Africa: Tanzanian Tour Operators Call for One Year Delay on Mandatory Travel Insurance for Foreign Tourists to Avoid Booking Disruptions
Tour operators in Tanzania are urging the government to suspend the newly introduced mandatory travel insurance for foreign tourists for at least one year, warning that the policy could hurt tourism and threaten their businesses.
According to theeastafrican, the new Financial Bill proposes a $44 per person travel insurance for all foreign visitors, including tourists.
The chairperson of the Tanzania Association of Tour Operators (Tato), Willy Chambulo, said while the development has been well received, its execution needs at least 12 months to allow for adjustments.
“We already have tourists who had booked their journeys to Tanzania and we can’t surprise them with the new insurance fees,” Mr Chambulo said.
“This comes as a surprise to tour operators in the country, who now need time to relay the information to clients,” said the Tato boss, noting that many of the decisions being taken by the government hardly involve stakeholders.
“We request that tourists should not be disturbed at the moment – they should be given time to adapt to the new changes,” he said.
The $44 mandatory travel insurance fee will remain valid for 62 days upon being purchased. But the fee will not be charged on people from the eight East African Community member states, and it is possible that even nationals from the South African Development Community will be exempted.
This new insurance for foreigners, possibly to be issued through the National Insurance Company and its agents, may tip the scales on the expenses that tourists will be subjected to during visits to Tanzania.
The explanation given is that the money will serve as a caution fee in case of emergency, and covers medical, accident, baggage loss or damage and other incidents that will call for compensation to the affected visitors.
But tour operators in Arusha argue that many visitors are usually already insured by their respective firms and forcing them to buy another policy may add costs, which could impact the industry.
The government has announced that it will launch an online portal to allow travellers to purchase insurance.
This policy is, however, not new. The Zanzibar Isles started charging foreigners the same amount for travel insurance cover from October 2024. Zanzibar Insurance Corporation sells the policy.
Children pay $22 while infants are exempted.
Zanzibar has so far collected $6.1 million from the policy, according to the Deputy Minister of Finance and Planning Juma Makungu Juma.