A well-managed tourism sector can protect and preserve a country’s natural and cultural assets while generating fiscal revenue through taxes, licenses, and fees; creating high-quality jobs; and forming backward linkages with other economic sectors.
Despite its relative underdevelopment, by 2019 Tanzania’s tourism sector contributed an estimated 17 percent of its GDP and directly employed over 850,000 workers, making it the country’s second-largest component of GDP and third-largest source of employment.
“Transforming Tourism - Toward a Sustainable, Resilient, and Inclusive Sector” was the title of a World Bank Tanzania Economic Update1 (“WB TEU”) (July 2021 - issue 162) issued during the pandemic and which included a separate section on tourism. In referencing tourism’s major role in the economy, it highlighted the following: The World Economic Forum’s (“WEF”) 2019 Travel and Tourism Competitiveness Index3 ranked Tanzania as 1st in Africa and 12th worldwide for the quality of its nature-based tourism resources, and 32nd in Africa and 112th in the world for its cultural resources.
Tourism has been Tanzania’s largest foreign exchange earner since 2012, and in 2019 it accounted for over one-quarter of the country’s foreign exchange earnings.
Moreover, as the tourism value chain is linked to numerous other economic sectors, it plays an outsized role in growth, employment, and poverty reduction. However, the sector’s risk vulnerability is high.
Over the past ten financial years, from 2012/2013 through 2021/2022, Mount Kilimanjaro National Park known or abbreviated as KINAPA has emerged as a formidable economic force, ranking second only to Serengeti among Tanzania's 22 national parks. During this period, the park contributed a staggering TZS 581,802,267,423.00 billion to the economy through tourism, hosting a total of 467,190 visitors. Notably, Kilimanjaro is among the five parks that generate sufficient revenue to cover costs and support the tourism industry in Tanzania.
This economic success story is a collaborative effort, with contributions from various stakeholders such as TANAPA, TATO, KIATO, Tour Operators, Guides, and Porters. The park's commitment to providing top-notch services to tourists is reflected in the continuous improvement of infrastructure, including rescue services. An investment of TZS 806,781,340.00 from the Tanzania Covid Recovery Project (TCRP) was allocated to enhance tourism infrastructure, ensuring the safety and satisfaction of visitors.
The economic significance of Mount Kilimanjaro extends beyond park boundaries, playing a pivotal role in Tanzania's overall tourism sector. With about 72% of Tanzania's total tourism revenue coming from the Kilimanjaro region and the Northern Safari Circuit, the park alone contributes about 50 million USD annually, representing 45% of all income generated by Tanzania's 15 national parks.
Climbing and safari tourism in the Kilimanjaro region has profound implications for the local community. The park attracts over 35,000 climbers annually, along with 5,000 day visitors. Tourists, primarily from North America and Europe, contribute significantly to the Tanzanian economy. On average, each visitor climbing Kilimanjaro contributes 1370 USD, with almost half directly benefiting the National Park authority. This revenue distribution includes wages and tips for guides, porters, and cooks, showcasing a substantial economic uplift for local communities.
Additionally, Kilimanjaro National Park has become a beacon for sustainable tourism, focusing on community projects, local markets, and environmental conservation. As a testament to its rich history and biodiversity, the park has been designated a World Heritage Site by UNESCO in 1987 and a Natural Wonder of Africa in 2013.
In recent times, the government's forward-looking approach to installing high-speed internet services at Horombo, reaching an altitude of 12,200 feet, adds a modern touch to the mountain experience. The move not only supports tourism but also enhances safety on the mountain, facilitating communication for visitors with their loved ones back home. This initiative aligns with the Information, Communication, and Technology Ministry's vision for a connected and accessible Mount Kilimanjaro.
As Mount Kilimanjaro continues to stand as Africa's highest mountain, its economic impact remains a cornerstone of Tanzania's tourism industry, contributing to job creation, community development, and environmental preservation.