Tanzania’s tourism sector is experiencing remarkable growth, strengthening the national economy, accelerating infrastructure development, and positioning the country as one of Africa’s fastest-rising travel destinations.
In May 2026, Tanzania’s Minister for Natural Resources and Tourism, Ashatu Kijaji, presented the 2026/27 budget estimates before Parliament in Dodoma, announcing record tourism figures that underscore the country’s growing global appeal.
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According to ministry data, Tanzania welcomed 5.94 million tourists in 2025, representing a 10.7 percent increase from the 5.36 million visitors recorded in 2024. Domestic tourism grew strongly by 13.1 percent to reach 3.64 million visitors, while international arrivals rose by 7.1 percent to 2.29 million.
The economic impact has been substantial. Tanzania generated approximately US$4.4 billion in tourism revenue in 2025, reflecting a 12.82 percent increase from the US$3.9 billion earned the previous year. The Bank of Tanzania confirmed that tourism has now overtaken gold as the country’s largest foreign exchange earner, generating US$3.92 billion in the year ending May 2025, compared to gold exports valued at US$3.83 billion.
Tourism now contributes nearly 25 percent of Tanzania’s foreign exchange earnings, 17.2 percent of Gross Domestic Product, and more than half of the country’s service-sector revenues. Internationally, the United Nations World Tourism Organisation ranked Tanzania 11th globally in 2025 for growth in international tourist arrivals. The country recorded a 51 percent increase compared to pre-pandemic levels in 2019, placing it among the best-performing tourism destinations in Africa and the Middle East.
A major factor behind this success has been Tanzania’s aggressive investment in transport and tourism infrastructure. The government has constructed three airports within national parks, rehabilitated eight airstrips, and expanded Air Tanzania operations to 33 routes, including new Pan-African connections to destinations such as Cape Town, Accra, and Victoria Falls.
The operationalisation of the Standard Gauge Railway between Dar es Salaam and Dodoma has further improved access to key tourism destinations. These developments support Tanzania’s broader economic transformation agenda under the Fourth Five-Year Development Plan and the Dira 2050 vision, which aims to build a US$1 trillion economy by 2050.
President Samia Suluhu Hassan has also played a significant role in boosting the country’s international visibility through tourism campaigns such as Royal Tour and Amazing Tanzania, both of which have helped attract global attention from travellers and investors.
Despite the impressive momentum, experts caution that several structural challenges could limit the sector’s long-term impact if left unresolved. Government reports indicate that development expenditure reached only 71.9 percent of its target by September 2025 due to delays in fund disbursement and project implementation.
Land ownership disputes and slow title issuance processes also continue to discourage tourism investment, while many local small and medium-sized businesses face high lending rates that restrict their participation in the tourism economy. Rising food inflation has further increased pressure on communities surrounding major tourism centres.
Industry stakeholders are therefore closely watching proposed reforms, including the review of the Tourism Development Levy allocation and the implementation of recommendations from a major tax reform commission report submitted in March 2026. These reforms are expected to influence the future competitiveness of Tanzania’s tourism sector.
To sustain its tourism boom, Tanzania is increasingly being encouraged to move beyond visitor numbers alone and focus on deeper economic integration. Policymakers are expected to prioritise faster infrastructure delivery, expand low-interest financing for local hospitality and artisan businesses, and strengthen economic connections that allow communities to benefit more directly from tourism revenues.
By addressing financing and governance challenges while continuing to expand regional connectivity and investment, Tanzania has a strong opportunity to convert its tourism success into long-term, inclusive, and sustainable economic growth for both East Africa and the wider continent.
