Travel & Tourism - Tanzania | Statista Market Forecast

The Travel & Tourism market in Tanzania is expected to see a significant rise in revenue, with projections indicating a revenue of US$767.00m in 2024.
The market is expected to maintain a steady annual growth rate (CAGR 2024-2029) of 5.03%, which will result in a projected market volume of US$980.10m by 2029.
The Hotels market is predicted to be the largest market, with a projected market volume of US$347.00m in 2024.
By 2029, the number of users in this market is expected to reach 12.49m users.
The user penetration in the Hotels market is expected to rise from 13.1% in 2024 to 22.1% by 2029.
Additionally, the average revenue per user (ARPU) is projected to be US$84.43.
In terms of online sales, it is expected that 69% of the total revenue will be generated through online sales by 2029.
It is worth noting that when compared globally, United States is predicted to generate the most revenue in the Travel & Tourism market, with a projected revenue of US$214bn in 2024.
Tanzania's Travel & Tourism market is experiencing a rise in ecotourism, with visitors flocking to explore the country's diverse wildlife and natural landscapes.

Definition:

The Travel & Tourism market encompasses a diverse range of accommodation services catering to the needs and preferences of travelers. This dynamic market includes package holidays, hotel accommodations, private vacation rentals, camping experiences, and cruises.

Structure:

The market consists of five further markets.

The Cruises market covers multi-day vacation trips on a cruise ship. The Cruises market encompasses exclusively passenger ticket revenues.
The Vacation Rentals market comprises of private accommodation bookings which includes private holiday homes and houses as well as short-term rental of private rooms or flats.
The Hotels market includes stays in hotels and professionally run guest houses.
The Package Holidays market comprises of travel deals that normally contain travel and accommodation sold for one price, although optional further provisions can be included such as catering and tourist services.
The Camping market includes bookings at camping sites for pitches using tents, campervans, or trailers. These can be associated with big chains or privately managed campsites.

Additional Information:

The main performance indicators of the Travel & Tourism market are revenues, average revenue per user (ARPU), users and user penetration rates. Additionally, online and offline sales channel shares display the distribution of online and offline bookings. The ARPU refers to the average revenue one user generates per year while the revenue represents the total booking volume. Revenues are generated through both online and offline sales channels and include exclusively B2C revenues and users for the above-mentioned markets. Users represent the aggregated number of guests. Each user is only counted once per year. Additional definitions for each market can be found within the respective market pages.

The booking volume includes all booked travels made by users from the selected region, independent of the departure and arrival. The scope includes domestic and outbound travel.

Prominent players in this sector include online travel agencies (OTAs) like Expedia and Opodo, as well as tour operators such as TUI. Specialized platforms like Hotels.com, Booking.com, and Airbnb facilitate the online booking of hotels and private accommodations, contributing significantly to the market's vibrancy.

For further information on the data displayed, refer to the info button right next to each box.

Bookings directly via the website of the service provider, travel agencies, online travel agencies (OTAs) or telephone

Business trips
Other forms of trips (e.g. excursions, etc.)

The Travel & Tourism market in Tanzania is experiencing significant growth and development.

Customer preferences: Tourists visiting Tanzania are increasingly seeking unique and authentic experiences, driving the demand for eco-tourism and cultural tourism. Travelers are drawn to Tanzania's diverse wildlife, stunning landscapes, and rich cultural heritage, leading to a rise in experiential travel activities such as safari tours, mountain climbing, and cultural immersions.

Trends in the market: One notable trend in the Tanzanian travel market is the growing popularity of sustainable tourism practices. With an increased global focus on environmental conservation and responsible travel, Tanzania has seen a rise in eco-friendly lodges, wildlife conservation projects, and community-based tourism initiatives. Additionally, the country's efforts to improve infrastructure and promote tourism outside of traditional hotspots like Zanzibar and Serengeti have contributed to a more diversified tourism landscape.

Local special circumstances: Tanzania's unique selling points, such as being home to the majestic Mount Kilimanjaro, the Serengeti National Park, and the idyllic islands of Zanzibar, set it apart as a prime tourist destination in East Africa. The country's rich cultural tapestry, including over 120 ethnic groups, offers visitors a chance to engage with diverse traditions and customs. Moreover, Tanzania's stable political environment and commitment to wildlife conservation make it an attractive and safe destination for travelers.

Underlying macroeconomic factors: The Tanzanian government's focus on promoting the travel and tourism sector as a key driver of economic growth has led to investments in infrastructure development, marketing campaigns, and policy reforms to attract more tourists. The country's strategic location in East Africa, with easy access to regional markets and international air travel hubs, further enhances its position as a competitive tourism destination. Additionally, the growth of the middle class in emerging markets has increased disposable income and fueled outbound travel to destinations like Tanzania.

Data coverage:

The data encompasses B2C enterprises. Figures are based on bookings, revenues, and sales channels of hotels, vacation rentals, cruises, package holidays, and camping.

Modeling approach:

Market sizes are determined through a bottom-up approach, building on a specific rationale for each market. As a basis for evaluating markets, we use financial reports, the Global Consumer Survey, third-party studies and reports, data from industry associations (e.g., UNWTO), and price data of major players in respective markets. To estimate the number of users and bookings, we furthermore use data from the Statista Consumer Insigths Global survey. In addition, we use relevant key market indicators and data from country-specific associations, such as country-related GDP, demographic data (e.g., population), tourism spending, consumer spending, internet penetration, and device penetration. This data helps us estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the relevant market. For example, ARIMA, which allows time series forecasts, accounting for stationarity of data and enabling short-term estimates. Additionally, simple linear regression, Holt-Winters forecast, and exponential trend smoothing methods are applied. A k-means cluster analysis allows for the estimation of similar countries. The main drivers are tourism GDP per capita and respective price indices.

Additional notes:

The data is modeled using current exchange rates. The market is updated twice a year in case market dynamics change.

This report presents a comprehensive analysis and additional information on the Mobility market, in a PDF format.

Business or corporate travel is the tourism segment that focuses on people who travel for work or professional purposes and the related tourism services. This branch also includes the meetings industry, which refers to business events, conferences, congresses, trade fairs, and exhibitions. According to the World Travel and Tourism Council (WTTC), business travel accounted for 20 percent of the global tourism expenditure in 2021. In that year, it was estimated that business travelers spent more than 740 billion U.S. dollars worldwide, with Chinese tourists topping the ranking of the biggest business travel spenders.