Tourism retains lead in services export earnings

DAR ES SALAAM: TOURISM receipts rose by 1.7 per cent in the period ending August this year, maintaining the sector’s position as largest contributor to services earnings.

According to the Bank of Tanzania’s (BoT) latest Monthly Economic Review, the receipts increased to 4,389.7 million US dollars from 4,314.7 million US dollars recorded in the corresponding period last year.

The total services receipts increased by 11.7 per cent to 8,255.4 million US dollars from 7,389.8 million US dollars in the year ending August last year supported by stronger earnings from transport services.

Transport receipts recorded the strongest growth among the three categories, rising by 26.4 per cent to 3,303.3 million US dollars from 2,612.5 million US dollars in the corresponding period last year.

The performance highlights the growing contribution of transport and logistics to Tanzania’s foreign exchange earnings, supported by activities linked to freight and regional transit trade.

The increase presents opportunities for businesses in cargo handling, warehousing, logistics and related services as Tanzania strengthens its position as a gateway for neighbouring landlocked countries.

Investment in ports, railways, roads and other transport infrastructure could further improve cargo movement, reduce logistical bottlenecks and enhance the competitiveness of the country’s trade corridors.

Despite the slower growth in tourism receipts, the sector remains a major source of foreign exchange. The wildlife attractions, national parks, beaches and cultural heritage continue to offer opportunities to attract international visitors and increase tourism spending.

Improving accommodation facilities, transport connections and visitor services could help strengthen the sector’s contribution to the economy.

Meanwhile, receipts from other services increased to 562.4 million US dollars from 462.6 million US dollars in the year ending August 2025, representing growth of 21.6 per cent.

However, the earnings remained below the 592.4 million US dollars recorded in the corresponding period in 2024.

The overall performance underscores the importance of tourism and transport in supporting Tanzania’s external sector, with tourism remaining the largest source of services earnings while transport delivers faster growth.

Strengthening infrastructure, improving service quality and expanding market opportunities could help sustain foreign exchange inflows and support economic growth.

The continued growth of services receipts also underscores the potential for Tanzania to diversify its foreign exchange sources beyond traditional merchandise exports.

Sustained investment in transport infrastructure, tourism facilities and other service industries could help improve competitiveness, expand regional trade and strengthen the country’s capacity to generate foreign currency.

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