As Tanzania navigates the post-pandemic landscape, the nation’s tourism sector stands at a pivotal point. The World Bank’s 16th Tanzania Economic Update titled “Transforming Tourism: Toward a Sustainable, Resilient, and Inclusive Sector” outlines both the challenges faced by this sector during the COVID-19 pandemic and the potential pathways for its transformation to foster long-term inclusive growth, alongside climate adaptation and mitigation efforts. The pandemic brought a near-halt to global tourism activities, severely impacting Tanzania’s tourism industry. In 2020, the sector saw a steep decline in economic activity, leading to significant job losses and business closures. This downturn had cascading effects on related sectors and the broader economy. While there has been a partial recovery, the industry’s business revenues and government tax collections remain below pre-pandemic levels.
Albert Zeufack, World Bank Africa Chief Economist, highlights the importance of proactive and decisive measures to protect populations, strengthen health systems, and support economic transformation in weathering such crises. The report notes that Tanzania’s GDP growth slowed to an estimated 2.0% in 2020, with a more pronounced impact on Zanzibar, where GDP growth decreased to an estimated 1.3% due to the collapse of tourism. Surveys conducted by the World Bank in collaboration with Tanzania’s National Bureau of Statistics from June 2020 to March 2021 indicate a widespread business slowdown and reduced job creation, particularly in export-oriented sectors like tourism and manufacturing. The economic downturn has been linked to an increase in poverty, with an estimated 600,000 Tanzanians affected.
Bill Battaile, World Bank Lead Economist for Tanzania, emphasizes the importance of supporting the tourism sector’s recovery and broader private sector development to improve household welfare, attract investments, and stimulate an employment-driven recovery. The World Bank’s economic update suggests several priorities for a sustainable recovery of Tanzania’s tourism sector. These include establishing an efficient, reliable, and transparent business environment; enhancing tourism information management systems; providing affordable financial support to businesses across the value chain; strengthening adherence to health and safety protocols and ensuring data transparency; and promoting nature-based landscape and seascape management through co-investment and partnership arrangements. These measures aim to not only revitalize the tourism industry but also to position it as a key driver of Tanzania’s economic growth and resilience.
