This archive report was first published on 20 August 2019.
Published on August 20, 2019, a report by PricewaterhouseCoopers (PWC) has projected Tanzania and Kenya to have the next fastest growing hotel industry in Africa.
The report highlights a significant turnaround in the hotel industry, with room revenue increasing by 15.4 percentage points in Tanzania and 28 percentage points in Kenya.
According to PWC, the growth in Tanzania's hotel industry was largely driven by the absorption of the 18% VAT on tourist services and rising visa costs for business visitors, which had a negative impact on the market in 2017.
Guest nights in Tanzania rebounded in 2018, and the country's appeal as an exotic destination, along with growth in tourism from India and China, are expected to fuel growth over the next five years.
Prof Adolf Mkenda, the permanent secretary in the Ministry of Natural Resources and Tourism, revealed that tourism generated $2.4 billion in 2018, a 4.3% increase from the previous year.
The top 15 tourist markets accounted for 71.8% of total visitors, with the United States taking the lead, followed by Kenya and the United Kingdom.
