Tanzania’s economic landscape has undergone a significant transformation, with the tourism sector officially outperform gold as the nation’s primary source of foreign exchange. This pivotal shift, confirmed by the Bank of Tanzania’s (BoT) latest Monthly Economic Review, underscores a successful diversification strategy and a robust recovery within the tourism industry.
The year ending May 2025, tourism revenues soared to $3.92 billion, a substantial increase from $3.63 billion in the preceding year. This growth was fueled by a notable rise in international arrivals, reaching 2,170,360, and narrowly surpassed gold exports, which stood at $3.83 billion during the same period. This development highlights the increasing efficacy of governmental policies and targeted investments in the tourism sector, while simultaneously prompting a re-evaluation of the gold sector’s role and its potential for enhanced value addition.
In 2024, Europe remained the largest source of tourists to the east African Nation, accounting for
39.6% of arrivals, followed by North America at 18.3% and Asia at 14.2%. African tourists constituted 21.7% of the total arrivals.
Historically, gold has been a foundational pillar for the East African country’s foreign exchange earnings, contributing substantially to the national economy; in 2019, gold exports alone accounted for $2.2 billion, representing over 90% of the country’s total mineral exports. Even as recently as 2022/2023, gold exports were valued at $2.86 billion, further increasing to $2.95 billion in 2023. This long-standing dominance positioned the mining sector as a critical driver of the nation’s foreign currency reserves.
In 2024, Europe remained the largest source of tourists to the east African Nation, accounting for
39.6% of arrivals, followed by North America at 18.3% and Asia at 14.2%. African tourists constituted 21.7% of the total arrivals.
However, the latest data from the Bank of Tanzania signifies a historic turning point, with tourism now holding the premier position, underscoring Tanzania’s evolving economic structure and its increasing potential for diversified and sustainable growth. By leveraging its rich natural and cultural assets, the nation is successfully pivoting towards a broader base for economic prosperity, thereby reducing its historical over-reliance on a single commodity. Looking at calendar year data, tourist arrivals increased by 24.3% to a record-breaking 1,808,205 in 2023 from 1,454,920 in 2022, with revenues for 2023 reaching a record-high. The tourism sector has shown an extraordinary recovery from the severe impact of the COVID-19 pandemic, which saw revenues plummet to $1 billion in 2020 from a peak of $2.6 billion in 2019. By early 2025, Tanzania had already surpassed its target of 5 million international visitors for the 2025 fiscal year, reaching 5.3 million by April 2025, three months ahead of schedule.
