Tanzania’s tourism bounce drives surge in hotel occupancy

In January 2023, the national hotel bed occupancy rate stood at 43.4 percent, rising modestly to 44.7 percent in January 2024.

By January 2025, the rate had surged to an impressive 65.5 percent, marking a jump of over 20 percentage points within a single year.

The rebound has come alongside an expansion in accommodation capacity.

The number of hotels and beds recorded in the official survey remained unchanged at 185 hotels and 10,705 beds in both January 2023 and January 2024.

However, by January 2025, these figures had grown to 266 hotels and 12,428 beds.

The NBS attributes much of this growth to the strong return of international tourism.

International visitor bed-nights rose from 101,871 in January 2023 to 110,826 in January 2024, before surging to 150,201 in January 2025, driving much of the overall growth in hotel occupancy.

Tourism Confederation of Tanzania (TCT) Executive Director, Ms Lathifa Sykes, provides crucial context, noting the recurrence of Covid-19 in 2022 in some parts of the world, which had affected international travel.

“This highlights that the growth seen in 2025 is not merely a natural progression but a powerful rebound from years of suppressed travel during and immediately after the pandemic,” she said.

“The sector is now benefiting from pent-up travel demand, filling beds and boosting revenues,” added Ms Sykes, noting that the recent expansion of hotel infrastructure also supports the noted trend.

The survey showed the number of hotels rising from 185 in 2024 to 266 in 2025, with bed capacity increasing from 10,705 to 12,428, underscoring the industry’s investment in meeting surging demand.

Despite the positive national figures, Ms Sykes cautions against assuming uniform success across the country.

She presents a “tale of two circuits,” arguing that national figures are heavily skewed by the performance of the Northern Circuit, home to world-renowned attractions such as the Serengeti’s wildebeest migration, a unique global asset.

“You cannot compare the Northern Circuit accommodation facilities with those in the Southern Circuit,” she said, adding that the Northern Circuit is “by far more attractive, as it is a sure thing” for tourism business, especially during peak seasons.

Economist Christina Mneney, from the Tanzania Institute of Accountancy, pointed to several factors behind the sharp rise in bed occupancy.

One major contributor is the Royal Tour initiative by President Samia Suluhu Hassan, which has successfully promoted Tanzania’s attractions to global audiences.

She also cited technological advances, noting that improved payment convenience has helped boost occupancy.

“The growing use of mobile money platforms, such as M-Pesa, has made it easier for domestic and international tourists to book and pay for hotel services directly through their phones,” she said.

Ms Mneney added that foreign direct investment (FDI) in the tourism and hospitality sector has expanded capacity and improved services, attracting more visitors.

“International investors increasingly view Tanzania as a safe and profitable destination, leading to more hotels, better facilities, and higher-quality services,” she said.

The rise of platforms such as Airbnb has also opened alternative accommodation options, with some women entrepreneurs running successful short-term rental businesses, further expanding capacity in Tanzania’s tourism market.

“Local participation in tourism has accelerated bed occupancy as well. Increased awareness campaigns, stronger economic activity, and higher incomes among Tanzanians have encouraged more domestic travel,” she added.