The report, Hotels Outlook 2016-2020, by PricewaterhouseCoopers, an audit and advisory firm, said the VAT on tourism services and rising room rates were making the country an increasingly expensive international tourist destination.
It said the downward spiral in local hotel bookings was expected to persist over the next four or five years as the cost of spending the night in one high-class establishment continues to go up.
The report compares hotel industry trends in South Africa, Nigeria, Mauritius, Kenya and Tanzania.
It said Tanzania recorded the biggest increase in hotel revenues last year compared to the other countries under review due to a hike in hotel room rates.
The average price of hotel rooms in Tanzania rose 22 percent in 2015 to 139 U.S. dollars per night, which offset the decline in stay unit nights, resulting in a 14 percent increase in room revenue.
The tourism sector has over the past few years overtaken mining as the biggest foreign exchange earner in Tanzania. More than 1.1 million tourists visited the country in 2015, slightly down from 1.14 million visitors in 2014.
Tanzanian government plans are now underway to boost the promotion of Tanzania’s tourist attractions abroad and ultimately double the number of foreign visitors.
Tanzania’s hotel and hospitality industry is heavily dependent on foreign tourism.
The number of available hotel rooms in the country is expected to increase from 7,700 in 2015 to 8,300 in 2020. Enditem
Source: Xinhua/NewsGhana.com.gh
