Arusha — Just when the global financial crises or famously referred as 'credit crunch' assuming an upward trend, tourism like other sectors in Tanzania is reeling from loss of possible business this year.

Although the Tanzania Tourist Board [TTB] and Tanzania Association of Tour Operators [TATO] have lately been trying to allure travellers to the destination Tanzania, several comments have emerged from the stakeholders about the global downturns likely to turn around the targeted figures of Tanzania recording a million tourist by the year 2010.

A cross-section of interviews held in Arusha recently reveals that the air in the tourism industry is full of confusion and so is in the accommodation sector, from the tourist guest houses in Kaloleni, an Arusha suburb, to the posh hotels located in and around Arusha - all are finding ways to cope.

Tourist service oriented businesses are also being affected. Mr. Zoeb Kaley, marketing director at MMT Pharmaceuticals in Arusha, said they had seen an 80 per cent slow-down in revenue so far in the last quarter of 2008 and the beginning of the year compared with same period last year. MMT Pharmaceuticals, according to Zoeb, has embarked on cutting expenses and regrettably three of its staff members were laid off early January.

Mr. Aminiel Mawala, a hotelier, attributed the loss of business stemming out from the fact that Tanzania Destination is expensive compared with our neighbours Kenya. He went on to add that he has been told by some of his clients in the past that landing in Kenya is cheaper by almost USD500! Nearly 50% of tourists who visits Tanzania tourism spots enter through Kenya and many drive through Namanga, the Tanzania/Kenya border town.

This attribution, in his opinion, makes Destination Kenya maximize revenues on hotel services and ground transport before the tourists are driven or flown into Tanzania. A shuttle one-way to Arusha from Nairobi is nearly USD 30 making a total of USD 60 for a return ticket, and a night's stay in Nairobi is averaging at USD 75 on half board which include a late-night dinner and breakfast the following morning.

To counter falling numbers from long-haul destinations such as Europe and the United States, his hotel Moivaro Hotels, Lodges and Tented Camps is uncertain of the future of its employees. Even when he was asked by this writer on what measures his company was likely to take if the loss of business continues way through to the end of the year, he remained non-committal but he hinted on downsizing which will impact on the employees.

The Serena Car Hire and Tours Limited also shared the same concerns through the Operations director, Mr. Erwin Mpanduka who went a mile further to suggest a review of park entry fees, lowering some taxes in order to attract some additional business. "Tourism businesses need to consider this impact in the earnest time possible by lowering prices to allure thrifty holidaymakers, which may keep numbers steady and keep some gains" said Mr. Mpanduka.

The economies of the East African region are seemingly not showing the same impact experienced by western economies from the downturn, but the economies in the region is so dependent on tourism.

Tanzania's tourist season which heats up in February and March failed to record reasonable reservation figures by the end of January. The A town, which is always busy during this time with tourist cars criss-crossing the streets of Arusha have seen little of such lately.

Tourism is the pioneer industry in Tanzania and the country is earning

Until the end of 2007 Tanzania was quickly emerging as a top tourist destination in the region for travellers around the world with a wide range of outdoor, cultural and wildlife activities, attracting hordes of tourists from United Kingdom [UK] and United States [US] The two countries are the source of tourists rising numbers in both Tanzania and Kenya, and serve potentially as the main market for the region's tourism positive markets.

Analysts noted of an up to 40% of earmarked tourist related business this year may be lost because of the global financial crisis. Accordingly, Tanzania is unlikely to achieve her significant economic growth as a result of adverse effects of the global financial crisis.

News dominating the local media, in the recent past, suggests that the myriad global financial problems afflicting the G-7 and other countries have hit heavily on the world's most industrialized nations and their economies have been battered by the global financial melt down.

At this stage, attempts to stimulate tourism business largely depend on strategic and critical measures to be taken collectively between the stakeholders and the government aimed at, possibly, cutting down prices of fees, tickets and thus lowering prices of travel packages.