Two weeks ago, Uganda Wildlife Authority (UWA) successfully renewed her concessions contracts with different investors who provide lodging services in the country’s national parks.
Of the seven concessionaires who put pen to paper on the new contracts, two were new but the others have been in the business operating under poorly drawn up contracts that will now be replaced.
Uganda got herself in this situation not by her own accord but because of what happened in the past when the tourism sector went under. To revive it, government understandably gave in to the demands of the concessionaires.
Notable absentees at the signing ceremony were the Muljibhai Madhvani & Company Limited - MARASA, which runs the Mweya, Paraa and Chobe concessions in Queen Elizabeth National Park and Murchison Falls National Park respectively.
Another such concessionaire is Mr. Parvez Malik, the proprietor of Afri Tours and Travel who holds the concession for Sambiya River Lodge in the Murchison Falls National Park.
The reason that MARASA and Afri Tours and Travel were not present to sign on the dotted line that day is their refusal to take on board what was proposed to them in the review of the contracts they hold.
The key issue of contention that those who are opposing change is the reduction of the 25-mile exclusion zones in the vicinity of the lodges. The exclusion zones bar another investor from establishing a comparable structure or facility (like a hotel or lodge) within a radius of 25 miles (40 kilometers) from the existing one.
This 25-mile exclusion zone has been holding back new investments in the parks and people like MARASA are currently involved in a tough tussle with the review committee.
The bad news is that MARASA’s Chobe, Mweya and Paraa agreements have the most unfavourable clauses of any of the concessions, as they are unconstitutional because they purport to give land to MARASA.
The review team has proposed the reduction of the 25-mile exclusion zones to 5 miles but those who are resisting the move are only willing to give in to a 20-mile zone.
With tourism continuing to grow and rake in more millions than some of the traditional export commodities that Uganda is known for, UWA and indeed the government need to streamline the lodge business in the parks for the sector to fulfill its immense potential.
It is against this background that we at Business Week call on MARASA and the others to rethink their stance to bring more competition into the sector. The benefits of such competition will create a multiplier effect that will spur the industry for all, because the lodges will always be full. While the review teams are sure they will finally bring the businessmen and women to the negotiating table, it is not clear how long the fight will go on.
By Namisi
Uganda Safari News