🇹🇿 Government Clarifies Foreign Currency Usage Regulations In Tourism Sector

By TATO Communications Desk

The United Republic of Tanzania, through the Ministry of Finance, has issued an official clarification regarding the implementation of the new FOREIGN CURRENCY USAGE REGULATIONS IN TOURISM SECTOR, 2025 (GN No. 198 of 2025), following a critical consultative meeting with tourism stakeholders.

The meeting, which was convened on 22nd April 2025 at the Ministry of Finance Headquarters in Dodoma, brought together senior representatives from the Ministry of Finance, the Bank of Tanzania (BoT), the Tanzania Revenue Authority (TRA), the Tanzania Private Sector Foundation (TPSF), and the Tanzania Association of Tour Operators (TATO).

The purpose of the meeting was to deliberate on concerns raised by tourism industry players regarding the operational impact of the new FOREIGN CURRENCY USAGE REGULATIONS IN TOURISM SECTOR, particularly in cross-border tourism transactions and domestic payments by non-residents.

Government Clarification on FOREIGN CURRENCY USAGE REGULATIONS IN TOURISM SECTOR

The Permanent Secretary of the Ministry of Finance, through a formal communication dated 22 May 2025 (Ref. No: CAB. 465/558/01), issued the following key clarifications to guide stakeholders:

1. Cross-Border Business Transactions
   The FOREIGN CURRENCY USAGE REGULATIONS IN TOURISM SECTORdo not prohibit the quotation of prices in foreign currency for cross-border transactions. Specifically:
   • Businesses are allowed to quote and receive payment in foreign currency for services sold to non-residents.
   • This applies to services that are negotiated with non-resident clients from outside the country, including international tour packages and online bookings.
2. Payments Within Tanzania by Foreigners
   For any expenditures made by foreigners within Tanzania, including tourism activities conducted locally:
   • All prices must be quoted and paid in Tanzanian Shillings (TZS).
   • This directive is part of the new FOREIGN CURRENCY USAGE REGULATIONS IN TOURISM SECTOR and applies to local hotel stays, park fees, local transport, and any other on-the-ground services consumed by tourists while in the country.
3. Ongoing Consultations for Outstanding Issues
   During the meeting, stakeholders raised additional concerns related to operational complexities and transitional impacts of the FOREIGN CURRENCY USAGE REGULATIONS IN TOURISM SECTOR. In response:
   • The Government committed to undertaking further consultations and pledged to provide feedback and further guidance on the unresolved matters in due course.

TPSF–TATO Engagement with Authorities

During the TPSF-facilitated session, representatives from TATO and other private sector entities had the opportunity to present key challenges faced by tour operators, including:

• The risk of foreign clients withdrawing from deals if restricted from transacting in familiar currencies such as USD or EUR.
• Concerns over foreign banks’ reluctance to process transactions denominated in TZS under the FOREIGN CURRENCY USAGE REGULATIONS IN TOURISM SECTOR.
• The impact on pricing transparency for international clientele when forced to convert costs.

TATO emphasized the need for a clear, well-communicated, and industry-sensitive implementation approach, particularly to preserve Tanzania’s competitiveness in the global tourism marketplace. This is a significant moment in addressing the broader impact of Foreign Currency in Tanzania Tourism.

Tanzania Government on the Use of Foreign Currency on Tourism

The Tanzania Government on the use of Foreign Currency on Tourism reiterated its goal to strike a balance between financial regulation and the competitiveness of the tourism sector. The updated FOREIGN CURRENCY USAGE REGULATIONS IN TOURISM SECTOR are aimed at ensuring proper monetary control while enabling international business continuity.

“We thank you for your continued cooperation,” said Mr. Johnson Nyella, speaking on behalf of the Permanent Secretary. He encouraged tourism players to comply with the FOREIGN CURRENCY USAGE REGULATIONS IN TOURISM SECTOR as clarified while awaiting further instructions on the remaining issues.

The Ministry also called upon industry stakeholders to actively participate in any future consultative forums and maintain communication with the Bank of Tanzania, TRA, and TPSF for clarity and compliance support.

Way Forward for Tour Operators and the Tourism Sector

In light of the government’s directives, the Tanzania Association of Tour Operators (TATO) is advising its members and partners to observe the following:

• Continue quoting and receiving payments in foreign currency only for services negotiated with non-residents abroad, as permitted by the FOREIGN CURRENCY USAGE REGULATIONS IN TOURISM SECTOR.
• For any services or products consumed within the country by foreigners, ensure pricing and payment is done in Tanzanian Shillings.
• Maintain updated records and transparent financial documentation to support both compliance and audits.
• Channel any unresolved issues through TPSF or TATO for coordinated engagement with the authorities, particularly in matters concerning Foreign Currency in Tanzania Tourism.

Contacts for Further Clarification

For more information or clarification on the implementation of the FOREIGN CURRENCY USAGE REGULATIONS IN TOURISM SECTOR, stakeholders can reach out via the following official contact points:

📍 Ministry of Finance – Dodoma
Tel: +255 26 2963101 | Fax: +255 26 2963109
Email: ps@hazina.go.tz
Website: www.mof.go.tz

CC:

• Governor, Bank of Tanzania, P.O. Box 2303, Dodoma – Attn: Emmanuel J. Akaro
• Tanzania Association of Tour Operators (TATO), 11 Simeon Road, Arusha, P.O. Box 6162

TATO remains committed to working closely with the government and other stakeholders to ensure a smooth and effective implementation of these financial regulations while safeguarding Tanzania’s tourism interests under the evolving framework of the FOREIGN CURRENCY USAGE REGULATIONS IN TOURISM SECTOR.