Gold dethroned as tourism emerges Tanzania's top export earner
Tourism has become Tanzania's top foreign exchange earner, surpassing gold.
In the year ending May 2025, tourism revenue reached $3.92 billion, contributing 55.1% to service-related earnings.
A rise in international tourists to over 2.17 million drove this growth in the sector.
Tourism has officially overtaken gold as Tanzania's top foreign exchange earner, marking a historic milestone in the country's economic rebound from the pandemic.
The Bank of Tanzania's June 2025 Monthly Economic Review shows that tourism generated $3.92 billion in the year ending May 2025, up from $3.63 billion the year before, now making up 55.1% of all service-related earnings.
The earnings placed tourism just ahead of gold, which brought in $3.83 billion over the same period.
A surge in international arrivals played a central role in the sector's rise, with visitor numbers reaching 2,170,360, up from 1,961,870 in the prior period.
Policy reforms support sector expansion
President Samia Suluhu Hassan has played a central role in promoting Tanzania's tourism sector, with her administration introducing targeted policy reforms aimed at easing operational constraints and driving industry growth.
On July 8, 2025, the central bank granted tour operators partial exemptions from certain foreign exchange controls, a move widely praised by industry stakeholders.
The new exemptions allow tourism operators to use foreign currency for two key purposes: paying for services on behalf of non-resident tourists and acquiring specialised tourism vehicles from local suppliers. The central bank's decision reflects an effort to ease operational bottlenecks while maintaining broader currency stability.
The move also signals a broader strategic commitment to tourism as a cornerstone of Tanzania's economic development.
With world-renowned attractions like Mount Kilimanjaro, Serengeti National Park, and the beaches of Zanzibar, the country is steadily carving out its place as a top choice for global travellers.
Tanzania's appeal as a tourist hotspot continues to grow, with the country earning top honours at the 2024 World Travel Awards, including Africa's Leading Destination and the World's Leading Safari Destination.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
5 days ago
- Yahoo
TRX Gold Corp (TRX) Q3 2025 Earnings Call Highlights: Strong Financial Performance Amid ...
Release Date: July 16, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Positive Points TRX Gold Corp (TRX) reported strong financial results for Q3 2025, with increases in revenue, gross profit, and net income compared to previous quarters. The company has successfully expanded its processing capacity to 2,000 tons per day and plans further expansions to 3,000-4,000 tons per day. TRX Gold Corp (TRX) has a robust PEA with a $1.2 billion NPV at $3,000 gold, indicating significant potential value. The company is self-funding its growth and has a straightforward business plan to expand operations and develop underground mining. TRX Gold Corp (TRX) has entered into an agreement with the Bank of Tanzania to sell a portion of its gold production locally, benefiting from a reduced royalty rate. Negative Points The company is currently facing challenges with negative working capital, which it aims to rectify in the short term. There are concerns about the joint venture agreement with Semenko, which is less favorable compared to other jurisdictions. The company is reliant on short-term liquidity lines to finance long-term assets, which may pose financial risks. TRX Gold Corp (TRX) has not yet fully optimized its plant operations, with ongoing efforts to improve recovery rates and processing efficiency. The market has not yet fully recognized the company's potential, as reflected in its stock price not appreciating as much as some non-producing juniors. Q & A Highlights Warning! GuruFocus has detected 2 Warning Sign with TRX. Q: During the quarter, we saw a 25% oxide and 75% sulfide mix in throughput. How do you expect this to trend in the coming quarters? A: Steven Maloney, CEO: We aim to reduce the oxide percentage as we install a pre-leach thickener by the end of this calendar year, which will allow us to process more sulfides and improve head grade by about 0.3 to 0.4 grams. Q: Can you provide more details on the recovery improvements and the timeline for these enhancements? A: Richard Goffy, Technical Expert: We are working on achieving a stable grind size of 75 microns, which will improve recovery. The flotation plant and associated fine grinding are expected to be operational by FY 2027, leading to significant recovery improvements. Q: With the current strong gold price environment, what are the main challenges to increasing annual production beyond 62,000 ounces? A: Richard Goffy, Technical Expert: The main bottleneck is the mill capacity. We plan to ensure our SAG mill has extra capacity to potentially increase throughput beyond 3,000 tons per day. Underground expansion will require additional declines and optimization studies. Q: Why not sell 100% of your production to the Bank of Tanzania given the reduced royalty rate? A: Michael Clo, CFO: While we have the option to sell more than the 20% minimum, we still require some US dollar revenue for expenses. Additionally, the Bank of Tanzania's refining capacity is currently limited, but we may increase sales to them as they improve. Q: How do you plan to address the market's concerns about your working capital and joint venture agreement? A: Steven Maloney, CEO: We are focused on normalizing our working capital and improving our financial metrics. Additionally, we are in discussions with the Tanzanian government to revise our joint venture agreement to be more favorable, which should help improve market perception. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Error while retrieving data Sign in to access your portfolio Error while retrieving data Error while retrieving data Error while retrieving data Error while retrieving data
Business Insider
5 days ago
- Business Insider
Gold dethroned as tourism emerges Tanzania's top export earner
