Your Guide to Registering and Licensing a Tourism Business in Tanzania
By Sunday Ndamugoba, Partner at RIVE & CO
Tanzania’s government is dedicated to maintaining its tourist resources and improving infrastructure to increase revenue. To ensure quality and professionalism, the Tourism Division of the Ministry of Natural Resources and Tourism has created guidelines for tourism operators. These guidelines cover the registration and licensing process for various tourism businesses.
Who Can Operate? A Breakdown of Foreign and Local Ownership
While the Tanzanian tourism landscape is welcoming to foreign investment, specific sectors are reserved for local entrepreneurs to promote local ownership and participation. According to the Business Licensing (Prohibition of Business Activities for Non-Citizens) Order, 2025, several activities are now prohibited for non-citizens.
Tourism Activities Open to Both Tanzanian and Foreign Operators:
- Tour Operators: Both citizens and non-citizens can register as tour operators. Non-citizen-owned companies must have a fleet of at least 10 new 4WD vehicles that are no more than five years old from their first registration. They must also provide proof of registration with the newly formed Tanzania Investment and Special Economic Zones Authority (TISEZA), which has taken over the functions of the Tanzania Investment Centre (TIC).
- Hunting Safaris: Both citizen and non-citizen companies can apply for registration for hunting safaris. Applicants must provide proof of ownership of hunting blocks and other equipment and adhere to regulations from the Wildlife Division.
- Accommodation Facilities: Both citizens and non-citizens can apply for a license to operate accommodation facilities.
- Other Adventure Businesses: A variety of adventure tourism businesses, such as Hot Air Balloon Safaris, Air Charters, Horse Riding, and Boat Safaris, are open to both citizen and non-citizen companies. Applicants must be registered with and authorized by the relevant authorities and have appropriate insurance for motor equipment and clients.
Tourism Businesses Reserved Exclusively for Tanzanian Citizens:
The following sectors are reserved for companies fully owned by Tanzanians, as stipulated in the Tourism Act No. 11 of 2008, section 58 (2):
- Car Hire Business: Only companies fully owned by Tanzanian citizens can be registered for car hire services. These companies must have a fleet of at least three roadworthy vehicles, with the number increasing to five or more within 24 months.
- Travel Agents: To register as a travel agent, the company must be fully owned by Tanzanians. Additionally, the company must employ at least two Tanzanian citizens who hold an International Air Transport Association (IATA) Certificate or Diploma.
- Mountain Climbing/Trekking: Registration for this activity is exclusively for companies fully owned by Tanzanians.
- Tour Guides: Only Tanzanian citizens who are at least 21 years old and have a secondary school education or higher can be registered as tour guides. They must also have at least one year of relevant experience, adequate knowledge of the area, a valid first aid certificate, and must have passed a relevant examination. Furthermore, the Business Licensing (Prohibition of Business Activities for Non-Citizens) Order, 2025, explicitly prohibits non-citizens from engaging in “Tour guiding within the country”.
Understanding Destination Management Companies (DMCs) in Tanzania
The guidelines do not use the term “Destination Management Company” directly, but a DMC’s functions fall under the broad definition of a “Tourism agent”. A “Tourism agent” includes a tour operator, travel agent, or any person who provides services to tourists.
Therefore, whether a DMC can be foreign-owned depends on its core business activities:
- If your DMC’s business model primarily involves activities like selling tickets and arranging tourist accommodation, it aligns with the definition of a Travel Agent. This business is reserved for companies fully owned by Tanzanian citizens.
- If your DMC focuses on providing professional ground transport for game viewing and selling tour packages, it falls under the Tour Operator category. This business is open to non-citizens, provided they meet the specific vehicle and registration requirements.
For any company looking to start a tourism business in Tanzania, a careful review of these guidelines is essential. Understanding the specific requirements for registration and licensing, particularly regarding ownership and business activities, is the first step toward a successful and compliant operation. All licenses are valid for one year and expire on December 31st of each year.
By Sunday Ndamugoba, Partner at RIVE & CO.