Government tells powerful hunting lobby: No way back on fees

-Minister shoots down uproar over 500 per cent hike

THISDAY REPORTER
Dar es Salaam

THE government has flatly rejected pressure from the country’s powerful hunting lobby for a reversal of its recent decision to significantly hike various hunting block and trophy fees.

This development comes amid reports of various well-connected and influential holders of hunting block licences and concessions vigorously lobbying the government to rethink its move to increase the fees.

Sources have told THISDAY that the hunting firms have been trying to call in favours from their connections in government circles, while also waging a parallel media campaign in an all-out effort to sway public officials.

The Minister for Natural Resources and Tourism, Prof. Jumanne Maghembe, confirmed yesterday that the government has been under considerable pressure from industry stakeholders to reverse its decision on new fees effective this (2007/08) financial year.

He, however, dismissed arguments offered by some local hunting companies that the fee hikes would make Tanzania a less attractive destination for tourists in the region.

’’Resisting change is a common trait for many human beings. But there is no argument that can convince the government otherwise,’’ Prof. Maghembe told THISDAY in an interview.

He added: ’’Actually, despite the recent fee increase, we still have some of the lowest rates of hunting fees in East and Central Africa.’’

Tabling the ministry’s 2007/08 budget estimates in the National Assembly last month, Prof. Maghembe announced tough, new measures aimed at strengthening controls over dwindling wildlife resources and boosting the hunting industry’s overall contribution to the country’s national economic output or Gross Domestic Product (GDP).

The minister said the revised game hunting fees were actually in line with prevailing rates in the rest of the 14-member states of the Southern African Development Community (SADC).

Under the new structure, the trophy fee for hunting a lion has been raised to $12,000 (approx. 15.6m/-), up from just $2,500 (approx. 3.25m/-).

Furthermore, hunters now have to pay $15,000 (approx. 19.5m/-) to kill an elephant in Tanzania from the previous fee of $5,000 (approx. 6.5m/-).

Also revised upwards were licence fees for lucrative hunting blocks, from a mere $10,000 (approx. 13m/-) to $50,000 (approx. 65m/-).

But in the immediate aftermath of the government’s announcement, hunting block owners came up in arms against the new fee structure, describing the 500 per cent fee increase as outrageous.

An adamant Prof. Maghembe insisted yesterday that even with the fee increase, the hunting industry would still remain a ’’very lucrative business.’’

’’What are they (hunting firms) complaining about?’’ he queried, asserting that hunting companies were actually using the blocks ’’almost free of charge.’’

The minister cited a typical hunting block in the Selous Game Reserve covering an area of 1,000 square metres, which is equivalent to 100,000 hectares.

’’This means that at our new rates of $50,000, we are actually charging $0.5 per hectare...this is almost free of charge,’’ he said.

The local tourist hunting industry has long been one of the areas considered particularly prone to serious corruption.

The new government measures come on the back of widespread reports that some well-connected individuals have been monopolising licences for hunting blocks, which they covertly sublease to foreign hunting companies for exorbitant fees.

Tanzania has over 130 hunting concessions covering an area in excess of 200,000 square kilometres, that are leased to hunting outfitters licensed to conduct tourist hunting.

More than 60 species of animals in the country can be hunted on a tourist-hunting licence.

Records show the ministry’s wildlife division currently earns an average annual income of just $10m (approx. 12.5bn/-) from its concessions.

However, government officials say President Jakaya Kikwete is keen to see the hunting industry making a ’’more realistic contribution to national economic growth.’’

Pure and simple greed!!!!!!

Not that I had any short term plans of hutning here, but now certainly won't be able to afforf this country.

quote:

Originally posted by bisonhunter1:
Pure and simple greed!!!!!!

Not that I had any short term plans of hutning here, but now certainly won't be able to afforf this country.

I am afraid this is not quite correct.

I have spoken to people in Tanzania, and they have always brought up the subject of hunting blocks being sub-leased at incredibly high prices.

As mentioned in the statement below.

"The new government measures come on the back of widespread reports that some well-connected individuals have been monopolising licences for hunting blocks, which they covertly sublease to foreign hunting companies for exorbitant fees."

Apart from the increase on the trophies fees of some animals, like elephant and lion. And the government making them retro-actively applied. I don't think the hunting block fees are unreasonable at all.

Taking into consideration the amount of money those who are connected and have leases are selling those lease at to others.

Wow....some hefty mark-ups in this business.
I wonder who manged to get a Lion and paid a trophy fee of $2,500?
Clearly there are a whole load of costs to be taken into account, but I would have thought that they were in the daily rate.

I fully admit (and expect) that I am going to have my ignorance of the system exposed...so expose away!

Saeed,

I am in the process of canceling my 2008 Selous safari. I was after cats and the trophy fee increases are just not acceptable.

What I can't understand is why Tanzania doesn't have an open auction process for concessions and allow foreign companies to bid.

With a five year lease and a rotating auction schedule so at least a few concessions come up for auction every year Tanzania would get the fair market value of the lease.

