Tourism maintains lead in Tanzania’s foreign exchange earnings

Dar es Salaam. Travel services have continued to dominate Tanzania’s foreign exchange receipts, underlining the tourism sector’s growing significance in the national economy, according to the Monthly Economic Review for August 2025 released by the Bank of Tanzania (BoT).

Tourism receipts increased by 3.8 percent to $3.872 billion in the year ending July 2025, buoyed by a rise in international arrivals to 2,249,387 from 2,026,378 in the preceding year.

The growth in receipts reinforced the sector’s position as the country’s top foreign exchange earner.

Tourism surpassed gold exports to reach $3.92 billion in earnings during the year ending May 2025.

The report notes that the sector’s performance pushed service receipts to $7.176 billion, compared with $6.643 billion in the year ending July 2024.

“In total, exports of goods and services surged by 14 percent to $16.66 billion during the year ending July 2025, reflecting steady growth in both merchandise and service exports,” reads the BoT report in part.

Exports of goods alone rose by 19.7 percent to $9.48 billion, driven by higher earnings from gold, cashew nuts, horticultural products, coffee, and cereals, particularly maize and rice.

Gold exports increased to $3.98 billion from $3.15 billion, aided by favourable global market prices and central bank purchases.

Traditional exports grew to $1.39 billion compared with $1.07 billion in the corresponding period last year, mainly supported by cashew nuts and coffee, with gains attributed to both price and volume effects.

Meanwhile, cereal exports more than doubled to $382.3 million, dominated by maize and rice, on the back of rising demand from neighbouring countries.

However, on a monthly basis, the report shows that goods exports fell to $551.3 million in July 2025 from $847.1 million in July 2024, reflecting normal fluctuations in export activity.

The BoT report underscores that the tourism sector remains a cornerstone of Tanzania’s external sector performance, continuing to underpin the country’s balance of payments amid rising global travel demand.