Uganda news update – CHOGM sins continue to haunt the perpetrators

CHOGM SINS CONTINUE TO HAUNT THE PERPETRATORS

The scandal is simply not going away and CHOGM, once a darling word to boost hotel capacity and create infrastructure along the Entebbe to Kampala corridor of the greater metropolitan area, has become synonymous with corruption, police investigations and prosecutions by the Inspector General of Government.

The latest media reports again centre around the former Minister of State for Tourism, Serapio Rukundo, whose decision to take all the proposals made by the national Hotel and Tourism Training Institute towards training for the summit and capacity building and then engaged foreign partners at a multiple of the projected ‘in house’ cost had already at the time caused furious arguments, before it was even known that the ‘training’ proved useless and ineffective for the purpose. Sidestepping and ‘cold storing’ HTTI, located at the Crested Crane Hotel in Jinja, also damaged the long term future of the institute as all capacity building measures proposed in the comprehensive document submitted to government by the HTTI principal and board at the time had outlined the benefits of training both at the institution as well as having ‘mobile’ training units dispatched into the CHOGM hotels to teach ‘on site’ to workers who could not be spared by their employers. A Ugandan registered ‘human resource’ company, participating in the alleged swindle, also disappeared from the scene, as did the owners, when questions were first raised at committee levels of the last parliament and it became clear that there was a prima facie case building up for taking the matter to court.

However, while still in office Mr. Rukundo managed to fend off such action, but when losing his parliamentary seat in Kabale and being retired from cabinet, the tables were finally turned.

It is understood that CID officers are now actively searching for documentary evidence about the sequence of events how this alleged swindle happened, how the ‘partners’ were selected in a non-competitive and non-bidding fashion, why a government owned institution which in fact had developed all the scoping documents and draft curricula in detail were pushed aside and what if any benefits came to those who were meant to be trained. As it is coming to four years in November since CHOGM was held in Uganda, a high profile event which benefitted the country greatly in terms of exposure and publicity abroad, action finally seems to be taken against those whom the public accounts committee of the last parliament pin pointed at the time, only to be overruled in the plenary session which gave a broad absolution to all at the time. Yet it seems, the office of the IGG, already prosecuting the former Vice President, clearly thinks that this ‘absolution’ was worthless and is building up case files before issuing arrest warrants and bringing the culprits to justice.

Watch this space, as this unsavory saga continues. 

 

Tanzania aviation news update – Swissport profits nearly double

SWISSPORT PROFITS PROMPT CALLS FOR GREATER COMPETITION

The announcement by Swissport last week of a 44 percent rise in profits for the first half of their financial year to approximately 2.6 million US Dollars has swiftly brought critics to the scene, demanding that new licenses be issued to applicants wanting to provide ground handling services at Dar es Salaam and Kilimanjaro International Airports. ‘This is evidence that the market is being milked dry by a monopolist’ said a regular source from Tanzania’s aviation industry before adding ‘These profits come on the back of very high fees. Look at Entebbe, it is the same thing, one big monopolist and a much smaller competitor with no real impact on anything. Only in Nairobi is there real competition and charges for handling are a lot lower than what we must pay here. We often wonder what deal there is between the Tanzania Civil Aviation, Tanzania Airport Authority and Swissport to keep competition out of business for so long’.

Shareholders of Swissport however are said to be smiling – the Tanzanian government holds a 49 percent minority share in the company which may explain their reluctance to have a competitor licensed – as the dividend proposed is twice that of 2010.

Watch this space. 

Uganda news update – Inflation reaches 18 year high with 18.7 percent for July

STATISTICS BUREAU DROPS INFLATION BOMBSHELL

Figures just released by the Uganda Bureau of Statistics, in conjunction with the Bank of Uganda put the annual inflation trend for the month of July 2011 now at 18.7 percent, bringing it to an 18 year high with no end in sight.

Inflation even in Kenya has now gone above 15 percent but in Uganda it is also combined with the lowest level of the value of the Uganda Shilling, which has last weekend fallen to below the 2.800 mark versus the US Dollar. Across the region have the effects of high international fuel prices driven inflation and drought has affected harvests to the point of having the UN declare a famine in parts of the Horn of Africa and the Eastern African region. This spells badly for already hard hit consumers, as increased fuel prices translate instantly into even higher food prices, a crucial element in the monthly spending budget by ordinary people.

