Tanzania Investment and Consultant Group Ltd

| Economic Research Centre

Tanzania's tourism sector exemplifies resilience and growth
December 4, 2024  
Tanzania’s tourism sector has demonstrated remarkable resilience and growth over the past decade. From steady increases in visitor numbers pre-COVID-19 to a sharp decline during the pandemic, the industry has rebounded with record-breaking arrivals in 2023. Key source markets span East Africa, Western countries, and emerging Asian economies, reflecting diverse appeal. With ongoing recovery efforts […]

Tanzania’s tourism sector has demonstrated remarkable resilience and growth over the past decade. From steady increases in visitor numbers pre-COVID-19 to a sharp decline during the pandemic, the industry has rebounded with record-breaking arrivals in 2023. Key source markets span East Africa, Western countries, and emerging Asian economies, reflecting diverse appeal. With ongoing recovery efforts and strategic investments, Tanzania is poised to solidify its position as a premier global destination, projecting visitor numbers to reach up to 3 million by 2030.

Annual Visitor Numbers (2015–2024)

Key Trends:

  1. Steady Growth (2015–2019)
    • Annual growth rates ranged from 3.3% to 13.5%.
    • Peak number in 2019: 1,510,151 visitors, before the COVID-19 pandemic.
  2. COVID-19 Impact (2020)
    • Visitor numbers fell by 58.9%, down to 620,867.
  3. Recovery Phase (2021–2023)
    • 2021: A 48.6% recovery, reaching 922,692 visitors.
    • 2022: A robust 57.7% growth, reaching 1,454,920 visitors.
    • 2023: Achieved a record high of 1,806,359 visitors (24.2% growth).
  4. 2024 Partial Data
    • Current visitor numbers stand at 1,560,641, with potential to grow depending on the remaining months.

Visitor Distribution (2024):

Top Source Markets

  • East Africa:
    • Kenya: 156,674 visitors (10% of total visitors).
    • Burundi: 153,497 visitors (9.8% of total visitors).
  • Western Countries:
    • USA: 112,579 visitors (7.2%).
    • France, Germany, Italy, UK: Combined total 297,823 visitors (19% of total visitors).
  • Asian Markets:
    • China: 54,284 visitors (3.5%).
    • India: 48,679 visitors (3.1%).
  • Other African Countries:
    • DRC: 49,963 visitors (3.2%).

Key Observations and Insights

  1. Regional Breakdown:
    • East African countries dominate tourism numbers, highlighting strong regional ties and cross-border travel.
    • Western nations account for significant long-haul arrivals, driven by Tanzania’s appeal for safari and wildlife tourism.
    • Asian markets, though smaller, show consistent growth, reflecting the global rise in outbound tourism from China and India.
  2. Economic Impacts of COVID-19:
    • Tourism's sharp decline in 2020 significantly affected GDP, foreign exchange earnings, and employment. The partial recovery in 2021 was supported by eased travel restrictions and successful vaccination campaigns globally.
  3. Projected Growth (to 2030):
    • Assuming 8% annual growth, visitor numbers could rise to:
      • 2025: 1.94 million visitors.
      • 2030: 2.5–3 million visitors.
    • These projections hinge on stability in global travel trends, infrastructure improvement, and marketing efforts.

Figures for Context:

  • Compound Growth Analysis (2015–2019):
    • Total visitors in 2015: 1,137,182.
    • Total visitors in 2019: 1,510,151.
    • Cumulative growth: 32.8%.
  • Post-COVID Growth (2020–2023):
    • Visitors in 2020: 620,867.
    • Visitors in 2023: 1,806,359.
    • Cumulative recovery: 191%.
  • Market Contributions (2024 Partial Year):
    • Top 5 countries combined contribute 652,850 visitors, accounting for 41.8% of total visitors.

Strategic Recommendations for Growth

  1. Market Diversification: Focus on attracting more visitors from emerging markets such as India and China.
  2. Infrastructure Investment: Improve airports, roads, and tourist facilities to enhance the visitor experience.
  3. Marketing Campaigns: Strengthen digital marketing and participation in global travel expos targeting high-potential markets like Western Europe and North America.
  4. Regional Collaboration: Leverage the East African Community (EAC) framework to promote cross-border tourism packages.

The detailed analysis of Tanzania's tourism data reveals several critical insights:

1. Steady Pre-COVID Growth (2015–2019)

  • Tanzania experienced consistent growth in tourism numbers before the pandemic, indicating a positive trajectory driven by:
    • Increased global awareness of Tanzania’s attractions, including Serengeti, Zanzibar, and Mount Kilimanjaro.
    • Improved marketing efforts and participation in international tourism expos.
    • Political stability and regional peace.

