Tanzania remains among the Top Safari Destinations in the word,

Jovago has created a global exposure for over 1,000 hotels in Tanzania and 25,000 hotels in Africa.

E-tourism

Number of Tanzanians Internet subscribers has reached 9 million users, over 20% of the total population in 2014.

Internet connectivity is growing rapidlInternet connectivity is growing rapidly. There are more than 40 companies to choose from but Vodacom, Airtel, Smileand Tigo are the most popular Tanzania Internet Service Providers.

Most people access internet through their Most people access internet through their mobile phones and internet cafes, but Wifi has been a major essential need in the hotels and work areas.

The national Fibre-optic broadband technology provides 3G speed and 4G speed.

Over 16.4 million or over 34% of subscribers have mobile money accounts.

Tanzania as a top country in mobile money usage in Africa. In December 2015 the registered users of mobile payment services reaching a ratio of 84% that surpasses Kenya’s rate at 68%.

In 2015, theIn 2015, the Tanzania Tourist Board launched an official app to boost local tourism, this app is available at Google Play Store.

Top Challenges of the Hospitality Industry

Reforms in government policies

Improving transparency in business and government

Training and skills development

Infrastructure improvement Low ICT uptake

Insights on the Tanzanian Hotel Industry

Mr Richard O.B RugimbanaExecutive Secretary of the Tourism Confederation of Tanzania (TCT)

What is the outlook for the hospitality industry in terms of market predominance, the impact of technology and shift in management structures?

TTanzania’s hotel industry is generally a young industry albeit beginning to show signs of rapid growth in serving both domestic and foreign guests. At present Tanzania receives over 1.2 million tourists and with the The Ministry of Natural Resources and Tourisms’ master plan, has the goal of attracting 2 million arrivals next few years. Brand wise we do have prestigious few years. Brand wise we do have prestigious names such as Singita Grumeti, Hyatt, Ramada, Sopa and Serena etc. As further growth continues we believe more reputable brands will be coming in. Likewise our own local brands will also begin to make an impact. Manpower is still a challenge but we are building the capacity of young Tanzanians to take over managerial roles in the near future. to take over managerial roles in the near future. Overall Tanzania is on steady road to develop a reputable hospitality sector.

Are there any trends in customer preferences?

The bottom line is travelers constantly seek quality services combined with the value for money. With the rise of mobile communication, free wireless internet and similar services are increasingly desired by travelers wanting to stay online and connected with the world.

Is there any difference in challenges when Is there any difference in challenges when developing a hotel group chain as opposed to a stand-alone brand?

YYes it is clear that chain hotels of reputable brand do have an advantage based on in-house capacities to leverage on (strong marketing outfits, quality services, etc). The kind of holiday experiences Tanzania offers does also allow stand alone brands to develop niches of their own offering unique and specialized services. Likewise smaller hotels and mostly in regions are beginning smaller hotels and mostly in regions are beginning to offer quality services for domestic tourism (carving a new niche of their own).

What are the main challenges facing the hotel industry in Tanzania?

TTourism has the potential to generate more revenue to the economy and further increase employment for the younger people. Tanzania has vast array of places that attract tourists, much better than other countries in east and central Africa. High taxation is one of the challenges that cause strain on the industry, as major tourism products and services are subject to products and services are subject to VAT, which can increase the price of services. Other major challenges facing the industry include developing a diversity of offerings, including wellness and spa treatments, water sports, and specialist guiding. There are also challenges in terms of the price of air tickets. There are also issues around hospitality management standards/training and the development of frontline stafrontline staff communication skills in terms of English language development.

How are you responding to the industry shift towards e-commerce in the tourism sector?

E-commerce is having a real impact on the industry, we look to institutions such as Tanzania Tourist Board to take a lead in this area and help the nation’s hospitality sector embrace the technology changes. As a part of Hilton As a part of Hilton Worldwide we always invest in new technology and e-commerce to maintain our competitiveness. Hilton Worldwide launched digital check-in with room selection technology, now available at more than 3,700 hotels. This is now a worldwide service and operates in Tanzania.

How would you rate the governmentHow would you rate the government’s support of the hotel industry in Tanzania?

TheThe Tanzanian government is very much involved in the sector and well recognizes the place of tourism as a major contributor to the economy; the industry has to work with government to develop a fair taxation system to capture income for the revenue authority but also provides a commercial situation that attracts investors and lets businesses prospebusinesses prosper.

Yehia El MansouryGroup Director of Business development

DoubleTree By Hilton

What does the future hold for the tourism industry in Tanzania?

TTanzania has a lot of potential, it’s a virgin market with lots of attractions for both domestic and foreign tourists to discover. Rapid economic growth averaging 7%, and peace and stability are factors which provide a conducive environment for tourism growth. With the Tanzania Tourist Board aiming to attract over two million foreign arrivals by 2017, Jovago are expanding their capacity to meet the expected demand for accommodation and leisure services.leisure services.

