Tanzania Investment and Consultant Group Ltd

| Economic Research Centre

Tanzania’s Tourism Booms with 12.4% Growth, Contributing 17.2% to GDP
March 14, 2025  
Tanzania’s tourism sector expanded significantly in 2024, with 1,748,500 tourist arrivals (+12.4%), generating USD 3,259.8 million in earnings (+9.5%). The sector contributed 17.2% to GDP, up from 16.4% in 2023, and supported over 1.5 million jobs. Serengeti National Park remained the top attraction, receiving 589,300 visitors (+11.2%), while Mount Kilimanjaro saw the fastest growth (+13.4%). […]

Tanzania’s tourism sector expanded significantly in 2024, with 1,748,500 tourist arrivals (+12.4%), generating USD 3,259.8 million in earnings (+9.5%). The sector contributed 17.2% to GDP, up from 16.4% in 2023, and supported over 1.5 million jobs. Serengeti National Park remained the top attraction, receiving 589,300 visitors (+11.2%), while Mount Kilimanjaro saw the fastest growth (+13.4%). However, rising costs and regional competition pose challenges, requiring continued investment in infrastructure and marketing to sustain growth.

1. Tourism Sector Growth: Strong Recovery and Increased Earnings

  • Tanzania received 1,748,500 tourists in 2024, a 12.4% increase from 1,556,200 in 2023.
  • Tourism earnings reached USD 3,259.8 million in 2024, compared to USD 2,976.3 million in 2023, reflecting a 9.5% increase.

What It Means:

More tourists are visiting Tanzania, showing post-pandemic recovery and increased global interest in Tanzanian destinations.
Higher earnings indicate stronger foreign exchange inflows, supporting the economy.
The growth rate has slowed slightly compared to previous years, requiring further tourism development strategies.

2. Visitor Arrivals by Region

  • European tourists led arrivals, accounting for 39.6% (693,500 visitors), driven by demand for wildlife safaris and beach tourism.
  • North America contributed 18.3% (319,900 visitors), reflecting growing interest from the U.S. and Canada.
  • Asian tourists accounted for 14.2% (248,300 visitors), with an increase in visitors from India and China.
  • African tourists made up 21.7% (379,500 visitors), mainly from Kenya, South Africa, and Uganda.

What It Means:

Europe remains Tanzania’s largest tourism market, but North America and Asia are emerging as key growth areas.
Regional tourism from African countries is growing, supporting cross-border trade and investment.
More investment is needed in marketing to diversify Tanzania’s tourism sources further.

3. Key Tourism Destinations and Their Growth

Tourism DestinationNumber of Visitors (2024)Growth from 2023 (%)
Serengeti National Park589,300+11.2%
Zanzibar Beaches478,900+9.6%
Mount Kilimanjaro295,400+13.4%
Ngorongoro Crater273,600+10.1%

What It Means:

Serengeti remains the top attraction, but Zanzibar and Kilimanjaro are gaining more visitors.
Growth in mountain tourism (+13.4%) shows increased interest in adventure tourism.
More investments in infrastructure and conservation are needed to sustain growth.

4. Contribution of Tourism to Tanzania’s Economy

  • Tourism contributed 17.2% to Tanzania’s GDP in 2024, up from 16.4% in 2023.
  • The sector provided direct employment to over 1.5 million people, supporting jobs in hotels, transportation, and cultural tourism.
  • Hotel occupancy rates increased to 74.5%, up from 69.8% in 2023, showing higher demand for accommodation.

What It Means:

Tourism is a key economic driver, supporting jobs and GDP growth.
Higher hotel occupancy rates indicate strong demand, benefiting the hospitality sector.
More investment is needed in training and service quality to maintain competitiveness.

5. Challenges Facing Tanzania’s Tourism Sector

🔸 High operating costs – Rising costs for park fees, hotel services, and travel expenses may limit growth.
🔸 Competition from other African destinations – Countries like Kenya and South Africa offer similar safari experiences.
🔸 Climate change effects – Rising temperatures and unpredictable rainfall patterns could affect wildlife and natural attractions.
🔸 Infrastructure gaps – Some key parks and destinations still face challenges with road access and accommodation availability.