With a fixed price of $50K some concessions may be under-priced while others may be over-priced. Tanzania will still lose revenue on under-priced concessions.

Tanzania needs to fix it’s tender process, until it does they will continue to have problems.

Best regards;
Brett

The Tanzanian government is simply seeking to get for its resources whatever the market will bear. Is anyone any different? I'm reluctant to call a third-world country in which most of the citizens live at subsistance levels "greedy". Whether they are overestimating the market is another question.

The issue that 98% of us have to deal with is that there is a significant number of individuals to whom the cost of hunting in Tanzania is irrelevant, no matter how high it is priced. The government is simply seeking the highest price level at which 100% of their "product" can be sold. The fact that someone who mearly has a six-figure annual income is priced out of the market does not (and should not) concern them until and unless they run out of seven-figure individuals to whom they can sell their hunting.

Why does any product cost "too much"? Because some idiot is willing to pay that for it. Convince the multi-millionaire hunters who go to Tanzania that they shouldn't pay that much and the problem will solve itself.

I personally hope that the Tanzanian government finds that they have greatly overestimated the market for their hunting and find that their rather exhorbitant fees are generating less, rather than more, revenue. That's the only way that the "rich", as opposed to the "super rich" will be able to hunt there.

For me, if this is true, it will be GOODBYE Tanzania!

Interesting article but far from the final word as far as Africa works...maybe, maybe not.

I do find their tendering process to be strange. This is why blocks are subleased, some of them multiple times. In my opinion that is a serious problem. In what way, does that help the process? Of course it doesn't and more than any other factor that is why Tanzania is so expensive. Do you disagree?

well i'm happy i canceled for next year, at least i could, but i feel sorry for those who are getting stuck. doesn't seem fair, but then again greed never does

On page 2 of the same newspaper, they claim that 17 Masai were abducted by a spaceship and returned without their toenails.

(The previous statement is not true, but since you read it on the internet, it must be true right?)

I refuse to get my news from a liberal African rag.

Let's wait this out and see what really happens.

"Let's wait this out and see what really happens."

That brings up two issues. First, the new rates are the law. That has already happened. Will they be rescinded for 2007? I hope so, but since I'm leaving in 18 days for Tanzania, I have to decide now.... which brings up the second point.

We have had Don Causey tell us several times that "next week" everything will be o.k. As the "next weeks" come and go, my safari date approaches I have had to make decisions facing the fact that I have little to do with changing anything. I planned for the worst scenario, counted my pennies and discovered that I could somewhat afford it since the buffalo fees didn't go up dramatically.... but $25,000 more for a lion, elephant and leopard... I'm afraid that I'd be shooting doves in a peanut field in South Georgia, which ain't so bad, come to think about it.

I am with Wendell, even if the above doesn't sound like it. Hang in there as long as your can... at least until it gets to the point that you're obsessing over it and start kicking your dog or something.

Half the fun of safari is the anticipation... and while it may well turn out o.k., I'm sorely pissed at the Professor for turning great anticipation into great agonizing... My solution was to plan for the worst and be happy about any positive change. Just my simple-minded way to deal with someone trying to ruin my safari.

We need a "smiley" with a middle finger up for the Professor.

Wendel you are absolutely right. I almost cancelled my 7 day buff hunt in late july based upon what I read on the internet.

I thought to myself what I'd tell my PH and outfitter if I cancelled; that I cancelled based on what I read on an internet chat room or on the hunt report.

Granted I only had a 7 day hunt but geez for the love of pete talk to you ph or his agent before you cancel don't go 2nd or 3rd hand reports you read on the internet.

If I would have cancelled I would have missed out on the best time of my life.

In 2005 (last year for which data is available), 303,817 Amercians filed tax returns showing $1,000,000 or more in annual taxable income. Assume that there is a roughly equal 300,000 Europeans, Middle Easterners, and Asians who have million+ annual incomes, then assume that among this roughly 600,000 population that 2% are hunters. This means that there are 12,000 potential hunters to whom a $25,000 trophy fee is insignificant.

Just like a work-a-day Joe who makes his living turning a wrench underneath a city maintenance truck is priced out of any decent Texas deer lease, most of us here on AR are being priced out of many African countries. For better or worse, it's called Free Enterprise. It seems we've taught those "greedy liberal socialists" in third world countries way too much for our own good.

Folks,

Check out my post today. "LATEST FROM THE HUNITNG REPORT". This thing is far from over.

Mark

Stonecreek:

I disagree with you somewhat. As to future increases, Tanzania can do any darn thing they wish. Unfortunately for PH's, booking agents and clients, the increase was confirmed retroactively by parliment. No consideration was given that this was after hunters had paid final deposits, bought tickets and some were even in the field. That sucks and "sucks" is the mildest work that I can think of for such behavior calculated to screw up people of good faith.

