More than a decade after its enactment, Rwanda’s 2014 tourism law is undergoing a review to respond to the sector's evolution, improve service quality, and ensure fair and inclusive regulation, according to the Rwanda Development Board (RDB).

The proposed revisions, currently being led by RDB, are aimed at updating the legal framework to reflect new realities in the industry which has grown in size, diversity, and complexity over the past 10 years.

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Speaking at a consultative meeting with tourism and hospitality stakeholders on Wednesday, August 20, Irène Murerwa, RDB’s Chief Tourism Officer, explained that the 2014 law was crafted at a time when the tourism sector was not at an advanced level as today.

It was, overall, designed to promote growth by minimising regulatory burdens and attracting investment.

The law at the time did not set clear timelines or renewal conditions for tourism operating licences, she said, stating that it was a way of incentivising businesspeople to venture into hospitality, "but as the sector has grown, the law must evolve too.”

During the Wednesday event, Kivu Noir Café – a coffee shop – raised a concern that relatively small entities such as coffee shops were being requested to fulfil requirements that are similar to those of five-star hotels, which has been a challenge for them in terms of obtaining an operating a tourism licence.

According to RDB, currently, licensing requirements for hotels, restaurants, bars, nights clubs include occupational permits, valid trade license/business registration, drainage system, room designation (hotels only), safe deposit (hotels only), sewage disposal and treatment, water supply systems, security systems, proof of qualification/experience of management staff, and property and liability insurance, among others.

Here is a look at some proposed changes to the existing legislation:

Requirements to differ based on business category, licence limit to be introduced

One of the central issues under review is the licensing system, which currently grants tourism operating licences for an unspecified period. Under the proposed reforms, licences would be valid for a standard period of one year, but the duration and requirements would vary depending on the nature, size, and category of the business.

As of now, the flat licence fee is Rwf80,000, regardless of the business size or location, something she described as unfair.

Smaller businesses such as coffee shops or bars in a rural district, tour operators, or local bars may not be subjected to the same licensing fees or requirements as large-scale or five-star hotels in Kigali.

The reason for this is that the risks, revenue, and operational scale are different, Murerwa said.

The review of the law seeks to address this by introducing clear categories for entities such as nightclubs, tour operators and coffee shops, and high-end hotels. The proposals also include guidelines based on location, business model, and investment levels.

According to RDB, future licensing requirements will differentiate between high-end and small-scale businesses, ensuring fairness and reducing unnecessary compliance burdens.

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Providing for new business models and emerging trends

Another driver of the law review is the emergence of new tourism models and services that were not envisioned when the 2014 law was passed.

In 2014, Murerwa said there were no services like Airbnb, Lake Restaurant boats, or pedal tourism experiences in Bugesera, which are available currently.

"So, all these things that are coming are part of the new tourism law, because now we are looking forward, projecting and saying we cannot revise the law all the time,” she observed.

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While the country is benchmarking itself against global standards in cities like Singapore and regions like North America, Murerwa said that there is a need to remain realistic and inclusive.

RDB is also considering flexibility with security requirements, moving away from mandatory contracts with large private security firms for small businesses.

For instance, instead of asking a small coffee shop or restaurant to hire a security company, the option may be to require a CCTV system to ensure traceability and accountability in case of an incident.

Stakeholder engagement at the centre

Murerwa stated that RDB wants to deliberately make the law consultative through a process coordinated with the Rwanda Tourism Chamber under the Private Sector Federation (PSF), to ensure private sector voices are incorporated.

"We are now waiting for the private sector, the tourism chamber, more specifically, to provide us with comments,” she said, indicating the people who interact with tourists daily are in the best position to suggest practical improvements.

This participatory approach includes reviewing challenges such as rigid licensing criteria and the blanket application of guidelines, which smaller businesses such as coffee shops say are ill-suited for their scale and resources.

What’s next?

The internal review at RDB has already been completed, and the draft law is currently being refined with input from stakeholders, particularly the private sector, Murerwa said.

She indicated that, before the end of this year, RDB hopes to table the draft law to Cabinet and Parliament for approval, observing that the goal is to provide a legal framework that will serve the tourism sector effectively for the coming years.