Investment Forum at S!TE 2024 Highlights Key Opportunities in Tanzania’s Tourism Sector

On 12 October 2024, during the investment forum of the Swahili International Tourism Expo (S! TE) 2024, presentations from the Tanzania Investment Centre (TIC) and the Ministry of Natural Resources and Tourism (MNRT) outlined significant investment opportunities and government incentives designed to boost the tourism industry.

Organized by the Ministry of Natural Resources and Tourism and held annually in Dar es Salaam, S!TE gathers global tourism stakeholders, including investors, tour operators, and service providers, to showcase Tanzania’s tourism potential and facilitate partnerships within the sector.

The 2024 edition, held from October 11th to 13th, included an investment forum where government agencies outlined key opportunities and incentives for investors in the tourism sector, focusing on Tanzania’s protected areas and eco-tourism potential.

Investment Opportunities

At the Investment Forum, Daudi Riganda, Manager of Investment Promotion (Foreign) at TIC and Dr. Edward Khoi, Director of Research and Training at  MNRT presented the available investment opportunities and incentives in tourism in the country.

Tanzania’s vast network of protected areas, covering 32% of the country’s landmass, presents numerous opportunities across national parks, nature reserves, and historical sites:

1. National Parks:
   • 172 available sites for tented camps and lodges, with accommodation capacities ranging from 50 to 200 beds per site.
   • Parks such as Nyerere, Tarangire, Serengeti, and Burigi-Chato offer extensive investment potential for eco-friendly tourism infrastructure.
2. Nature Reserves:
   • 66 investment opportunities across reserves like Amani, Magamba, and Mount Rungwe.
   • Available openings include lodges, camps, boardwalks, and adventure tourism infrastructure, such as canopy walks and zip lines.
3. Game Reserves:
   • 15 sites for developing lodges, hotels, and tented camps in reserves such as Mpanga-Kipengere and Wami Mbiki.
4. Historical Sites and Museums:
   • 13 historical sites and 5 museums offer investment potential in lodges, restaurants, cultural centers, and recreational facilities, including sites like Bagamoyo Old Stone Town and Kilwa Kisiwani.
5. Trophy Hunting and Special Wildlife Concessions:
   • 15 hunting blocks and 4 Special Wildlife Investment Concession Areas (SWICA) are available for trophy hunting and wildlife tourism.
6. Additional Sectors:
   • Investment opportunities are also available in tourism-related transport, tour operations, and recreational facilities.

Investment Incentives

The Tanzania Investment Centre highlighted several fiscal and non-fiscal incentives designed to attract both local and foreign investors:

1. Tax exemptions on capital goods, raw materials, and equipment, including zero import duty on hotel and camping equipment.
2. Reduced corporate tax rates (e.g., 20% for tourism projects during the first five years).
3. Free park entry for staff and vehicles during construction phases, along with free entry permits for staff living within parks.
4. Six-month grace period on concession fees after project launch, providing new businesses with breathing room during their initial operations.
5. Unrestricted transferability of funds, allowing for the repatriation of profits, royalties, foreign loan repayments, and other financial flows in freely convertible currency.
6. 98-year security of tenure for foreign investors under the Derivative Right system.
7. Immigration Quotas: An initial quota of 10 expatriates during project implementation, with potential for expansion based on project size.

Tanzania Tourist Arrivals and Investments

For the year ending August 2024, Tanzania recorded 2.026 million tourist arrivals, which represents a 22% increase compared to the previous year. These tourists contributed to a total of US$ 3.534 billion in tourism receipts during the same period, marking an increase of US$ 531.8 million from the previous year.

Regarding foreign direct investment (FDI), Tanzania’s tourism sector has seen significant growth, with FDI inflows increasing by approximately 35%, amounting to US$ 922 million in 2021.