The Need to Protect Local Businesses has become more Important than ever Before
Protectionism is what I have been asking for. Tanzania local businesses are entitled to some sort of protection for more competitive advantages than foreign investors.Why? because (1) they are the indigenous in their home country (2) Like in the U.S, they must enjoy some legislations that encourage local business to survive in competitive market while gaining local market share (3) the economy of Tanzania should not only be comprised of foreign investors (minorities) (4) local businesses must also benefit from the free market economy and its integration at the global level (5) the country as whole must benefit from foreign investors by establishing conducive investment environment while making foreign investors liable to more taxation, local labor laws but not more competitive opportunities and advantages than local businesses (6) to safeguard sensitive government information, government contracts must be contracted by local businesses (7) the government should emphasis on training on marketing and strategic management for sustainable competitive advantage to local businesses and government owned companies like TANESCO, PPF, NSSF, and Tourism industry for core competency in this era of global economy and market integration.
We will be achieving one of these gradually since we have already started heading that direction as you can see on this article below:
Tour operators welcome new tourism legislation
2007-10-30 09:41:49 By Adam Ihucha, Arusha
The government has won many hearts of local tour operators for introducing legislation to restrict foreigners to involve in tourism transactions. In their comments made separately to this paper, the operators said the proposed new legislation anticipated to be in force by early next year was much overdue. ``Now we are heading to the right direction, in fact the move by the government is highly appreciated,`` said Firoz Suleiman, Director of Sunny Safaris. He proposed that taxes accruing from the tourism industry should be paid according to the law of the land. The Managing Director of Golden Rose Travel and Tours Company, Walter Maeda commended the Government for eventually acting in a ``better late than never`` style. He said neighbouring Kenya`s tourism authority barred foreigners from dealing with all tourism related undertakings long ago. ``The secret behind the flourishing tourism business in Kenya is that the industry is fully run by indigenous people,`` he remarked. Maeda says until the new legislation comes into force,``Tanzania policy allows foreigners to invest in petty businesses such as restaurants and guest houses and yet be entitled with the title, investor,`` Maeda noted. Armstrong Nyaka of Jackis Tours was happy that at last the government had wakened up and seen the way it has been loosing a large chunks of cash accrued from the tourism trade. ``A lot of money has been secretly siphoned out of the country by foreign tour and travel operators who maintain offices in Tanzania and abroad at the expense of the nation and its people,`` he said. Carlos Da Silva Verela of African Rhino Safaris and Ecotourism Africa said the majority of small indigenous investors in tourism used to face stiff competition brought by the foreign investors.
SOURCE: Guardian
We will be achieving one of these gradually since we have already started heading that direction as you can see on this article below:
Tour operators welcome new tourism legislation
2007-10-30 09:41:49 By Adam Ihucha, Arusha
The government has won many hearts of local tour operators for introducing legislation to restrict foreigners to involve in tourism transactions. In their comments made separately to this paper, the operators said the proposed new legislation anticipated to be in force by early next year was much overdue. ``Now we are heading to the right direction, in fact the move by the government is highly appreciated,`` said Firoz Suleiman, Director of Sunny Safaris. He proposed that taxes accruing from the tourism industry should be paid according to the law of the land. The Managing Director of Golden Rose Travel and Tours Company, Walter Maeda commended the Government for eventually acting in a ``better late than never`` style. He said neighbouring Kenya`s tourism authority barred foreigners from dealing with all tourism related undertakings long ago. ``The secret behind the flourishing tourism business in Kenya is that the industry is fully run by indigenous people,`` he remarked. Maeda says until the new legislation comes into force,``Tanzania policy allows foreigners to invest in petty businesses such as restaurants and guest houses and yet be entitled with the title, investor,`` Maeda noted. Armstrong Nyaka of Jackis Tours was happy that at last the government had wakened up and seen the way it has been loosing a large chunks of cash accrued from the tourism trade. ``A lot of money has been secretly siphoned out of the country by foreign tour and travel operators who maintain offices in Tanzania and abroad at the expense of the nation and its people,`` he said. Carlos Da Silva Verela of African Rhino Safaris and Ecotourism Africa said the majority of small indigenous investors in tourism used to face stiff competition brought by the foreign investors.
SOURCE: Guardian
posted by TANZANIA AND THE WORLD ECONOMY | 9:09 AM
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