Tanzania. In a bold move to enhance private sector engagement and ease the cost of doing business in tourism, the Government of Tanzania has significantly reduced tourism license fees—cutting them by as much as 80%—and removed operational charges across the board. The changes, announced on May 19, 2025, by Minister for Natural Resources and Tourism Dr. Pindi Chana during the national budget presentation, are part of broader reforms aimed at accelerating investment in the sector.
The revised fee structure, now payable in Tanzanian Shillings to simplify compliance for local stakeholders, is expected to benefit a wide range of tourism operators, including hotels, tour guides, and mountain climbing agencies. The new rates reflect a categorization based on hotel star ratings and offer substantial relief compared to the previous structure. For example:
- Five-star hotels will now pay $1,500, down from $2,500.
- Four-star hotels will be charged $1,000 instead of $2,000.
- Three-star hotels drop from $1,500 to just $500.
- Two-star hotels will pay $300, down from $1,200.
- One-star hotels now owe $200 instead of $1,000.
Mountain climbing companies will see their license fees reduced from around TZS 5.3 million to TZS 3 million (approximately $1,100), while the annual licensing cost for tour guides has dropped from roughly TZS 130,000 ($50) to just TZS 35,000 (about $12). In a further effort to empower tour professionals, licensed guides will also be exempt from park entrance fees when accompanying tourists, lowering operating costs and encouraging more local involvement.
Minister Chana emphasized that these reforms are part of a collaborative government effort to strengthen tourism and conservation, in partnership with the private sector and through platforms like the Tanzania National Business Council (TNBC). Regular dialogue with stakeholders will continue to ensure ongoing improvement and accountability in the sector.
Strong Sector Performance and Revenue Growth
As of March 2025, the tourism sector had already generated TZS 877.4 billion—achieving 90.56% of its annual revenue target of TZS 968.8 billion. International tourism revenues have seen a threefold jump, climbing from $1.3 billion in 2021 to $3.9 billion in 2024. Meanwhile, domestic tourism also surged, with income increasing from TZS 46.3 billion in 2021 to TZS 209.8 billion in 2024—a rise of over 350%.
Thanks to these impressive gains, Tanzania was ranked 9th globally and 3rd in Africa for tourism revenue growth in the post-COVID era, according to the UN World Tourism Organization (UN Tourism).
With more competitive licensing costs and a rising global profile, Tanzania is positioning itself as a welcoming and investment-friendly destination for tourism development. The fee reductions are expected to unlock further opportunities for entrepreneurs, SMEs, and international investors to contribute to Tanzania’s vibrant and fast-growing tourism economy.