Tourism has officially overtaken gold as Tanzania's top foreign exchange earner, marking a historic milestone in the country's economic rebound from the pandemic. Tourism has become Tanzania's top foreign exchange earner, surpassing gold. In the year ending May 2025, tourism revenue reached $3.92 billion, contributing 55.1% to service-related earnings. A rise in international tourists to over 2.17 million drove this growth in the sector. Tourism has officially overtaken gold as Tanzania's top foreign exchange earner, marking a historic milestone in the country's economic rebound from the pandemic. The Bank of Tanzania's June 2025 Monthly Economic Review shows that tourism generated $3.92 billion in the year ending May 2025, up from $3.63 billion the year before, now making up 55.1% of all service-related earnings. The earnings placed tourism just ahead of gold, which brought in $3.83 billion over the same period. A surge in international arrivals played a central role in the sector's rise, with visitor numbers reaching 2,170,360, up from 1,961,870 in the prior period. Policy reforms support sector expansion President Samia Suluhu Hassan has played a central role in promoting Tanzania's tourism sector, with her administration introducing targeted policy reforms aimed at easing operational constraints and driving industry growth. On July 8, 2025, the central bank granted tour operators partial exemptions from certain foreign exchange controls, a move widely praised by industry stakeholders. The new exemptions allow tourism operators to use foreign currency for two key purposes: paying for services on behalf of non-resident tourists and acquiring specialised tourism vehicles from local suppliers. The central bank's decision reflects an effort to ease operational bottlenecks while maintaining broader currency stability. The move also signals a broader strategic commitment to tourism as a cornerstone of Tanzania's economic development. With world-renowned attractions like Mount Kilimanjaro, Serengeti National Park, and the beaches of Zanzibar, the country is steadily carving out its place as a top choice for global travellers. Tanzania's appeal as a tourist hotspot continues to grow, with the country earning top honours at the 2024 World Travel Awards, including Africa's Leading Destination and the World's Leading Safari Destination.
Yahoo
09-07-2025
- Yahoo
US retail strained by tariff tensions, policy shifts fuelling economic anxiety
As the year progresses, forecasting the effects of new tariffs and government measures on the US economy remains a challenge, points out Kleinhenz. Kleinhenz noted that a robust 2.8% annual increase in gross domestic product for 2024 underscores the economic strength, driven by consumer expenditure and supported by business and government spending. 'This year began with high expectations for the strength of the US economy. 'Since then, anxiety and confusion have taken centre stage in the economy and financial markets as uncertainty over public policy has intensified. It was difficult to judge how policy changes would impact the economy in early 2025 and it remains so now,' Kleinhenz said. Economic growth has been relatively resilient so far this year despite prevailing uncertainties according to the July issue of NRF's Monthly Economic Review with GDP declining 0.5% in the first quarter. This was attributed primarily to a spike in imports triggered by tariff announcements. However, private final sales to domestic purchasers, which is a key indicator of consumer and business spending, saw a 1.9% year-over-year increase. Although this figure represents a decrease from the previous quarter's 2.9%, it still indicates robust private sector demand and suggests that the economic slowdown is less severe than anticipated, said Kleinhenz. The Personal Consumption Expenditures Price Index also recorded a slight rise in year-over-year inflation to 2.3% in May from April's 2.1%. Concurrently, personal income and consumer spending experienced an unadjusted increase of 4.5% in May. Core retail sales, which exclude automobile dealerships, gasoline stations, and restaurants, climbed by 3.9% year-over-year in both May and for the initial five months of the year. NRF's statistics last month showed a continuation of growth in US retail sales for clothing and related sectors in May despite a slowdown in consumer purchasing ahead of tariffs. Employment figures are surpassing expectations, with the addition of 147,000 jobs in June this year, slightly above the yearly average. The unemployment rate remained stable at 4.1%, while job openings surged to 7.8 million in June. While tariffs have not yet made a significant impact on consumer prices, Kleinhenz warns that if the substantial tariff hikes announced earlier this year are implemented and maintained, they could permeate consumer prices. This could potentially reduce spending and affect the labour market with increased unemployment later in the year. Kleinhenz did not expect the Federal Reserve to reduce interest rates this month; however, cuts may be on the horizon for autumn. Meanwhile, Fed officials are monitoring how consumers' inflation expectations shape their spending and saving behaviours in response to short-term price fluctuations. Quantifying uncertainty is challenging; nevertheless, an Economic Policy Uncertainty Index created by Stanford and Northwestern economists has halved since reaching peak levels during April. The enactment of the One Big Beautiful Bill Act introduces multiple variables that 'could greatly alter the economic outlook' based on business and consumer responses. Yet, according to Kleinhenz, this legislation—which encompasses business incentives, permanent tax reductions for individuals, and workforce participation inducements—diminishes fiscal policy uncertainty considerably. The latest Global Port Tracker report, published by the National Retail Federation and Hackett Associates revealed that Cargo imports at key US container ports are projected to experience an uptick in the coming months, with retailers poised to capitalise on a temporary 90-day tariff reduction on goods from China. "US retail strained by tariff tensions, policy shifts fuelling economic anxiety" was originally created and published by Just Style, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Sign in to access your portfolio
