- Tanzania’s tourism industry is making a remarkable comeback nearly four years after its revenues plummeted due to the COVID-19 pandemic.
- The tourism sector could potentially generate up to Sh3.38 trillion in additional revenue in the next financial year, according to a senior official.
- Enhancing the business climate and expanding projects are some of the factors that could greatly boost revenue collection.
The Principal Secretary in the Ministry of State, Office of the President, Finance and Planning, Dr Juma Maliki Akili, disclosed this at the ‘2024/2025 Economy and Budget annual forum’ for stakeholders from local government and non-governmental organisations (NGOs).
While addressing the gathering at the Sheikh Idriss Abdulwakil Multipurpose Hall, Dr Akili explained that the revenue collection until the end of the current financial year, which ends in June this year, is projected to hit Sh2.38 trillion.
He added that the figure could significantly increase as a result of factors such as enhanced dedication from stakeholders in tax compliance and encouragement of voluntary tax contributions, intensified efforts by the Zanzibar Revenue Authority (ZRA) and Tanzania Revenue Authority (TRA), along with robust collaboration between the authorities and principal institutions.
“We predict to have economic growth of 7.2 per cent next year, and our revenue collection may increase to Sh3.38 trillion, while the number of tourists will increase to 829,000 next year from 638,000, ending the financial year,” Dr Akili said, according to Daily News.
Dr Akili expressed confidence that the target would be achieved, stating that in 2019, economic growth slowed down due to COVID-19 and that good planning has helped Zanzibar recover.
According to him, increasing knowledge about tax among ZRA and TRA staff, improving the business/investment environment, increasing projects, and increasing production from the blue economy are added advantages to an admirable bright future for Zanzibar.
Tanzania’s tourism industry is making a remarkable comeback nearly four years after its revenues plummeted due to the COVID-19 pandemic.
Last year, data from the Bank of Tanzania revealed that tourism has staged an impressive recovery, contributing $2.99 billion to foreign exchange earnings in July 2023, compared to $1.95 billion in July 2022.
The bank also noted that this resurgence in tourism and increased earnings from gold have played a pivotal role in boosting Tanzania’s service earnings to over $5 billion for the first time in its history.