Tanzania has implemented a sweeping directive requiring all transactions within its tourism sector to be conducted exclusively in Tanzanian shillings. The move, effective from July 1, 2024, marks a significant policy shift aimed at reducing dependency on foreign currencies, particularly the US dollar, which has long dominated transactions in the country’s lucrative tourism industry.
Under the new regulations, all fees and charges related to tourism operations, including Tourism Business Licence fees, filming permits, and visiting fees, must now be settled in Tanzanian shillings. This directive extends even to transactions previously denominated in dollars, which will now be converted at the prevailing exchange rate set by the Bank of Tanzania.
Finance Minister Mwigulu Nchemba underscored the rationale behind the decision during his 2024/2025 Annual Budget speech in June, emphasizing the need to strengthen the Tanzanian shilling and promote economic stability. The transition, while mandated by the government, is also seen as a proactive measure to encourage greater circulation of local currency within the economy.
The Tanzania National Parks authority has already transitioned to exclusive use of Tanzanian shillings for all transactions, urging tourism companies and service providers to adhere to the new guidelines. This shift aims to align with broader national efforts aimed at enhancing economic sovereignty and reducing dependency on external financial instruments.
Acknowledging the impact on international visitors, the government has advised tourists and non-resident customers to convert their foreign currency into Tanzanian shillings to facilitate seamless transactions. The move is expected to support local businesses and contribute to sustainable economic growth by keeping financial transactions within the local economy.
Looking ahead, the Ministry of Natural Resources and Tourism has indicated ongoing collaboration with stakeholders to establish a permanent payment framework that aligns with the new regulations. Until August 1, 2024, entities issued with Control Numbers denominated in US dollars before July 1, 2024, will continue to pay according to the currency specified in their respective Control Numbers.
As Tanzania positions itself for economic resilience in a global context, the transition to local currency transactions within the tourism sector represents a pivotal step towards achieving greater financial autonomy and stability. The government remains committed to implementing measures that safeguard the integrity of its economy while fostering sustainable development across all sectors.
