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BMI View: Tanzania's tourism market offers significant growth potential, with the country further
developing its reputation as a popular safari destination. Investment by the government in infrastructure is
expected to help to support industry growth, while arrivals are set to steadily increase over our five-year
forecast period. We do, however, note that some downside risks are present due to the introduction of VAT
on all tourism services, which risks reducing arrivals figures.
Key Updates And Forecasts
? Inbound tourism is forecast to grow positively in 2016, with arrivals increasing by 6.4% to reach over
1.3mn. Growth will be positive through the forecast period, with total arrivals projected to reach nearly
1.6mn by 2020.
? The Tanzanian government is investing funds and resources into transport infrastructure, which is
expected to boost the tourism industry and increase capacity for the higher number of arrivals.
? The hotel sector is experiencing a healthy amount of investment from international brands, though
domestic hotel chains remain scarce and underdeveloped, with sub-standard mid-market options.