Coordinating regulatory agencies for improved tourism policy in Tanzania

Abstract

PurposeThe purpose of this paper is to explore the institutional challenges of coordinating regulatory agencies and the costs associated with compliance requirements in Tanzania’s tourist industry.Design/methodology/approachThis paper is based on qualitative research conducted in the northern tourism circuit of Tanzania. Data were generated through semi-structured interviews and focus group discussions with owner-managers of tourism enterprises, heads of regulatory agencies and leaders of business associations (n=60). The findings were analysed through triangulating the data from various sources to establish emerging themes and patterns in accordance with the theoretical underpinnings and research objectives.FindingsThe findings show that tourism enterprises are governed by a multitude of national, sub-national and sectoral institutions mandated to impose several taxes, fees and levies on enterprises. As a result, tourism enterprises are required to obtain duplicate licences and are subjected to uncoordinated inspections. The poor treatment by regulatory agencies, the unclear basis for estimating taxes and levies, inadequate tax education and closure of businesses were also reported as key regulatory challenges. Most challenges emerge from agentification of the public sector and the lack of a legal framework in which to formally facilitate coordination and information sharing amongst government agencies.Practical implicationsThe paper proposes streamlining the functions of divergent institutions governing the industry by increasing intergovernmental coordination through delegating some functions, sharing information and enforcing formal inter-ministerial and cross-government consultation structures.Originality/valueThis paper adds value to previous regulatory assessments by empirically analysing the specific sector and showing how the principal–agent relationship for the public sector can be improved through enforcing coordination of the multiple agencies governing the tourist industry.