TANZANIA’S tourism sector is poised for significant growth, with ambitious plans to generate Sh3.38 trillion ($1.3bn) in revenue for the 2024/2025 fiscal year, a notable increase from the current TSh2.38 trillion. Dr. Juma Maliki Akili, Principal Secretary in the Ministry of State, shared this projection at the ‘2024/2025 Economy and Budget annual forum,’ highlighting key factors driving this anticipated surge.
Dr. Akili emphasised the role of enhanced dedication to tax compliance and encouragement of voluntary tax contributions. He highlighted intensified efforts by the Zanzibar Revenue Authority (ZRA) and Tanzania Revenue Authority (TRA), along with robust collaboration between authorities and principal institutions, as contributing factors.
‘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,’ stated Dr. Akili, as reported by the Daily News.
Confident in achieving the set target, Dr. Akili attributed Zanzibar’s recovery from the economic slowdown caused by Covid-19 to effective planning. He outlined additional advantages, including increased knowledge about tax among ZRA and TRA staff, an improved business/investment environment, expanding projects, and growing production from the blue economy.
Tanzania’s tourism industry is on a remarkable comeback, witnessing substantial recovery nearly four years after the Covid-19 pandemic impacted revenues. Recent data from the Bank of Tanzania revealed impressive tourism growth, contributing $2.99bn to foreign exchange earnings in July 2023, compared to $1.95bn in July 2022. This resurgence, coupled with increased earnings from gold, played a pivotal role in propelling Tanzania’s service earnings to over $5bn for the first time in its history.