What it tells:
Tourism was becoming a critical driver of Tanzania’s economy, contributing significantly to GDP and employment. The country's reputation as a premier safari and cultural tourism destination was solidifying globally.

2. Severe Impact of COVID-19 (2020)

  • The sharp decline (58.9%) in visitor numbers in 2020 reflects:
    • The global halt in travel due to lockdowns and health concerns.
    • Dependency on international markets, which were heavily disrupted.

Tanzania’s tourism industry is vulnerable to global disruptions. A lack of domestic tourism reliance and a high dependence on international travelers amplified the economic shock.

3. Robust Recovery (2021–2023)

  • The recovery trend, with record numbers in 2023, highlights:
    • Resilience of the tourism sector and effective reopening strategies.
    • Strong demand for travel to natural and open-space destinations post-pandemic.

Tanzania’s tourism appeal remains strong. Efforts to restore confidence, including health safety measures and international marketing campaigns, were successful.

4. Changing Source Markets (2024 Data)

  • The dominance of East African countries (Kenya, Burundi) in visitor numbers suggests:
    • Cross-border ease of travel and cultural ties.
    • Growing regional tourism contributing to stability in numbers.
  • Significant representation from Western countries (USA, France, Germany, UK) shows:
    • Continued global interest in Tanzania’s wildlife and safari offerings.
  • Contributions from China and India point to growing engagement with emerging markets.

There’s a balanced mix of regional and international visitors, reducing over-reliance on any single market. However, opportunities exist to further tap into Asian and regional tourism.

5. Growth Projections (2025–2030)

  • Assuming 8% annual growth, reaching 2.5–3 million visitors by 2030 is feasible, driven by:
    • Continued investment in tourism infrastructure.
    • Expanding marketing efforts globally.
    • Enhancing offerings to cater to diverse visitor interests.

Tanzania has immense potential for growth, but achieving these projections will require addressing challenges like infrastructure gaps, environmental sustainability, and competition from other African destinations.

6. Tourism’s Economic Role

  • A high reliance on tourism emphasizes its role as:
    • A major foreign exchange earner.
    • A significant employer in sectors like hospitality, transport, and craft industries.

Tourism is a pillar of Tanzania’s economic growth. Diversifying products (e.g., eco-tourism, cultural tourism) and markets will make the sector more resilient.

Overall Takeaways

  • Tanzania’s tourism industry has strong foundations, with an upward growth trajectory disrupted only by COVID-19.
  • The industry is diversifying in source markets, but further efforts are needed to enhance sustainability and reduce vulnerabilities to global shocks.
  • Strategic investments and innovative marketing will ensure Tanzania remains competitive in the global tourism landscape.

Tanzania's Tourism Trends: Growth, Challenges, and Opportunities

Annual Tourism Numbers (2015–2024)

YearVisitorsGrowth/Decline Rate
20151,137,182
20161,284,27913% growth
20171,327,1433.3% growth
20181,505,70213.5% growth
20191,510,1510.3% growth
2020620,86758.9% decline (COVID-19 impact)
2021922,69248.6% recovery
20221,454,92057.7% growth
20231,806,35924.2% growth
20241,560,641*Partial year data

Top 10 Countries Visiting Tanzania in 2024

RankCountryVisitors
1Kenya156,674
2Burundi153,497
3USA112,579
4France79,079
5Germany76,021
6Italy75,543
7UK67,180
8China54,284
9Democratic Republic of Congo49,963
10India48,679

Key Observations

  • Steady Growth Pre-COVID (2015–2019): Tourism numbers grew consistently with the highest growth rates in 2016 (13%) and 2018 (13.5%).
  • COVID-19 Impact (2020): Visitor numbers dropped drastically by 58.9% due to global travel restrictions.
  • Post-COVID Recovery: A strong recovery trajectory began in 2021, with 2023 recording the highest annual visitors to date.
  • Regional Importance: East African countries (Kenya and Burundi) dominate the top source markets, contributing significantly to overall visitor numbers.
  • Western and Asian Contributions: Western countries (USA, France, Germany, Italy, UK) and Asian markets (China, India) make up a substantial portion of international tourists.

Projection to 2030

  • With an assumed 8% annual growth rate, Tanzania’s tourism numbers could reach approximately 2.5–3 million visitors by 2030, contingent on stable global conditions and effective marketing efforts.

Note: *2024 data is partial and may be updated with end-of-year statistics.

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