The COVID-19 pandemic has had a significant impact on Tanzania’s economy— especially the tourism industry. The pandemic has also highlighted the over-reliance of Tanzania’s tourism sector on international visitors. There are opportunities to boost domestic and regional tourism through targeted marketing campaigns and partnerships with African carriers/operators.
Developing supporting infrastructure like hotels, resorts and recreational facilities can further cater to this market. On the sustainability front, the crisis provides an opening to re-orient tourism towards more eco-friendly practices.
Tourism contributes over 25% to Tanzania’s GDP and employs around 1 million people. Border closures and travel restrictions during the pandemic led to a sharp decline in international tourist arrivals.
In 2020, international tourist arrivals fell by over 60%. This severely impacted tourism hotspots like- Zanzibar, Arusha and Serengeti which are heavily reliant on foreign visitors.
Loss of tourism revenues also affected related sectors like- hospitality, transportation, food services etc. Many businesses saw revenues decline by 80-90% during 2020. Around 500,000 jobs were estimated to be at risk in the tourism value chain.
The government offered some tax reliefs and loosened regulations to support the sector. However, the tourism industry is still recovering to pre-pandemic levels. Tourist arrivals and revenues are expected to reach 2018-19 levels only by 2023.