Tanzania’s hospitality sector is experiencing robust growth, fueled by a wave of international hotel investments. The latest entrant to this burgeoning market is the renowned Radisson Hotel Group, which has announced plans to open seven new hotels in the country. This expansion will significantly bolster Radisson’s African operations, adding over 1,200 rooms to its existing portfolio.
Tanzania has become a key focus for Radisson’s aggressive expansion strategy. The group has already secured two hotel agreements, marking its official entry into the Tanzanian market. These agreements will bring 334 rooms to the country, including a complex in Dar es Salaam’s central business district. This complex will feature 94 guest rooms and 44 three-bedroom apartments.
Radisson’s upcoming hotel in Dar es Salaam will be located in the upper 14 floors of a 33-story skyscraper, making it one of the tallest buildings in the region. The hotel boasts a strategic location near the ferry terminal to Zanzibar, offering guests a variety of dining options, an outdoor pool, a poolside restaurant, and several retail outlets.
Beyond Dar es Salaam, Radisson plans to establish a presence in Mwanza by 2025 with a 196-room facility. Mwanza, known for its bustling corporate scene and proximity to the Serengeti, is poised to further strengthen Radisson’s presence in Africa, which currently spans 30 countries.
This surge in hotel investments coincides with a booming tourism sector in Tanzania. The Bank of Tanzania’s latest economic review reports a record-breaking 1.9 million tourists in the year ending April 2024. The revenue generated by tourism has also seen a significant increase, prompting President Samia Suluhu Hassan to advocate for intensified investment in luxury accommodations.
This call for more luxurious accommodations is evident in the recent opening of the Kwanza Resort by SUNRISE, a new five-star establishment in Kizimkazi. President Samia celebrated its opening last August, emphasizing the need for further such developments to accommodate the growing number of visitors.
Tanzania’s ambitious tourism goals are outlined in the Third Five-Year Development Plan and the CCM party’s 2020-2025 electoral manifesto, which aims to attract 5 million tourists by 2025 and generate a revenue of 6 billion US dollars. Tourism is seen as a major contributor to the GDP and foreign earnings, highlighting the sector’s vast potential, driven by Tanzania’s unique natural landscapes.
To foster a competitive edge and strengthen sectoral linkages, the plan emphasizes enhancing legal frameworks, cultivating public-private partnerships, and diversifying tourism products. One key focus is promoting the southern tourism circuit as a vibrant alternative to the established northern routes.