Political attempts to belittle the problem have only fuelled anger and given the leading opposition figures fresh impetus, who have already vowed to resume their ‘walk to work’ protests which a few months ago caused major disruption to life in and around Kampala as well as key municipal centres across the country. Said a leading safari operator when questioned on the impact of the inflation on his business: ‘We quote in US Dollars and Euros, not in Uganda Shillings. So our rates are stable in foreign currency but we are still faced with all local cost escalating month by month. Fuel, food inputs, spare parts have all increased so whatever we get more for our dollars by higher exchange rates is also being consumed by higher prices. New equipment, new vehicles for instance, need to be paid in hard currency. We are lucky to earn hard currency but for others they need to find the shillings to make up for the gap now. But our main problem for Uganda tourism is marketing. Our neighbours are doing more, spending more and are united between private and public sector. In Kenya especially the sector associations are drivers of dialogue and development, but here we lack that sort of structure. In Tanzania the hotel association is issue driven, here they go for owners individual objectives and interests. In Uganda we need to come together as a whole group and give government our principle demands and tell them what it will cost them to propel tourism ahead. Our sector has a great deal of potential but for 20 years we have not fully exploited it. That should change now that we have our own ministry again. But let me also say that political events have not helped and if opposition wants to walk again the international TV stations will show our own riots and not those in London. That puts potential visitors off and travel warnings then also play a part. Inflation here  in Uganda combines with power outages, high cost of production because of long access from the sea ports and people find it hard to make ends meet. Government has not come forward to show positive action and compassion, they have confrontations with traders, oil companies and now we hear a section of Mabira Forest is being given away again. I think we are heading for some very tough times now’.

Sentiments voiced across society and visible in social networks where in particular on Twitter and Facebook the ‘Uganda networks’ are buzzing with comments about inflation, the economic situation and of course everyone’s prime topic, POLITICS.

Adds this correspondent in closing: there is still no time like the present to visit the ‘Pearl of Africa’ as part of a safari to Eastern Africa. 

Kenya hospitality news update – Red Cross invests in hotel sector to generate income

KENYA RED CROSS VENTURES INTO THE HOSPITALITY SECTOR

When last week the MP for Wajir South, one Muhammed Sirat, was thrown out of parliament in Nairobi by the Speaker, it became wider public knowledge that the Kenya Red Cross Society was in the business of investing in sustainable and viable projects to secure a regular income towards its many charitable activities. Sirat, called a ‘brainless attention seeker’ by one of his colleagues on condition of anonymity, had tried to smear the Kenya Red Cross and Red Crescent Society by attempting to accuse them of misusing donations to build a business empire, before then accusing other MP’s of trying to silence him, prompting his ejection from the chamber for his misconduct.

Fact is that the Kenya Red Cross and Red Crescent Society depends presently on an overwhelming scale on donations by well wishers and from international organizations, to carry out their work for emergency relief services, clinics and towards their public health programmes. Donations however depend not only on the good will of givers but are like much else subject to economic cycles. Inflation in Kenya presently runs at over 15 percent according to the latest figures available, fuel prices are as of today up again and the economic outlook remains clouded inspite of positive underlying factors. Hence have strategists within and close to the Red Cross and Red Crescent Society in Kenya decided to enter into business ventures, namely the hospitality sector, which over the years has persistently paid dividends and earned returns. While these businesses itself are taxable, the income generated for the Red Cross will go towards financing their humanitarian programmes, opening a second axis of funding much needed considering the demand on the Red Cross’ services, especially during this period of drought, or considering the influx of refugees from Somalia for instance.

In Nairobi the Red Cross Society is involved in the Red Court Hotel, as it is already in Nyeri where a sister facility is in operation, but more ventures are planned for Kisumu, Eldoret and Malindi according to information available on their website. Another high class property is due to open in Nairobi before the end of the year too, to further expand the society’s investments.

Be sure to watch this space when their new hotel opens its doors, expected to be in December 2011, and then read all about their ambitious plans and what prompted them in the first place to enter the hospitality business to finance their humanitarian work. 

