The 2025/26 budget on Tourism: Balancing budgets and global ambition

For the past five years, post-COVID, Tanzania has progressively distinguished itself in its approach to natural resource and tourism management. While seemingly a bold assertion, statistical trends indicate Tanzania is poised for significant growth in this sector. Echoing Dr. Yuval Harari's sentiment that tourism does not sell flight tickets and hotel bedrooms, it sells experiences. The consumption of which is supposed to widen our horizons, fulfil our human potential, and make us happier, a key question arises: can the current budget sustain and enhance these experiences in the coming year?

Interestingly, tracing back the 2024/25 budget for Ministry of Natural Resources and Tourism, we had seen a substantial 46.7% decrease, from TZS 634 billion in 2023/24 to TZS 348 billion in 2024/25. Despite this notable reduction in allocated funds, the Ministry had consistently prioritized operational expenditures, allocating 71% to ordinary costs while 29% is directed towards developmental projects. With the tourism sector demonstrating substantial growth, should we expect to witness a comparable decrease in its budgetary allocation this year?  

Given Tanzania's extensive and varied natural heritage, the Ministry of Natural Resources and Tourism oversees approximately 32.5% (307,800 sq km) of the nation, encompassing a wide spectrum of protected areas. This significant natural wealth positions Tanzania as a leading tourist destination in Africa, with the global tourism market as the appropriate competitive arena.

Although the Ministry's success in securing over 92% of its targeted revenue for three consecutive years underscores this potential, also this achievement aligns with a consistent rise in tourist arrivals from 2022 to early 2025, reaching five million in the initial months of 2025 alone. This, combined with Tanzania's rich natural endowment, has culminated in the nation being recognized as the World Leading Travel Destination for the second consecutive year in Africa. This success suggests a focused and effective utilization of resources despite the budgetary constraints.

Quoting the late Dr. Reginald Abraham Mengi, “The pursuit of knowledge and growth is a lifelong journey, not a destination”, in my perspective, the current year’s budget should continuously demonstrate a focused approach towards ensuring development within the tourism sector through prioritising, security of wildlife and humans involved, preservation and growth of species and promotion of our attractions globally, as it aligns with the national vision for 2050. 

Despite the reduced budgetary allocation in the previous budget, the growth in national income and the international accolades attributed to the natural resources and tourism sector provide compelling evidence of the maturity and efficacy of the Ministry's financial planning.

To ensure sustainable development, I believe Tanzania should strategically enhance its investment in three key areas.

Firstly, leveraging the rapid advancement of technology and the increasing interconnectedness of the world offers significant opportunities for tourism promotion. My vision is for Tanzania to ascend to the ranks of countries that have natural attractions amongst the Seven Natural Wonders of the World, building upon the recognition achieved by Serengeti National Park as one of Africa's Seven Natural Wonders in 2013.

Secondly, Tanzania should amplify its national and international promotion efforts by sponsoring high-profile global events, particularly in sports and arts, to reach wider audiences. While requiring significant initial investment, the returns from such exposure, as demonstrated by the impact of the 2022 Royal Tour, can be substantial. Proactive engagement of public and global figures can further encourage international visitation. Despite numerous accolades, including Serengeti's repeated recognition as "Africa's Leading National Park," from 2019 to 2024 a more aggressive global marketing strategy aligning with Tanzania's vast resources is warranted.

Lastly, for a developing nation aspiring to sustainable progress, robust tourism policies are crucial. The current reliance on the 1999 Tourism Policy, formulated for a different era, necessitates the creation of modernized policies to attract investment and generate transformative growth within the sector. Strategic plans and visionary leadership alone may not suffice to establish a resilient and sustainable tourism industry. 

I am optimistic that Tanzania, having awakened its immense tourism potential, is poised to become a dominant force in the African and global tourism landscape. While learning from the sustainability practices of developed nations and showcasing our unique offerings to the world remain vital, the government's recent decisive actions signal a strong commitment. Drawing from Shakespeare's observation in Twelfth Night, "Some are born great, some achieve greatness, and some have greatness thrust upon them," I believe Tanzania has had greatness thrust upon it and is on the path to achieving true greatness in the tourism industry.

This article was written by Audit and Assurance Associate, Alli Msangi.