a TIC certificate of incentives which provides the following tax incentives and benefits to the potential investor.
Fiscal Incentives
• Import duty and VAT exemption on project/capital deemed capital goods
• Import duty draw back scheme
Non-fiscal incentives
• Immigration quota of up to 5 people
• Guaranteed transfer of :-
1. Net profits or dividends of the investment
2. Payment in respect of foreign loans
3. Remittance of proceeds net of all taxes and other obligations
4. Royalties fees and other charges
5. Payment of emolument and other benefits to foreign personnel
A Brief sector overview: Tanzania's tourism earnings for 2008 are estimated at US$1.3 billion from about 840,000 visitors. The sector employs around 200,000 people directly and accounts for around a quarter of the country’s total foreign exchange earnings. It also supports allied industries like food services and transport.
Tanzania aims to earn $1.5 billion annually by attracting one million tourists per year by 2010. The global financial crisis has however had some impact on the sector, forcing the state-run marketing board, the Tanzania Tourist Board, to cut its projection of the 2009 tourist numbers.
Product offer: Tourists visit Tanzania to enjoy the beaches on its eastern coastline and the Zanzibar archipelago, its national parks such as the Selous in the southeast and the Serengeti in the north, and to climb Mount Kilimanjaro.
Market: It’s major source of visitors include Britain and
the United States. Other countries include Germany, Italy, France, Spain, South Africa and Kenya. The tourist board is now seeking new markets in Russia, the Czech Republic, Poland as well as India, China, Australia, and other African countries.
For further information on this investment contact the Tanzania Investment Centre.
Key contact: Raymond Mbilinyi
Director, Investment Promotion
Email: rmbilinyi@tic.co.tz
