Tanzania is a land of tourism. And travel agents play a key role in facilitating smooth tour trips to it. A travel agent is a person or a company engaged in the sale of professional services to travelers1Meaning from: The Tourism Agents (Registrations and Licensing) Regulations, 2015.
The primary activities of a travel agency business is selling travel, tour, transportation and accommodation services to the general public and commercial clients and to arrange and assemble tours that are sold directly or through tour operators. Travel agency business in classified under category 7911 of ISIC2International Standard Industrial Classification of All Economic Activities which is the classification adopted in Tanzania.
Travel Agency vs Tour/Safari Company
NB: A travel agent is not a tour operator. A tour operator is a person or company engaged in the provision of professional ground transport for game viewing and selling of tour package3Meaning from: The Tourism Agents (Registrations and Licensing) Regulations, 2015. In Tanzania, the license of a travel agency is different from a license of a tour operator. Tour operator businesses are classified under category 7912 of the ISIC.
The agents may also offer travel packages that include travel insurance, and other travel-related products and services.
Travel agents may specialize in a particular type of travel, such as adventure tourism or luxury travel, or they may serve a broad range of customers with various travel needs. The goal of a travel agent is to help customers plan and book their trips in a way that is enjoyable, safe, and hassle-free.
I. Introduction
Brief overview of the tourism industry in Tanzania
Tanzania experienced a significant boost in travel receipts in 2022, with the total amount reaching USD 2,560.7 million, nearly doubling from USD 1,310.3 million in 2021. This surge in revenue corresponds to the rise in tourist arrivals to the country. In 2022, Tanzania welcomed 1,454,920 tourists, a notable increase compared to the figures of 922,692 in 2021 and 616,491 in 2020.
However, in 2020, the tourism sector suffered a considerable setback due to the devastating impact of the Covid-19 pandemic on international travel. The revenues plunged to USD 1 billion, significantly lower than the peak of USD 2.6 billion in 2019 when 1.5 million arrivals were recorded. Consequently, the sector’s contribution to the country’s GDP declined from 10.6% in 2019 to 5.3% in 2020, but it rebounded slightly to 5.7% in 2021.
Nonetheless, the Tanzanian National Business Council (TNBC) projects a rapid recovery for the sector, anticipating that tourism’s share in the country’s GDP will reach an impressive 19.5% by 2025/26. This optimistic outlook is based on the swift revival of the industry.
In terms of tourist arrivals by region, Europe traditionally holds the largest share, followed by Asia and the Pacific, the Americas, Africa, and the Middle East. It is worth noting that Tanzania’s hotel occupancy rate stood at 53.8% in December 2019, showing an improvement from 44.9% in December 2018.
The increase in tourist arrivals observed in 2022 can be attributed to the lifting of lockdown measures by many countries and the continuous efforts of the Tanzanian government to promote tourism attractions within and beyond its borders. These combined factors have played a crucial role in stimulating the recovery of the tourism sector.
II. Starting a Tourism Agency Business in Tanzania
- Legal requirements for starting a tourism agency business
- Types of tourism agency businesses in Tanzania
- Business registration process
- Obtaining necessary licenses and permits
- Business planning and budgeting
III. Operating a Tourism Agency Business in Tanzania
- Target market and customer segmentation
- Services offered by tourism agencies in Tanzania
- Pricing strategies and revenue streams
- Staffing and employee management
- Marketing and promotion strategies
IV. Challenges Faced by Tourism Agency Businesses in Tanzania
- Seasonality and fluctuations in demand
- Competition from other tourism agencies
- Infrastructure and transportation challenges
- Political and economic instability
V. Conclusion
- Summary of key points
- Potential for growth and expansion in the tourism agency business in Tanzania
- Final thoughts and recommendations.
 Kessy Juma is the founder of Miamia Trading Company (miamiatz). He is a Techpreneur with roots in accountancy. He believes that any business is good as long it caters the right market using the right strategy. 
 |