TZ leads in non-aeronautical revenue in EA Community

TANZANIA is leading among East African countries in terms of non-aeronautical revenue collected last year, placing the country at a better position to attain the standard ratio agreed by the regional member states.

According to experts, non-aeronautical revenue comprises commercial revenue from sources such as land lease, duty free, retail, parking fees, and other commercial activities.

The agreed non-aeronautical revenue ration by EAC member countries is 30:70 and Tanzania has attained 27:73. Number 30 represents non aeronautical revenue while 70 stands for aeronautical revenue.

Minister for Works and Transport Prof Makame Mbarawa revealed that on Friday during the launching of a new logo for the Tanzania Airports Authority (TAA). He said that despite the achievement, the government is working hard to attain the agreed ratio.

According to the minister, by December last year, incomes generated from non-aeronautical at different airports stood at the 27:73.

This ratio makes Tanzania to be the leading country in EAC, followed by Uganda which recorded 21:79 ratio while Kenya recorded 18:82 in the same period.

Rwanda on the other hand recorded 15:89 followed by Burundi which had reached 11:89 ratio.

“This milestone has been reached due to efforts of investing in human resources and offering airport services of competitive international standards,” the minister said.

He highlighted that non aeronautical revenues come from airport services or products which are not associated with aviation such as vehicle parking and rental. They also include restaurants, mobile catering and food service, taxi service, car rental, and mobile service vans.

Dar es Salaam based Julius Nyerere International Airport (JNIA), Kilimanjaro International Airport (KIA) and Abeid Amani Karume International Airport took the lion’s share in generating such revenues.

He said that some of the initiative taken were to step up security and improve airport infrastructures, which have in turn attracted more international and local flights.

Prof Mbarawa further added that the initiatives also helped to promote airport business in both areas of direct and indirect aviation related revenues.

“We have completed installations of the airport landing lighting system at Songwe Airport and this year similar task will be carried out at Dodoma Airport which will be followed by others, allowing 24-hour operations,” he said.

Prof Mbarawa added that about 30bn/- will be set aside in the next national budget for improving airport security.

In a related development, Prof Mbarawa said Tanzania has recorded 30 per cent increase of   passengers using aviation services by December 2022 compared to the same period in 2021.

He attributed such an increase to the commitment by the government to ensure growth of aviation industry in the country.

Earlier, TAA Director General Mr Mussa  Mbura informed the minister that international airlines are set to increase.  “This is after two airline companies from Saudi Arabia and France have confirmed to start such operations at JNIA and Zanzibar.

“TAA strives to be a world class business entity and hence, this is why we are coming up with the best infrastructures to suit our customers. The adopted international view of our infrastructure is a secret behind attracting investment to the aviation sector.”

The event of launching the new logo for TAA went hand in hand with the opening of a new Very Very Important Person (VVIP) restaurant at JNIA’s Terminal 2. Minister Mbarawa also used the avenue to hand over 16 new station wagon cars to TAA.

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