The number of international tourists increased by 96%, from 922,692 tourists in 2021 to 1.8 million tourists in 2023: Photo: Courtesy
Tanzania’s Tourism Soars: Revenues Up 36% to $3.4 Billion, Enters Global Top 10
By Adonis Byemelwa
In a striking announcement during her 2024/2025 budget speech in Parliament, Minister of Natural Resources and Tourism, Hon. Angellah Kairuki, revealed that Tanzania’s tourism revenues have skyrocketed from USD 2.5 billion in 2022 to an impressive USD 3.4 billion in 2023—a staggering 36% increase.
This significant rise has positioned Tanzania among the top 10 countries, ranking 3rd in Africa and 9th globally, where tourism sector revenues have grown by over 28% compared to 2019 figures before the COVID-19 pandemic.
The Ministry of Natural Resources and Tourism has requested Parliament to approve a budget of Sh 348.1 billion for the 2024/25 fiscal year, a 47% reduction from the previous year’s budget. For the 2023/2024 fiscal year, the ministry was allocated Sh 654.7 billion, which has now decreased by Sh 306.5 billion for the upcoming year.
In her address to Parliament on May 31, 2024, Minister Kairuki explained that of the requested funds, Sh 250.8 billion is earmarked for recurrent expenditures, including salaries and other expenses.
“Honorable Speaker, within these recurrent expenditure funds, Sh125.5 billion is for other expenses, and Sh 125.3 billion is for salaries,” stated Minister Kairuki.
Of the amount requested, Sh 97.2 billion is allocated for development projects, including anti-poaching initiatives. However, these funds for development projects have decreased by 42.2% compared to the previous year.
In the 2023/24 fiscal year, the ministry was allocated Sh168.2 billion for development projects, which has significantly dropped to Sh 97.2 billion for the fiscal year starting July 2024.
Minister Kairuki outlined eight priorities for her ministry for the 2024/25 fiscal year, including continuing to promote tourism domestically and internationally through programs like “Tanzania the Royal Tour” and the film “Amazing Tanzania.
“Other major strategies include advertisements in major sports leagues, developing strategic tourism products, improving infrastructure in conservation areas, and strengthening the protection and conservation of wildlife, forests, beekeeping, and historical sites.
The ministry will also focus on educating communities on the sustainable use of natural resources, enhancing data collection systems related to these resources, and implementing strategies to increase revenue and improve revenue collection systems.
Revenues from international tourism activities have increased by 161% over three years, attributed to improved infrastructure and the impact of the “Royal Tour” film. Revenue from international tourism rose from USD 1.3 million, equivalent to Sh 3.38 billion, to USD 3.4 million, equivalent to Sh 8.85 billion.
Minister Kairuki also reported a 279% increase in national tourism revenues. Domestic tourism revenue grew from TZS 46.3 billion in 2021 to Sh 175.3 billion in 2023. By April 2024, the ministry had collected Sh 57.64 billion, equivalent to 73.54% of the target for the fiscal year ending June 2024.
The number of international tourists increased by 96%, from 922,692 tourists in 2021 to 1.8 million tourists in 2023. Additionally, domestic tourists visiting attractions rose by 152%, from 788,933 to 1,985,707 in 2023. “Indeed, this is a record that has never been reached in our country,” added Kairuki.
In 2022, Tanzania’s tourism sector soared after President Samia Suluhu Hassan starred in the Tanzania Royal Tour documentary. Photo: Courtesy.
However, critics question the necessity of the significant debt and loans despite the increased tourism revenue. Taxes have yet to be fully collected, employees remain unpaid, and partner countries have not provided aid.
Surprisingly, the government under President Samia has borrowed more than any previous Tanganyika government within just three years, with the national debt rapidly increasing to Sh 83 trillion. Despite the minister’s claims of collecting USD 3.4 billion, equivalent to Sh 8.4 trillion, the economy remains challenging, and many projects are incomplete.
An anonymous CCM MP criticized the government’s borrowing, stating that while tourism generates substantial revenue, the government continues to accrue debt. Special Seats MP Ester Bulaya also argued that the request for an additional Sh 14 billion in the Ministry’s budget is excessive, noting that the funds could be better allocated, especially given the severe damage to infrastructure caused by heavy rains.
UNWTO 2021 statistics highlight disparities in tourism numbers: Morocco, with a population of 37 million, received 8.7 million tourists; South Africa, with 62 million people, received 6.8 million tourists; Kenya, with 54 million people, received only 1.48 million tourists; and Tanzania, with 65 million people, received 1.4 million tourists.
In contrast, smaller countries like the Bahamas, with a population of 400,000, received 207,000 tourists; the Maldives, with nearly half a million people, received 1.8 million tourists; Spain, with 47 million people, saw about 71 million tourists; France, with 67 million people, received 79 million tourists; and Italy, with a population of 59 million, received 50 million tourists.