Summary of Key Trends in Tanzania’s Tourism (2024)

Indicator2024 FiguresComparison with 2023
Total Tourist Arrivals1,748,500 visitors+12.4%
Tourism EarningsUSD 3,259.8 million+9.5%
Top Source MarketsEurope (39.6%), North America (18.3%)Stable growth
Top DestinationSerengeti (589,300 visitors)+11.2%
Hotel Occupancy Rate74.5%Up from 69.8%
Tourism’s GDP Contribution17.2%Up from 16.4%

Economic Implications of Tourism Growth in Tanzania

🔹 Positive Signs:
Tourism remains a key foreign exchange earner, supporting economic growth.
Diversification in visitor sources (North America and Asia) reduces reliance on Europe.
Growth in adventure tourism (Kilimanjaro) and cultural tourism strengthens the sector.

🔸 Challenges:
High costs and competition require better pricing and service strategies.
Infrastructure improvements are needed to support continued growth.
Climate change could impact long-term sustainability of tourism attractions.

Key Insights from Tanzania’s Tourism Performance (2024-2025)

1. Tanzania’s Tourism Industry is Expanding (+12.4% Arrivals, +9.5% Revenue)

  • 1,748,500 tourists visited Tanzania in 2024, up 12.4% from 2023.
  • Tourism earnings grew by 9.5% to USD 3,259.8 million, reflecting higher spending by visitors.

What It Means:

Tanzania remains a leading destination in Africa, attracting more tourists each year.
More foreign exchange is entering the economy, strengthening reserves and GDP growth.
Revenue growth (+9.5%) is slower than arrival growth (+12.4%), suggesting that tourists may be spending less per visit.

2. Europe Dominates, But New Markets Are Emerging

  • Europe remains the largest source of tourists (39.6%), followed by North America (18.3%) and Asia (14.2%).
  • African tourists (21.7%) are increasing, mainly from Kenya, Uganda, and South Africa.

What It Means:

European tourism remains strong, supporting peak seasons.
North America and Asia are growing markets, diversifying revenue sources.
Tanzania must continue marketing efforts in Asia and North America to reduce reliance on European tourists.

3. Serengeti and Kilimanjaro Lead Tourism Growth

  • Serengeti National Park remains the top attraction, receiving 589,300 visitors (+11.2%).
  • Mount Kilimanjaro had the fastest growth, with a 13.4% increase in climbers.
  • Zanzibar’s beach tourism continues to expand (+9.6%), boosting hotel occupancy.

What It Means:

Safari tourism remains strong, keeping Tanzania competitive in Africa.
Kilimanjaro’s growth suggests a rising interest in adventure tourism.
Infrastructure improvements in parks and transport networks are needed to sustain growth.

4. Economic Impact: Tourism Now Contributes 17.2% to GDP

  • Tourism’s share of GDP increased to 17.2%, up from 16.4% in 2023.
  • Over 1.5 million jobs are directly supported by tourism, including hotels, transport, and tour operations.

What It Means:

Tourism is a critical sector for employment and national revenue.
A strong tourism industry supports businesses and local economies.
Rising costs for travel, accommodation, and park fees may slow future growth.

5. Challenges to Tanzania’s Tourism Growth

Higher costs – Increasing Park fees, hotel rates, and transport costs may reduce affordability.
Regional competition – Kenya, South Africa, and Rwanda are investing in tourism, increasing competition.
Climate change – Unpredictable weather patterns could affect wildlife migration and beach tourism.
Infrastructure gaps – Roads and airports need upgrades to handle increasing visitors.

Overall Economic Implications

🔹 Positive Signs:
Tourism continues to grow, boosting Tanzania’s foreign exchange earnings.
New markets (North America & Asia) are emerging, reducing reliance on Europe.
Kilimanjaro and Zanzibar are attracting more adventure and luxury tourists.

🔸 Challenges:
Slower revenue growth compared to arrivals suggests visitors are spending less.
High travel costs and infrastructure gaps could slow future expansion.
Competition from other African destinations requires better marketing and service improvements.

Subscribe to TICGL Insights

Stay informed and gain the crucial information you need to make strategic decisions in Tanzania's vibrant market.
Subscription Form
crossmenu linkedin facebook pinterest youtube rss twitter instagram facebook-blank rss-blank linkedin-blank pinterest youtube twitter instagram