Tourism accounts for 55.1% of Tanzania’s service income as sector surpasses gold in foreign exchange earnings – Bank of Tanzania

TANZANIA – Tourism has overtaken gold to become Tanzania’s largest foreign exchange earner, marking a significant shift in the country’s economic profile, according to the Bank of Tanzania’s latest Monthly Economic Review.

According to the review, tourism revenues reached US$3.92 billion in the year ending May 2025, up from US$3.63 billion the previous year.

This growth means tourism now contributes 55.1% of all service-related income, highlighting the sector’s increasing importance to the national economy.

The rise in tourism earnings is closely linked to a notable increase in international arrivals. Visitor numbers climbed to 2,170,360, compared to 1,961,870 in the previous year.

This influx of tourists not only boosted overall revenue but also allowed tourism to edge past gold exports, which stood at $3.83 billion for the same period.

The data signals a new era for Tanzania, where the allure of its natural attractions and wildlife reserves is translating into tangible economic benefits.

To maintain this momentum, the Bank of Tanzania has introduced new policy measures aimed at supporting continued sector growth.

On July 8, 2025, the central bank announced exemptions for tour operators from select foreign exchange regulations.

Under these changes, tour operators can now use foreign currency to pay for services provided to non-resident tourists and are permitted to purchase specialized vehicles locally using foreign exchange.

Industry stakeholders have welcomed these adjustments, viewing them as essential for sustaining Tanzania’s competitive edge in the global tourism market.

These policy updates are expected to ease operational hurdles for tour operators, particularly those serving international visitors.

By allowing greater flexibility in foreign currency transactions, the Bank of Tanzania aims to ensure that the sector remains attractive to investors and responsive to the needs of global travelers.

The changes are also anticipated to improve service quality and enhance the overall visitor experience.

As tourism cements its position as Tanzania’s top foreign exchange earner, its role in driving economic growth and job creation becomes even more pronounced.

The sector’s contribution of 55.1% to all service income reflects both its resilience and its growing potential, positioning Tanzania as a premier destination in Africa’s evolving tourism landscape.

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