Ernest,

Whatever you do, don't shoot an undersized ele! I was told that anyone that has this year (unless the new trophy fee schedule is rescinded) will be liable for the new trophy fee ($15000) and a penalty of 2x the trophy fee ($30000). $45,000 is a big boo-boo!!

Cheers,
Canuck

quote:

Originally posted by JudgeG:
Stonecreek:

I disagree with you somewhat. As to future increases, Tanzania can do any darn thing the wish. Unfortunately for PH's, booking agents and clients, the increase was confirmed retroactively by parliment. No consideration was given that this was after hunters had paid final deposits, bought tickets and some were even in the field. That sucks and "sucks" is the mildest work that I can think of for such behavior calculated to

No argument there. Retroactive fee increases are essentially the same thing as reneging in a contractural agreement. It is, of course, the future fees to which I refer.

A $10.000 increase in trophy fees without any warning is total crap! I would not trust any African officials to look after your best interest. Pull the trigger be ready to pay! A year from now were going to hear, Sorry its totally out of my control you knew about the increase, please send $10.000 if you want your trophies! Its total CRAP!

Damn!

I do understand the desire of the Tanzanian government to optimize their return from their resources. Sad that it impacts hunters already having made deposits and now faced with a difficult if not impossible choice.

Their new pricing structure takes me out of their pool of potential customers for sure. I hope they find that they get more by controlling subleasing abuse and reducing the trophy fees so that their total number of hunters is larger than it will be under the now current pricing structure.

Glad I got to go once. Sad I won't be able to go there again. Wondering if there will be a place in Africa that I can afford that is also safe.

Damn!

quote:

Half the fun of safari is the anticipation... and while it may well turn out o.k., I'm sorely pissed at the Professor for turning great anticipation into great agonizing... My solution was to plan for the worst and be happy about any positive change. Just my simple-minded way to deal with someone trying to ruin my safari.

Yeah Judge, that's all we can do. For those sitting on the sidelines on this deal it is one thing but, for those of us that have had money deposited for almost two years and have the rules of the game changed after the cards are dealt it sucks big time! We'll just have to go and shoot more selectively and be glad we got to go at all.

quote:

Originally posted by Stonecreek:
The fact that someone who mearly has a six-figure annual income is priced out of the market does not (and should not) concern them until and unless they run out of seven-figure individuals to whom they can sell their hunting.

Being just barely in the former and not anywhere near the latter category I have news for the good Minister. I had already dismissed Tanzania as a safari destination at the OLD rates! Maybe there are enough 7 figure or more guys out there but I fear the loss of the game management infrastructure, fragile as it seems to be in any African country with the result of diminished wildlife populations.....and yes, I'm sorry I'll never get to see Tanzania.
Gary

Damm I'm glad I went to the Selous earlier this very month!
I had a grand time and like Sidnye, with whom I traded PMs as we were going different blocks in an identical time frame, I contacted my operators ahead of time and was able to take deep breaths on my flight over.
I'd like to return to the Selous and may well but not for my lion hunt if the rate hikes stand.

Tanzania has always been expensive and you can count on it being more expensive after this fiasco is settled. The only question is how much more expensive will it be?

We'll find out when the fat lady sings and she hasn't sung yet.

It is sad, but also business. Why sell 100 widgets at $500 when you can sell 20 of them at $2500. Same net.... except, I think they will be missing all of the other money spent while in country. Hotels, taxis, curios, charters, meals, etc.

I hunted buffalo in Zambia in 2000. The price for a 10 day safari with plains game was 6900 us. After the close and reopen things changed for the worse. Its off the list for buffalo now as is Botswana for obvious reasons. Now the same might be true for Tanzania.

10 day buff and PG for 6900 in Zambia sounds great to me...and it wasn't that long ago sad to say.

a 2 buff 7 day trip to the outfit I used in the Selous $7500 plus TF on second buff and any PG TFs .
Included was ALL gov't fees, charter to camp, 1st buff TF, 1 gun permit, food,drinks
That trip for '08 is $7700 plus the TF on the 2nd buff,etc. Can be upgraded to 10,14 days @ $750/day more
To me that's still a pretty good deal for a guy whom wants to hunt buffalo and wants some PG not available elsewhere such as Nyassa wildabeast and Lickenstein hartebeast

I was afraid this article would end up on the net.....

When i saw it, I called the Sec Gen of TAHOA to get his comments. He assured me that as a "gossip" newspaper, This day's article is far from the truth. Although the Minister was quoted verbatum, it does not necessarily mean much coming from that newspaper - according to the Sec Gen. The Minister is on an election campaign and is saying things that he thinks will win him votes amongst his peers. Furthermore, the article was written based on info that came out when the fee hike was first announced and "refreshed" to make it sound as "current" news. Essentially, it is "old data" being recycled several weeks later to make it sound as "new data"

As difficults as it may sound, patience is all that one can offer to prospective hunters.....

With all there is to worry about concerning our upcoming safari oct 3 07 in Tanzania, I never ever considered spaceships and toenail loss! What is next?

I needed a laugh. Thanks.