Tanzania Cuts Tourism Licence Fees by Up to 80% to Boost Private Investment

Tanzania has cut tourism business license fees by up to 80% and eliminated operational charges to accelerate private sector investment in Tanzania’s tourism sector.

This was revealed on 19th May 2025 by the Minister for Natural Resources and Tourism, Dr. Pindi Chana, while presenting the 2025/26 budget estimates for the Ministry to the Parliament in Dodoma.

The revised licensed fees are categorized based on hotel star ratings and are significantly lower than previous rates.

License fees for five-star tourism accommodations have been reduced from USD 2,500 to USD 1,500.

Four-star hotels will pay USD 1,000 instead of USD 2,000, while three-star establishments will pay USD 500, down from USD 1,500.

Similarly, two-star hotels will pay USD 300 instead of USD 1,200, and one-star hotels will pay USD 200, down from USD 1,000.

Also, license fees for mountain climbing agents have been reduced from approximately TZS 5.3 million (USD 2,000) to TZS 3 million (approximately 1,100 USD), and the annual Tanzania Tourism Business License (TTBL) fee for tour guides has been cut from USD 50 (approximately TZS 130,000) to TZS 35,000 (approximately USD 12).

These fees are now payable in Tanzanian Shillings, making the payment process more convenient for local operators.

Also, tour guides holding valid licenses will no longer be required to pay park entry fees when entering with guests.

Speaking at the parliament, Hon Pindi Chana stated, “The ministry and the government at large will continue to collaborate and work closely with the private sector to enhance the efficiency of the conservation and tourism sectors through sectoral meetings under the Tanzania National Business Council (TNBC), as well as regular stakeholder meetings.”

Tanzania’s Tourism Sector Revenues

As of March 2025, Tanzania collected a total of TZS 877.387 billion from the tourism sector, equivalent to 90.56% of the annual target of TZS 968.8 billion for the fiscal year 2024/25.

By 2024, revenues from international tourism activities in Tanzania rose from USD 1.3 billion in 2021 to USD 3.9 billion, reflecting a 200% increase.

Domestic tourism revenues also grew substantially, from TZS 46.3 billion in 2021 to TZS 209.8 billion in 2024, marking a 353.1% rise.

This performance positioned Tanzania 9th globally and 3rd in Africa in terms of the highest growth in tourism revenue compared to the pre-COVID-19 period.