According to the Bank of Tanzania’s (BoT) Monthly Economic Review for June 2025, tourism generated $3.92 billion in earnings during the year ending May 2025
Dar es Salaam. Tourism has officially surpassed gold as Tanzania’s leading foreign exchange earner, with revenues from the sector approaching the $4 billion mark, a historic milestone in the country’s post-pandemic economic recovery.
According to the Bank of Tanzania’s (BoT) Monthly Economic Review for June 2025, tourism generated $3.92 billion in earnings during the year ending May 2025.
This is a rise from $3.63 billion in the previous year and represents 55.1 percent of all service-related receipts.
The earnings placed tourism just ahead of gold, which brought in $3.83 billion over the same period, highlighting the sector’s growing dominance in Tanzania’s external trade landscape.
“The increase in travel receipts was largely attributed to a rise in international tourist arrivals, which increased to 2,170,360 from 1,961,870 over the same period,” noted the BoT.
Analysts and stakeholders view this development as a positive shift that affirms the resilience and strategic importance of the tourism sector.
The government has since taken further steps to support the industry, including targeted policy adjustments aimed at easing operational constraints.
One of the most significant measures came on July 8, 2025, when the BoT issued a formal exemption to tour operators from select provisions of the Foreign Exchange Use Regulations of 2025.
The exemption, granted in response to sustained lobbying by the Tanzania Association of Tour Operators (Tato), acknowledges the unique requirements of an industry now responsible for bringing in the largest share of foreign exchange.
According to the BoT’s letter, tour companies will be allowed to use foreign currency in two key areas: when paying for goods and services on behalf of non-resident tourists, and when purchasing specialised tourism vehicles from domestic suppliers.
This decision comes in the wake of the BoT’s public notice issued on May 2, 2025, which reaffirmed that all transactions and price quotations within Tanzania must be made in Tanzanian shillings.
The regulations, formalised under Government Notice No. 198, were aimed at reducing dollarisation and supporting the stability of the national currency amid heightened foreign exchange demand.
While the rules imposed sweeping restrictions, they also allowed for discretionary exemptions, an opening that Tato used to present its case for sector-specific relief.
Tato chairman, Mr Willy Chambulo, welcomed the BoT’s decision, saying it demonstrates a pragmatic understanding of how the tourism sector operates.
“We thank the government for recognising the specific needs of our industry,” he said.
“The foreign currency we collect is paid by tourists well in advance and is used to coordinate accommodation, transport, and other services. Without this exemption, the entire tourism value chain would have faced disruption.”
He warned that enforcing an exclusive requirement to transact in Tanzanian shillings would have undermined bookings and complicated travel planning, especially for international visitors who prefer dealing in foreign currency.
“We were never trying to bypass monetary regulations,” he added.
“We understand the pressure on the country’s forex reserves. But as tour operators, we are net contributors of foreign currency. Every tourist we serve supports the economy and boosts our reserves.”
Nonetheless, the BoT maintained that the Tanzanian shilling remains the sole legal tender.
Tour operators must still accept payment in shillings if a non-resident tourist opts to pay using local currency.
The original notice had also encouraged tourists to use Bureaux de Change and commercial banks for currency conversion, and to embrace digital payment channels such as cards and mobile money.
These provisions remain in place and are part of broader reforms to modernise Tanzania’s foreign exchange regime.
By granting targeted exemptions that acknowledge the realities of tourism operations while upholding regulatory integrity, the BoT’s move signals a balanced approach to managing one of Tanzania’s most vital export sectors.
