Tourism Outshines Gold as Tanzania's top Foreign Currency Earner



By ADAM IHUCHA -- The tourism industry has emerged as Tanzania’s top foreign currency earner and export sector, outshining the precious metal --gold, latest data shows.

Fresh figures from the central bank indicate that the natural resource-rich country raked in $1.973 billion from tourism in the year ended June 2014, up from $1.757 billion earned in the previous corresponding period. 

This is equivalent to 12.28 per cent tourism growth in the face of world economic volatile, bolstering its position as a sleeping giant industry of the economy in Tanzania.

Under the stewardship of Natural Resources and Tourism Minister, Lazaro Nyalandu, 1,095,884 tourists visited Tanzania with Serengeti National Park posting the highest number of non-resident visitors, at 179,282, followed by Lake Manyara at 123,502. Tarangire National Park registered 109,575 visitors while Mount Kilimanjaro attracted 50,319.

Acting assistant director of tourism at the ministry, Wilfred Msemo, cited wildlife parks, which attracted most non-resident visitors from Africa, Asia, Europe and the Americas, as the top tourist attractions.

Fall in global prices
“We usually compile figures for a calendar year, so the latest data that we have are those ending December 2013,” said Mr Msemo.

Gold, which used to be the country’s primary foreign exchange earner, brought home $1.658 billion in the period under review. But, according to Bank of Tanzania data, that was a 14.45 per cent decline from the $1.898 billion recorded in the year to June 2013.

The decline was attributed mainly to a fall in the price of the precious metal in the world market.

The director for mineral production and export monitoring at the Tanzania Mineral Audit Agency, Liberatus Chizuzu, however said that despite the drop in earnings Tanzania’s future prospects in the mineral sector are good because new players are emerging.

“The country now has small-scale miners coming up who will boost the sector — for example, Ashanti, Sunshine in Chuna and Garland Mining,” Mr Chizuzu said.

Adding that Bulyanhulu Gold Mine was upgrading its processing plants so as to claim its tailings, which will help boost production, Mr Chizuzu said that gold processers reprocessing oil tailings make a huge contribution to the sector.

Target achievable
However, according to the BoT’s Monthly Economic Review for July 2014, which covers the year ending June 2014, gold still dominated non-traditional exports, though at a smaller share of 41.0 per cent. In the year ended June 2013, gold accounted for 49.0 per cent of Tanzania’s non-traditional exports.

Minister  Nyalandu is upbeat that this year’s tourism earnings target would be achieved notwithstanding the international tourism market being subdued because of terrorist attacks in the East African region. 

Should the global economy remain steady, Tanzania hopes the number of tourist arrivals will hit 1.2 million this year, up from a million in 2013, earning the economy close to $2.25 billion from the $1.88 billion made last year.

According to the five-year marketing blueprint rolled out in 2013, Tanzania anticipates to welcome two million tourists by 2017, boosting the revenue from the current $1.88 billion to nearly $3.8 billion. 

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