Investing in Tanzania's tourism

Investing in Tanzania's tourism sector presents various opportunities, supported by the government's efforts to enhance the industry. Tanzania is seeking private-sector investment to meet the rising demand from international and domestic tourists. The country offers several avenues for investment, including developing hotels, lodges, and resorts, particularly in areas like the Serengeti, Zanzibar, and along the southern coastline. Additionally, there is room for investments in tourism-related infrastructure such as transportation, airports, and cultural or recreational facilities.

The government actively promotes niche markets like eco-tourism, beach, and business tourism, with new projects such as a major meeting facility in Dar es Salaam. Investors benefit from incentives such as tax breaks and streamlined business processes to make the sector more attractive. The Tanzanian tourism sector contributed $7.8 billion to the economy in 2023 and is projected to grow substantially in the coming years, underlining its potential as a profitable investment

Things Required

To invest in the tourism sector in Tanzania, the Tanzania Investment Centre (TIC) provides a streamlined process to guide both local and foreign investors. Below is a general outline of the steps:

1. Register Your Business: The first step involves registering your business with the Business Registrations and Licensing Agency (BRELA). You'll need a company name and relevant documentation.
2. Investment Certificate: Apply for a Certificate of Incentives from the TIC, which provides benefits such as tax exemptions and other fiscal incentives for qualifying projects.
3. Project Proposal: Submit a comprehensive project proposal, detailing the type of tourism project (e.g., hotel, lodge, or tour operations) and its feasibility.
4. Environmental Impact Assessment (EIA): Conduct an EIA for tourism projects to ensure compliance with environmental regulations.
5. Tax Identification Number (TIN) and VAT Registration: Register for a TIN with the Tanzania Revenue Authority (TRA) and, if applicable, for Value Added Tax (VAT).
6. Secure Land and Permits: Depending on the project's location, obtain land through the Tanzania Land Bank or other channels. You'll also need relevant construction and operational permits.
7. Compliance with Tourism Regulations: Adhere to the guidelines of the Tanzania Tourist Board (TTB) or the Ministry of Natural Resources and Tourism to ensure your operations meet industry standards.
8. Implementation and Monitoring: Once approved, implement the project under the supervision of TIC, which also assists in resolving any challenges during the investment period​