Tanzania has historically been an attractive centre for trade due to its strategic location along the continent’s east coast. Today, the country is seen as one of Africa’s most dynamic and diverse markets, and although its economy remains highly dependent on agricultural output, the development of tourism and the discovery of natural gas in recent years should help offset the country’s depen
While some hotels in Tanzania have been affected by taxes on tourism activities and slowing foreign investment in 2017, the outlook for growth is nonetheless promising. Rising visitor numbers and the diversification of the tourism sector are encouraging major chains to move into the country with a view to the long term. Demand Growth Hotel occupancy and average daily rates (ADR) are set to…
As it looks to develop its first new National Tourism Policy in 18 years, the Tanzanian government is likely to have a number of priorities in mind, including boosting visitor numbers, enhancing market and geographical diversification, and improving standards to ensure that the country retains its status as a high-end destination. The new policy can draw on both the government’s overarching…
As the country starts to capitalise on its huge potential, and private and public investments strengthen its advantages as a destination, Tanzania’s tourism industry is expected to be among one of the world’s fastest-growing over the next decade, according to the World Travel & Tourism Council (WTTC). With 1.28m tourist arrivals in 2016, Tanzania is already one of the most-visited…
Interview:Nura-Lisa Karamagi, CEO, Hotels Association of Tanzania (HAT) How do taxes on Tanzania’s tourism and hospitality sectors affect local businesses? NURA-LISA KARAMAGI: The main burden has been the addition of a value-added tax (VAT) on tourism services. This has had a different impact on various players throughout the hotel industry, however. For those providing only accommodation,…
Tanzania’s tourism industry is expected to be among one of the world’s fastest growing over the next decade. With 1.28m tourist arrivals in 2016, the country is already one of the most-visited destinations in sub-Saharan Africa, and attractions such as the Serengeti National Park and Zanzibar have an increasingly prominent global profile. The government aims to attract 3m annual visitors by 2022,…
A World Bank-funded project to realise the potential of Tanzania’s southern safari circuit, coupled with an influx of high-end hospitality players, looks set to support long-term growth in the tourism industry. In mid-February Vice-president Samia Suluhu Hassan launched the TSh340bn ($150m) Resilient Natural Resource Management for Tourism and Growth (REGROW) project with the World Bank’s International…
An expansion in air connections, including low-cost routes, is expected to help sustain Tanzania’s growth in visitor numbers and strengthen its tourism sector. Last month the UAE-based low-cost carrier flydubai announced that from late October it will launch six flights per week between the UAE and Kilimanjaro, the site of Africa’s tallest peak. The airline already operates services to Dar es…
Tanzania’s efforts to improve its infrastructure have led to a search for new revenue streams, which may impact growth in the tourism sector over the near term. As part of a package of reforms aimed at funding an overhaul of the road, rail and air networks, in July the government removed a value-added tax (VAT) exemption for tourism services, which are now subject to 18% VAT. Financial services…
