creation of a single market in financial products and services (World Bank 2012b). The EACconsiders financial markets integration and the constitution of a single investment area as a keystep towards the future establishment of its monetary union. The Common Market Protocolrequires member States to progressively remove all restrictions on the movement of capitalbelonging to persons resident in the EAC and forbids discrimination based on the nationality orplace of residence of investors, or on the place where the capital is invested. While Kenya,Rwanda and Uganda have already opened up their capital accounts, Burundi and Tanzania arerequested to open up by 2015 to respect their obligations under the Common Market Protocol.Several regional banks, notably based in Kenya, already exploit regional opportunities, includingin Burundi, even if important regulatory and technical impediments to integration remain (WorldBank 2012b).- peace and security: the EAC has adopted in 2006 a Strategy for Regional Peace and Security inEast Africa 136 . To implement the strategy, various ongoing initiatives are promoted: theexchange of security information between partner States; the development of joint operationsand cooperation in police matters; the development of conflict early warning and resolutionmechanisms; the establishment of common mechanisms for the management of refugees andIDPs; and measures to combat illicit proliferation of small arms and light weapons, drugtrafficking, etc. As recognized in the EAC’s fourth development strategy, some progress wasachieved, but results on this agenda are still mixed overall (EAC 2011).Notwithstanding the rapid achievements of EAC integration over the last decade, the effectiveimplementation of the various initiatives described above is often limited. This has been due todomestic resistances and/or limited capacities at the regional and national levels. Nevertheless, the EACalready offers opportunities and further progress on these agendas in the future could significantlybenefit the Burundian tourism sector, by harnessing regional goods like infrastructure, and by improvingits visibility and accessibility for regional and international tourists. As is clearly stated in the SNDDT,the EAC represents “important regional cooperation possibilities, in infrastructure, legislation, humanresources or marketing”.Burundi can piggyback on the higher maturity of tourism in its EAC neighbors. Given its isolation,small size and limited number of attractions, it will be hard for Burundi by itself to attract numeroustourists for long stays. This is not necessarily a binding constraint. For example, the extension ofThailand’s tourism packages launched the initial growth of the sector in Lao PDR and Cambodia (UNDP2011), and a large majority of tourists visiting Mozambique arrive from South Africa (USAID 2004).Likewise, most leisure tourists visit Rwanda as part of a multi-country itinerary and do not yet considerit as a stand-alone destination. In 2009, the most frequently cited length of stay by international touristsin this country was four days (Nielsen and Spenceley 2011). The integration in East African circuits andthe connection with well-known tourism “brands” such as Kenya is therefore a promising option forBurundi, as recognized in the SNDDT. Doing so will require convincing more tour operators to addBurundi to their circuits 137 . To do this, Burundi will need to exploit complementarities with other EACcountries by highlighting its comparative advantages (potentially leisure tourism around LakeTanganyika, francophone culture and linkages to francophone source markets) and by developing theniche activities described above (eco-tourism, community-based tourism with coffee-growers, etc.), aswell as by engaging in regional cooperation initiatives in the areas discussed above. Burundi could alsoseek direct cooperation with other East African countries to develop common circuits or jointly managespecific assets, following an approach already pioneered in East and Southern Africa (box 7.4).136 www.eac.int/security137 This is already happening to some degree: e.g. the tour operator Eos Visions, recently established andspecialized in educational travels in East Africa for professional/academic/advocacy groups (www.eosburundi.com).146 / 153
Box 7.4: Examples of regional conservation and tourism initiatives in Southern and East AfricaSouthern Africa: Since 2000, SADC member States have been cooperating on common conservationand tourism related issues through the establishment of transfrontier conservation areas (TFCAs),adjoining protected areas in two or more countries. Seven TFCAs are already showcased to tourists andinvestors through a common brand, “Boundless Southern Africa”. Together, these parks involve ninecountries and up to five for a single park in the case of the Kavango Zambezi TFCA (Angola, Botswana,Namibia, Zambia, Zimbabwe). Moreover, several other TFCAs are at a various stages of development.While essentially a government-led initiative, the establishment of TFCAs has been supported bynumerous stakeholders, including international donors, NGOs, the private sector or foundations.East Africa: One notable example is the cooperation between the authorities in the DRC, Rwanda andUganda for the conservation and management of their trans-border forests in the Virunga ConservationArea, which covers the Parc National des Virunga (DRC), the Volcanoes National Park (Rwanda) andthe Mgahinga Gorilla National Park (Uganda). Collaboration between national agencies was formalizedby the establishment of a transboundary strategic plan and memorandum of understanding. Various jointinitiatives are carried out, notably concerning the harmonization of the rules governing gorilla tourism.Sources: www.boundlessa.com ; www.peaceparks.org ; www.igcp.orgIntegrating into the regional market will require attracting FDI, especially from the actors whoare active in the EAC region. Tourism operators in East Africa already exploit the regional dimension:for example, Kenya is one of the main sources of tourism FDI in Uganda, and more than 20 percent ofhotels in Kenya do business in the region through hotel chains and branches of tour operators based inTanzania (UNCTAD 2008). Moreover, the UNCTAD’s study suggests that firms with some degree offoreign ownership are more likely to do business in the region than wholly local firms. The experience ofother East and Southern African countries shows that, FDI in tourism i) has been a significant source ofinvestment capital in the tourism sector, especially where tourism was emphasized as a new sector ofgrowth ii) has enhanced service delivery and supply capacity (especially accommodation provided byinternational hotel chains), hence contributing to a sustained increase in both arrivals and revenues frominternational tourism; and iii) can contribute to raising domestic tourism sectors’ productivity andcompetitiveness by transferring skills, technology and standards, especially in countries relatively new totourism 138 . Burundi could learn from neighbors’ experience in this regard. For example, to foster theprivate sector’s interest, the Rwandan government organized familiarization tours for internationalinvestors and tour operators, during which the Minister of Commerce and Rwandan tourism officereceived the delegates to demonstrate the importance of their visit (Nielsen and Spenceley 2011).Importantly, Burundi’s new Investment Promotion Agency (API) will have a role to play to promote FDIin tourism, in coordination with the ONT.138 See the UNCTAD’s (2008) detailed analysis of the role and developmental impact of FDI in the tourism sector,with case studies of several East and Southern African countries.147 / 153
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