Zanzibar's tourism growth drives economic surplus in July 2024
Zanzibar's expanding tourism industry has played a crucial role in generating a significant economic surplus, as reported by the Bank of Tanzania (BoT). As of May 2024, tourism-related activities have helped increase the current account surplus to 506.9 million US dollars, up from 389.1 million US dollars in the previous year.
The BoT's monthly review reveals a noteworthy 12% rise in tourism revenue, totalling 1.020 billion US dollars. This increase is linked to higher tourist arrivals, highlighting the sector's importance to Zanzibar's economy.
Overall service receipts, mainly from tourism, have elevated exports of goods and services to 1.084 billion US dollars. This growth has effectively offset a 32% decline in traditional exports such as cloves, demonstrating tourism's increasing significance in the island's economic diversification.
Experts note that the influx of visitors and their increased spending have substantially improved Zanzibar's service revenues. This trend not only enhances the current account balance but also underscores tourism's vital role in shaping the island's distinctive economic landscape.
As Zanzibar continues to attract more visitors, the strong performance of the tourism sector is expected to remain a key factor in the island's economic growth and stability.
Source: Daily News