 

Mauritius news update – Isla Mauricia joins Africa Travel Association

ISLA MAURICIA JOINS THE AFRICA TRAVEL ASSOCIATION

ATA last week accepted the membership application of Isla Mauricia, as the first private sector member from the island, and hopefully opening the door for more members to join one of Africa’s foremost promotional bodies, based in New York. That would lead to the option to create a formal chapter of the ATA on Mauritius, where private and public sector could then partner with ATA to promote  the island’s tourism attractions in particular in the US and Canadian markets, where a huge market potential exists but is hardly tapped into until now.

Details about Isla Mauricia are found via www.isla-mauricia.com or else follow them on Twitter via @isla_mauricia where regular updates on the ‘going ons’ about Mauritius’ tourism industry can be found. Other regular event updates also come via @constancehotels, two good sources about news from this Indian Ocean island, considering that Mauritius’ tourism has not fully embraced the new media or worked the press in a similar fashion like other ‘vanilla islands’ have in recent years. Constance Hotels and Isla Mauricia, clearly ahead of the pack. 

 

Kenya aviation news update – Tyre burst on runway again exposes JKIA’s vulnerabiltiy

TYRE BURST EXPOSES NAIROBI’S VULNERABILITY

A burst tyre on a Jetlink plane coming from Eldoret in Western Kenya once again exposed the vulnerability of Nairobi’s Jomo Kenyatta International Airport, as the jet ‘got stuck’ on the runway after landing. While passengers were swiftly and efficiently evacuated the plane was surrounded by emergency service vehicles, bringing air traffic to a temporary halt. Flights into JKIA were put into a holding pattern while departing services had to be delayed, with aircraft ready to take off returning to the terminal.

The plane was eventually towed from the runway and new tyres fixed before it later resumed flights again, but industry observers promptly pointed to the airport’s key deficiency, having only one runway. While a second runway and taxiway is planned as part of JKIA’s expansion over coming years, for the time being, whenever there is an incident on the single runway, inbound traffic has to be diverted to other airports in Kenya or the region, costing operators dearly and disrupting passenger itineraries, especially for those with connecting flights. Entebbe International Airport is presently the only major airport in the region with two runways, although the second one is too short for many of the larger modern planes though regularly used by in particular light aircraft and the UN’s turbo prop aircraft based at their Entebbe Africa operation base.

Said a regular aviation source from Nairobi in a communication overnight: ‘This was a relatively light problem, as tyres can be replaced easily and a plane then towed, but in case of a more serious incident on the runway, Nairobi may be shut down for long hours or even days. In this day and age this is not acceptable. Kenya depends on constant availability of JKIA for cargo and passenger flights. KAA has failed the industry in so many areas, power outages, construction delays and lack of foresight. The aviation industry has for many years demanded a second runway to be constructed, to allow for more traffic and to create redundancy in case one runway has to be closed. But everyone can see what is happening at KAA. First it was a case of patronage and nepotism and now it is a case of incompetence, plain and simple. Our government must wake up to reality and listen to the aviation operators, not their bureaucrats many of whom are useless. The construction of a second runway should begin immediately, yesterday was a reminder what problems a closure of Nairobi can bring. It will disrupt Kenya Airways at the expense of for instance Ethiopian during JKIA closures. It will disrupt tourism and trade because you cannot tell people to divert to Mombasa and then come by road to the capital. It will disrupt flower and fish exports and produce will go to waste and our partners abroad will not tolerate a disruption in their supply chain. It is good government is building a lot of roads, but considering that they built a white elephant airport in Eldoret, they should have invested in JKIA instead first before embarking on that project.’

Other aviation sources in Kenya have in the past demanded that KAA’s board and management be sacked after a series of power outages which brought traffic repeatedly to a halt in recent months and that the contractors working on the airport expansion be instructed to work around the clock to speed up completion of new buildings and aircraft parking spaces. Nairobi is recognized as East Africa’s premier aviation hub but has for long suffered from overcrowding and is of late struggling with slots too, as more and more airlines ideally would want to fly to Nairobi but came to realize that congestion and operational problems as seen yesterday again need to be resolved first.

Watch this space.