Tanzania outshines Kenya in tourism earnings

DAR ES SALAAM: TANZANIA may attract fewer international tourists than Kenya, but it is generating substantially more tourism revenue, underlining the success of its strategy to attract higher-spending visitors and position itself as one of Africa’s highest-yield destinations.

Official tourism data show Kenya welcomed 2.70 million international visitors in 2025, compared with Tanzania’s 2.29 million.

Yet Tanzania generated 4.41 billion US dollars in tourism earnings against Kenya’s 3.30 billion US dollars, demonstrating that higher visitor spending more than compensated for the difference in arrivals. The 2025 figures are not an isolated phenomenon.

Tourism earnings data show Tanzania has consistently outperformed Kenya since the industry’s recovery from the Covid-19 pandemic, with tourism receipts exceeding those of its northern neighbour every year from 2021 to 2025. The pattern mirrors the pre-pandemic period, when Tanzania also generated higher tourism earnings between 2017 and 2019.

The only exception came in 2020, when the Covid-19 pandemic brought global travel to a standstill.

Kenya temporarily overtook Tanzania in tourism earnings as international travel restrictions, border closures and the collapse of long-haul tourism hit Tanzania’s leisuredependent tourism industry particularly hard.

The figures suggest Tanzania’s competitive advantage lies not in attracting the largest number of visitors but in increasing the economic value generated by each arrival.

The consistency of Tanzania’s performance raises a broader question: why does a country attracting fewer international visitors consistently earn more from tourism than one welcoming significantly larger numbers? The answer lies in the distinct tourism models pursued by the two East African neighbours.

While Kenya has developed its tourism industry around high visitor volumes, supported by its role as East Africa’s leading aviation, business and conference hub, Tanzania has increasingly focused on attracting higher-spending leisure travellers seeking premium wildlife, beach and cultural experiences.

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The latest International Visitors’ Exit Survey (IVES) 2025 in Tanzania suggests the strategy is paying dividends.

Tourism earnings rose 13 per cent in 2025, nearly double the 7.1 per cent increase in international arrivals, as average visitor spending climbed to 289 US dollars per person per night on mainland Tanzania from 243 US dollars in 2024.

In other words, tourism revenue expanded almost twice as fast as visitor numbers. In Zanzibar, average daily expenditure rose to 274 US dollars from 251 US dollars over the same period.

The figures suggest Tanzania’s competitive advantage lies not in attracting the largest number of visitors but in increasing the economic value generated by each arrival.

With international tourist arrivals rising modestly while spending per visitor accelerated sharply, the country’s tourism strategy appears to be shifting from a volume-driven model towards one centred on value creation.

Holidaymakers continued to drive Tanzania’s tourism industry, generating 4.23 billion US dollars, or 95.9 per cent, of the country’s total tourism earnings in 2025.

The survey also found that visitors travelling on package tours accounted for 75.2 per cent of tourism receipts, underscoring the country’s strength in organised safari and beach holidays that typically command higher spending than independent or short-stay travel.

High-value niche tourism products also contributed significantly to Tanzania’s strong financial performance.

Hunting tourists recorded the highest average daily expenditure at 711 US dollars per person, followed by cultural tourists at 537 US dollars and wildlife safari visitors at 452 US dollars.

The figures highlight the growing contribution of specialised tourism segments that generate substantial revenue despite attracting relatively small numbers of visitors.

The composition of Tanzania’s source markets further reinforces its high-value tourism strategy.

The United States remained the country’s largest source market in 2025, accounting for 12.4 per cent of international arrivals, followed by Italy, France, Kenya and the United Kingdom.

Long-haul visitors from North America and Europe typically stay longer and spend considerably more than regional travellers, contributing disproportionately to tourism earnings.

Taken together, the findings suggest that Tanzania’s tourism strategy is increasingly centred on maximising value rather than visitor numbers.

While Kenya continues to benefit from higher international arrivals, Tanzania’s emphasis on premium leisure tourism, longer stays and higher visitor spending has enabled it to generate greater economic returns from a smaller visitor base.

For Tanzania, the challenge now is to sustain this competitive advantage while expanding visitor numbers without compromising the quality of its tourism product.

Continued investment in transport infrastructure, conservation, destination marketing, hospitality services and tourism diversification will be critical to attracting higherspending visitors and extending their length of stay.

Equally important is growing underdeveloped segments such as meetings, incentives, conferences and exhibitions (MICE), cruise tourism and cultural tourism to broaden revenue streams and reduce reliance on traditional safari and beach holidays.

The Tanzania-Kenya comparison demonstrates that success in modern tourism is no longer measured solely by the number of visitors crossing the border.

As destinations compete for travellers with greater spending power, the real measure of performance is increasingly the economic value generated by each arrival.

Tanzania’s recent performance suggests that a strategy centred on quality experiences and higher visitor spending can deliver substantial economic returns, even with fewer international arrivals.