From eco-tourism, adventure tourism to national parks, eco-lodges, and wildlife management, Tanzania’s tourism sector is booming nowadays. Tourism sector in Tanzania generates a significant revenue  which broadly contributes to the economy of the country. Tourism in Tanzania is growing quickly, so are the business opportunities in tourism. 

The tourism sector makes up about 24% of exports and 17.2% of the country’s GDP. Visitor spending is expected to grow significantly this year, reaching TZS 8.7 trillion (€3.25bn), an 8.5% increase from 2023. Employment in the tourism sector is also expected to hit a record 1.5 million. It shows tourism’s importance as a major employer. This blog will explore the key business opportunities in Tanzania’s tourism sector.

Economic Impact of Tourism in Tanzania : Tourism contributes 24% of Tanzania’s exports and 17.2% of its GDP, creating jobs for 1.5 million people.

Key Business Opportunities: Key opportunities include eco-tourism, national parks, and wildlife lodges.

Sustainability and Community Development: Investments in conservation, nature tourism, and community development are growing.

Tanzania’s national parks are some of the most beautiful and diverse in the world. The parks provide great investment opportunities in the growing tourism industry. Tanzania has 22 national parks covering about 15% of the country’s land. There is great potential for tourism-related investments.

Tanzania National Park (TANAPA) is a government-owned organization under the Ministry of Natural Resources and Tourism. It handles creating and managing all national parks in the country. 

Figure: Masai Giraffe in Mikomazi National Park in Tanzania

TANAPA promotes all available investment opportunities. It includes accommodation and tourism activities through print and electronic media. TANAPA selects investment sites when preparing park-specific management plans. 

For example, tourist accommodation investment sites are available in Mkomazi National Park.

Ngorongoro Conservation Area (NCA) is another great option for investment. The 2006 General Management Plan (GMP) for the NCA allows for the development of permanent tented camps in designated areas. Investment options include private ownership, joint ventures, or the Build, Own, and Operate (BOO) model.

For example, Nasera Rock Area. The rock is a unique ecosystem of its own Sanjan plain perched under an old umbrella. It is a great place to walk through the gorge. Visitors can often spot the elusive Klipspringer antelope perched on a rock cliff. Tourists can experience a walking safari with a Masai guide around the area of Nasera Rock.

They can go for a game drive around Lake Ndutu, a bit southwest of Nasera Rock.

Figure: Nasera Rock, Tanzania

Investors can develop eco-friendly lodges, tented camps, or cultural tourism ventures that showcase local Maasai traditions. Additionally, they can invest in guided tours, hiking services, and conservation efforts. Given the increasing interest, it has a great potential for sustainable tourism investment.

The NCAA’s investment policy focuses on maximizing income while minimizing risks. It directs investments into safe, high-yield areas for optimal returns. It also ensures safety and liquidity. The organization invests in real estate to generate rental income, diversify risks, and strengthen its long-term asset base.

The Tanzania Forest Services (TFS) Agency manages forest plantations, beekeeping, and eco-tourism. It is a major commercial center in Tanzania’s southern highlands. 

TFS oversees a wide range of investment opportunities. Opportunities include nature reserves, forest reserves, and forest plantations, offering potential for businesses in these areas.

For example, Amani Forest Nature Reserve. Its rich biodiversity and great natural landscapes offer several investment opportunities, particularly in eco-tourism. Investors can develop sustainable tourism facilities. They can invest in eco-lodges, guided tours, and nature walks. Additionally, there are opportunities in beekeeping, forest conservation, and research activities.

Figure: Amani Nature Reserve, Tanzania

Given the reserve’s unique flora and fauna, there is potential for businesses focusing on environmental education and wildlife photography. These investments support the local economy and contribute to preserving Tanzania’s natural heritage.

Available investment sites in Amani Forest Nature Reserve

There are also business opportunities under the Tanzania Wildlife Management Authority (TAWA). TAWA manages wildlife resources outside national parks and the Ngorongoro Conservation Area. It was established under the Wildlife Conservation Act of 2009. TAWA focuses on the protection, management, and administration of these areas. 

TAWA creates a supportive business environment to build investor confidence and attract new investments in wildlife management areas.

The Authority’s strategic plan guides investment opportunities. It includes priority areas such as the Selous, Burigi/Biharamuro/Kimisi, Mpanga-Kipengele, and Kijereshi Game Reserves. These areas offer potential for eco-tourism, conservation efforts, and sustainable resource use.

Investment opportunities in Matambwe- Selous Game Reserve

Investors can engage in sustainable tourism, conservation projects, and community development. The Authority fosters a business-friendly environment to attract both local and international investors. 

Focusing on enhancing wildlife protection, they also generate profits. These opportunities provide a chance to invest in preserving Tanzania’s natural heritage, and investors can profit while contributing to the economy.

Tanzania’s tourism sector offers a range of business opportunities. These include eco-tourism, adventure tourism, cultural heritage tourism, and beach tourism. There’s also potential for infrastructure development. By 2034, the sector is expected to be worth TZS 30.9 trillion (€11.5m) and create 2.25 million jobs. 

With the sector’s growth, there are significant business opportunities for both local and international investors. Investors can contribute to economic development and job creation. With proper support and implementation, tourism has great potential for Tanzania’s future prosperity.