Is there room for the growth of the local tourism industry to match that of inbound tourism?

Yes indeed,with attractive, affordable offerings and targeted marketing by travel and tourism operators the industry is set to expand the earnings from domestic tourism. While travel for business and family reasons is very strong there is still huge potential to offer attractive priced and varied holiday or leisure options to the rising middle class in the country.

Outlook on the Tanzania Tourism Industry

Andrea GuzzoniCountry Manager, Jovago Tanzania

Tanzanian Hospitality Industry

Tanzania is the ideal destination for Tourism investment opportunities owing to its peacefulness, natural resources, strategic geographical location and access to the global market (Ecowas, EAC, UN etc).

An abundance of tourism attractions has An abundance of tourism attractions has been a major pulling factor for the increasing number of international tourists compared to arrivals for business, transit or educational purposes. (Leisure(81%),VFR (7%), Business(6%),Transit (3%) and Others (3%)). The highest number of tourists are coming The highest number of tourists are coming from Kenya (18%), Uk (7%), US (6%) , Italy (5%), Germany (5%) South Africa (4%) and France (3%). Tanzania attempts to potentially increase visitation from untapped markets such as China and Japan.

Euromonitor International forecast a 4.5% Euromonitor International forecast a 4.5% year on year increase in number of tourists arrivals to Tanzania from 2015-2019. This is a line with the historic tourist arrival trend.

Major pole of destinations include Zanzibar Major pole of destinations include Zanzibar Island, Serengeti National Park, and Mt.Kilimanjaro due to the high concentration of the best hotels and tourist attractions.

The best months for tourists arrivals in Tanzania are during the dry season from the late June to October and to some places in July to March. The low season includes the months of March, April and May when ‘long rains’ are expected.

TheThe Tanzania Tourist Board (TTB) has been named as one of three Best Tourist Boards in Africa by the 2015 Travvy Award that recognizes the highest standards of excellence in the Industry today.

Luxury accommodation can be found in Luxury accommodation can be found in Zanzibar, Dar es Salaam, Arusha and popular national parks like Serengeti. Tanzania plans to increase the tourism marketing budget in 2016 according to the new Tourism minister, Prof Maghembe.

According to the five-year marketing According to the five-year marketing blueprint rolled out in 2013, Tanzania expects to welcome two million tourists by the close of 2017, boosting the tourism revenue from the current $2 billion to nearly $3.8 billion.

Introduction

Tanzania is recognized as the leading safari destination in Africa. Two of the most outstanding sites of natural beauty in the world, Serengeti and Mt Kilimanjaro, are found in the country.

TTanzania is a home to 7 World Heritage Sites recognized by UNESCO, including Kilimanjaro National Park, Selous Game Reserve, Ngorongoro Crater Conservation area and Serengeti National Park, The Protected Cultural Sites include Kondoa Rock sites, Kilwa Ruins of Songo Mnara and StoneStone Town (Zanzibar).

Tourism is a leading foreign exchange earner, presently out-performing the gold industry. In 2015 it attracted an income of USD 2.04 billion up from 1.90 billion in 2014.

Tourism directly employs close to 600,000 Tanzanians and up to 2 million citizens indirectly.

Tanzania’s tourism sector ranked 93th globally and 8th in sub-Saharan Africa according to World Travel & Tourism Competitive report (WTTC, 2015).

Almost 4,300 000 millions of passengers use Almost 4,300 000 millions of passengers use the 3 main international airports in Tanzania (Arusha, Dar Es Salaam, Zanzibar). More than 20 international airlines operate in the country.

The Direct contribution ofThe Direct contribution of Travel & Tourism to GDP in 2014 was TZS 2,975.6bn (1 359 Millions of US Dollar) which is equal to 5.1% of GDP.

The Tanzanian FactorSource: CIA World Factbook 2015 + World Travel & Tourism -Tanzania Report 2015 + Tanzania Investment Report 2015

+ World Tourim Organisation + Tanzania Tourism Board + Jovago Q1 Data

Tourism represents 17% of Tanzania's GDP in 2014

Services47.4%

Industry25%

Agriculture27.6%

Most populated country in East Africa

Population : 51 millions

7.9% economic growth rate up to July 2015

20132012

7%6.9%5.4%

2014

Tanzania is the second largest economy in East Africa

Paul MidyCEO Jovago

“Tanzania is a growing tourism market which Jovago intends to nurture and grow by enabling both local and foreign tourists to discover more about their destinations long before arrival. We aim to show the beauty that lies within as well as encourage travel and discovery of Tanzania by use of our services”

Hospitality ReportTanzania