Tanzania tourism is growing and to meet this growth, the government has announced some 179 investment sites earmarked for the construction of accommodation facilities. Photo/National geographic
Arusha hosts major tourism agents and operators’ summit
The government earmarks over 170 areas for accommodation facilities
Tanzania reported tourism receipts of USD 3,368.7 million in 2023
Investments in Tanzania’s tourism sector
Tanzania’s tourism is growing, and to meet this growth, the government has announced some 179 investment sites earmarked for the construction of accommodation facilities.
Announcing the country’s tourism hub of Arusha earlier this week, Deputy Conservation Commissioner of the Ministry of Natural Resources and Tourism, Mr Iman Nkuwi, said the government is committed to attracting local and foreign investors.
“The government has earmarked several areas for investment in the tourism industry for both local and foreign investors,” he told a host of visiting global travel agents at a high-profile Business-to-Business (B2B) event.This week, Arusha hosted a number of influential global travel and tourism agents and local tour operators. The B2B event was the brainchild of African Queen Adventures CEO Alice Manupa.
In her address to the tourism and hospitality patrons, the CEO said the event is designed to offer global agents a firsthand experience of Tanzania’s renowned tourism attractions.
“This is a milestone for the Tanzania’s tourism industry…considering that 60 per cent of global travel and tourism decisions are influenced by travel agents, hosting 120 of the world’s most influential agents is bound to skyrocket our destination profile and visibility,” she commented and expressed her optimism in the outcome of the event.
Seconding the optimism, Mr Nkuwi, who is in the ministry’s Research and Training department, emphasized the government’s commitment to improving the business environment in Tanzania.
“We are open for business and we welcome large-scale investors to our hospitality sector to develop state-of-the-art recreation facilities,” he told the investors.
The government delegate highlighted opportunities to set up wildlife captive facilities, luxury lodges, and camps. He also cited the need for facilities to meet the rapidly growing number of large events held in the country, including high-level Meetings, Incentives, Conferences, and Exhibitions (MICE) that require ultra-facilities.
Tanzania is looking to expand its hospitality sector to accommodate the increasing influx of tourists expected to grow over the coming years.
“The strategic locations of these investment sites, coupled with the government’s supportive policies, present a golden opportunity for global investors to tap into Tanzania’s thriving tourism industry,” he told the hospitality and tourism investors and stakeholders.
He urged all capable investors to meet the demand for high-quality accommodation and recreational facilities. He reiterated the government’s commitment to facilitating and fostering an investor-friendly environment nationwide.
“With 179 earmarked sites ready for development, Tanzania’s tourism industry stands on the brink of a transformative era, offering promising returns for discerning investors who align with the country’s vision for sustainable and inclusive growth,” he said.
Welcoming the investment invitation, Mr. Murtaza Kalender, vice president of the Istanbul Tourism Association (ISTA), described the government’s incentives as ‘attractive’ and will bear fruit.
“We would otherwise not know that there is a huge potential for investment in the hospitality industry, without this special presentation to us. Tanzania is now my second home,” he said in an impassionate quip.
He went on to describe Tanzania as a destination that could attract millions of tourists over the next decade, given the growth trend of the tourism sector.
“Collaboration between international travel agents and local tour operators is expected to not only bolster the tourism infrastructure but also enhance the overall visitor experience, thus contributing significantly to Tanzania’s economic growth, ” said Mr Murtaza.
Tanzania’s tourism receipts at record high.[Photo/thecitizen.co.tz]After the global pandemic, Tanzania’s tourism sector has recovered considerably. The country is reported to have enjoyed tourism receipts of USD 3,368.7 million in 2023, a record-high figure.The increase in receipts, compared to USD 2,527.8 million in 2022 and USD 1,310.3 million in 2021, is consistent with the rise in tourist arrivals.“In 2023, Tanzania saw a tremendous bounce back in the tourism industry, with the number of tourist arrivals and revenues surpassing the pre-pandemic levels,” writes PwC, a well-recognized data and consultancy firm.
In its report on the tourism sector performance, PwC notes that; “According to the Bank of Tanzania’s monthly economic review of January 2024, forex earnings reported record growth of USD 3.4 billion, an increase of 36% compared to the same period in 2022.”
The country has set a target of receiving 5 million tourists annually, expected to generate USD 6 billion by 2025.
“At first glance the revenue target seems more achievable than the arrivals target. Assuming the growth of 36 percent continues for the next two years, the receipts from tourist arrivals would reach USD 6. 3 billion by December 2025,” PwC calculates.
“What is clear is that there is a tremendous opportunity to build on the recent tremendous performance of the tourism industry, so as to optimize the future of the sector,” the report reads in part.
In a recent World Bank’s Country Economic Memorandum for Tanzania titled “Building Tanzania tourism back better,” the Bank suggests ensuring accessibility of areas beyond Zanzibar and the Northern Circuit to attract even more tourists.
In the report, the Bank advises Tanzania to “Create an enabling business environment for private sector investment by addressing longstanding regulatory and infrastructure bottlenecks and identifying the new regions and new service offerings for the sector’s growth.”
Giza Mdoe is an experienced journalist with 10 plus years. He's been a Creative Director on various brand awareness campaigns and a former Copy Editor for some of Tanzania's leading newspapers. He's a graduate with a BA in Journalism from the University of San Jose. Contact me at giza.m@mediapix.com
