Tanzania’s Airbnb boom prompts calls for fair competition

Airbnb is an online platform and marketplace where individuals can list their properties (ranging from entire homes to single rooms) for short-term rentals to travellers, essentially facilitating a peer-to-peer home sharing experience.

A report from short-term rental data platform AirDNA indicates that Airbnb has 2,700 listings in Tanzania.

Speaking to The Citizen, former Hotels Association of Tanzania (HAT) chief executive officer Kennedy Edward said that Airbnb is a growing platform that helps individuals generate additional income.

However, he emphasised the need for close monitoring to ensure fair competition with other accommodation facilities and proper tax compliance.

Mr Edward added that while the platform is popular in urban areas, it is not suitable for national parks and similar locations, noting that Dar es Salaam leads in the use of Airbnb.

“Technology is advancing every day, and we cannot prevent people from opting for the affordable prices offered by Airbnb,” he said.

He explained that traditional accommodation services, particularly in cities and towns, may be affected as Airbnb allows clients to cook and invite guests—privileges not always available in hotels and lodges.

“The authorities need to address this issue because hotels and lodges pay high taxes, whereas Airbnb hosts often do not,” he said.

According to him, Airbnb is already well-established in Tanzania and expanding rapidly. He urged the government to create a conducive business environment to ensure that it continues generating income for Tanzanians while maintaining tax fairness across the industry.

On the other hand, investor and businessman Michael Menas said he began researching the short-term rental business in 2017 before registering on the platform. After three years, he decided to invest, and now his business is performing well, with his properties frequently hosting guests.

“The world is becoming more digital, and people seek convenience,” he said. “For example, in hotels, guests are required to check out by 10 am, whereas with Airbnb, they can negotiate check-out times with the host.

“Right now, many people have heard about this business and want to enter it. However, I advise them to conduct thorough research first because it comes with many challenges. Hotels can also register on the platform instead of relying solely on traditional methods,” Mr Menas added.

He stressed that anyone looking to invest should first conduct research instead of committing large sums of money and later failing to make a profit. He recommended that potential investors take at least five months to learn how the system works before making financial commitments.

For her part, Airbnb host Doreen Matemba said the economy has undergone a significant transformation in recent years, and one trend gaining traction is Airbnb.

“This business model is effective because it allows individuals who do not own property to leverage other people’s properties to create profitable short-term rental businesses without needing to own real estate themselves,” she said.

The platform addresses a gap that traditional landlords have long overlooked, providing flexible, short-term rental options.

“The tourism industry is thriving, and more international travellers are looking for authentic, home-like experiences. Airbnb has capitalised on this by offering unique, local accommodations that standard hotels simply cannot replicate,” Ms Matemba said.

“You don’t need to own property to make money. Real estate has traditionally been an investment for those with substantial resources. Airbnb allows you to rent properties and turn them into profitable ventures without the burden of ownership.”