Analysis of Tourism Markets in the region Mauritius National Workshop on SADC Services Negotiations Restaurant 27, Port Luois 17 th 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 ), 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 (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 GATS Market Access (Hotels) 1)Incorporated 2)None 3)49% 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)None 3)Project must be > RS 10M 4)HC National Treatment 1)Free repatriation of profit control 2)None 3)FE be staffed predominantly by Mauritians except for scarcity areas 4)HC COMESA Market Access (Hotels) 1)Unbound* 2)None 3)FE be staffed predominantly by Mauritians except for scarcity areas 4)HC National Treatment 1)Unbound* 2)None 3)None 4) HC Market Access (Restaurant) 1)None 2)None 3)FE be staffed predominantly by Mauritians except for scarcity areas 4)HC National Treatment 1)None 2)None 3)None 4)HC

MU GATS & COMESA Offer Ctd GATS 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)None 3)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 COMESA MA (Travel Agencies ) 1)None 2)None 3)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)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 GATS & COMESA Offer Ctd. GATS MA Tourist Guide Services 1)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 Services 1)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 nationals only 4)HC COMESA MA Tourist Guide Services 1)None 2)None 3)Allowed only in linguistic scarcity areas. 4)HC MA Tourist Guide Services 1)None 2)None 3)None 4)HC MA Tourist Transport Operator (Car Rental) 1)Unbound* 2)None 3)Limited to Mauritian nationals only 4)HC NT Tourist Transport Operator (Car Rental) 1)Unbound* 2)None 3)Limited to Mauritian Nationals only 4)HC

MU GATS Com. & COMESA offer Ctd. GATS MA (Yacht chattering & Cruising Services) 1)Reserved to Mauritian nationals. Pleasure Craft Act )None 3)Reserved to Mauritian nationals. Pleasure Craft Act )HC NT (Yacht chattering & Cruising Services) 1)Reserved to Mauritian nationals 2)None 3)Reserved to Mauritian nationals 4)HC M A (Tourist Duty-Free Shops ) 1)Limited to Mauritian nationals 2)None 3)(i)Requirement of an Export Service Certificate (ii)Foreign participation limited to 30 % 4)HC NT (Tourist Duty-Free Shops) 1)Limited to Mauritian nationals 2)None 3)(i)Subject to customs supervision (ii)Transaction in foreign currency with tourist customers only 4)HC COMESA MA (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)None 3)None 4)HC

MU GATS & COMESA Ctd. GATS MA Entertainment Services CPC Circus, amusement parks and similar attractions MA Entertainment Services CPC Circus, amusement parks and similar attractions Sporting Services CPC Recreational park and beach services Sporting Services CPC Recreational park and beach services COMESA MA Entertainment Services CPC Circus, amusement parks and similar attractions 1)None 2)None 3)None 4)HC Entertainment Services CPC Circus, amusement parks and similar attractions 1)None 2)None 3)None 4)HC Sporting Services CPC Recreational park and beach services 1)None 2)None 3)None 4)HC Sporting Services CPC Recreational park and beach services 1)None 2)None 3)Services may be available to Mauritian nationals at differential prices 4) HC

MU EPA & COMESA Offer EPA COMESA Market Access (Hotels) 1)Unbound* 2)None 3)FE be staffed predominantly by Mauritians except for scarcity areas 4)HC National Treatment 1)Unbound* 2)None 3)None 4) HC Market Access 1)None 2)None 3)FE be staffed predominantly by Mauritians except for scarcity areas 4)HC National Treatment 1)None 2)None 3)None 4)HC Market Access (Hotels) 1)Unbound* 2)None 3)FE must be staffed predominantly by Mauritians except for scarcity areas 4)HC National Treatment (Hotels) 1)Unbound* 2)None 3)None 4)HC Market Access (Restaurants) 1)None 2)None 3)FE must be staffed predominantly by Mauritians except for scarcity areas 4)HC National Treatment (Restaurants) 1)None 2)None 3)None 4)HC

MU EPA & COMESA Offer Ctd EPACOMESA MA (Travel Agencies ) 1)None 2)None 3)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)None 2)None 3)None 4)HC. MA (Travel Agencies) 1)None 2)None 3)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)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 COMESA MA Tourist Guide Services 1)None 2)None 3)Allowed only in linguistic scarcity areas. 4)HC MA Tourist Guide Services 1)None 2)None 3)None 4)HC MA Tourist Transport Operator (Car Rental) 1)Unbound* 2)None 3)Limited to Mauritian nationals only 4)HC NT Tourist Transport Operator (Car Rental) 1)Unbound* 2)None 3)Limited to Mauritian Nationals only 4)HC MA Tourist Guides Services 1)None 2)None 3)Allowed only in linguistic scarcity areas. 4)HC NT Tourist Guide Services 1)None 2)None 3)None 4)HC MA Tourist Transport Operators (Car Rental) 1)Unbound* 2)None 3)Limited to Mauritian nationals only 4)HC MA Tourist Transport Operators (Car Rental) 1)Unbound* 2)None 3)Limited to Mauritian Nationals only 4)HC

MU EPA & COMESA offer EPA MA (Yacht chattering & Cruising Services) 1)None 2)None 3)Min. inv. of RS 10M or concurrent inv. in another tourism approved activity 4)HC NT (Yacht chattering & Cruising Services) 1)None 2)None 3)Limited Reserved to Mauritian nationals 4)HC M A (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)None 3)None 4)HC COMESA MA (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 per cent 4)HC NT (Tourist Duty-Free Shops) 1)None 2)None 3)None 4)HC

MU COMESA & EPA Ctd. EPA MA Entertainment Services CPC Circus, amusement parks and similar attractions 1)None 2)None 3)None 4)HC MA Entertainment Services CPC Circus, amusement parks and similar attractions 1)None 2)None 3)None 4)HC Sporting Services CPC Recreational park and beach services 1)None 2)None 3)None 4)HC Sporting Services CPC Recreational park and beach services 1)None 2)None 3)Services may be available to Mauritian nationals at differential prices 4) HC COMESA MA Entertainment Services CPC Circus, amusement parks and similar attractions 1)None 2)None 3)None 4)HC Entertainment Services CPC Circus, amusement parks and similar attractions 1)None 2)None 3)None 4)HC Sporting Services CPC Recreational park and beach services 1)None 2)None 3)None 4)HC Sporting Services CPC Recreational park and beach services 1)None 2)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