Africa -  Tanzania - Dar es Salaam

Tanzania has a booming economy and was Africa’s second fastest growing country in 2016 with a GDP growth of 6.9%, according to the World Bank, and a forecasted growth of 6.4% over the next five years. Tourist arrivals increased by 12.9% compared to 2015, as indicated by the Minister of Natural Resources and Tourism of Tanzania, Prof. Jumanne Maghembe.

PresidentJohn Magufuli, elected in 2015, has been known to be a rigorous politician regarding anti-corruption and anti-waste measures. His forceful leadership style became even more visible in 2016: cancellation of major celebrations, ban of overseas travel for civil servants, eviction of corrupt officials and unannounced visits to various government bodies were just a few of his actions. In addition, the government imposed 18% VAT on services such as tour guiding, game driving, water safaris, animal or bird watching, park fees and ground transport services. While this aims to increase the tax base, it will make the Tanzania tourism package more expensive. All of which came at a surprise for some travellers and investors and a feeling of hesitation and uncertainty might have risen in 2016, explaining a slight drop in amount of rooms sold in Dar es Salaam.

However, in 2016 the president was working with the private sector mainly in Dar es Salaam to improve the country’s business environment and speeding up economic development, which seems to bear fruits. In terms of “Ease of Doing Business” (World Bank report 2017) the city has made enormous improvements mainly due to reforms over the last year regarding business licensing, easy registration of businesses, people’s registration and land reforms. Furthermore, Etihad Airways announced that it has entered into a codeshare agreement with Precision Air, Tanzania’s leading domestic airline and the pipeline built by Uganda to transport crude oil through Tanzania is expected to be completed by June 2020, which shows interest in the country and focus on a prosperous future. Occupancy levels in Dar es Salaam declined by about 6% and RevPAR decreased by 10.5% compared to the year before. Even though numbers are expected to drop even more in 2017, the country’s future looks bright as there are still large gas reserves and a constant low inflation rate.

Despite major reforms and a new and very strict president, big international hotel brands are not hesitating: Marriott planned to open a Four Points by Sheraton and an Element by Westin in Dar es Salaam. Other hotels including the brands Rotana and City Lodge are supposed to open between 2017 and 2020 altogether adding about 1,400 keys to the market.

Exchange Rate:

Exchange Rate 2015 Exchange Rate 2016 Change 2015/2016 Exchange Rate 2017 Change 2016/2017
US$ 1 1 0
Tanzania - Dar es Salaam 0.00048 0.00045 -6.3% 0.00045 0.0%

Change In Value For Market:

Significant Value Increase: Greater than +10%
Moderate Value Increase: Between +3% and +10%
Stable Values: Between -3% and +3%
Moderate Value Decline: Between -3% and -10%
Significant Value Decline: Less than -10%

Tanzania - Dar es Salaam RevPAR Change

Tanzania - Dar es Salaam RevPAR

Year RevPAR
2010 72.23
2011 86.48
2012 93.98
2013 95.87
2014 91.22
2015 77.17
2016 69.09
2017 58.11

For more information, please contact:

Tim Smith, MRICS
[email protected]
  • +27 797 342296 (w)
Laura Dutrieux
[email protected]
Sofie Otto
[email protected]