Tanzania’s Growing Hotel Industry: How Cloud Is Powering It

Tanzania's hospitality sector is undergoing a remarkable transformation, fueled by a boom in tourism. By April of this year, the country had already surpassed its 2025 tourism target, attracting 5.3 million international visitors, which signals a promising trajectory for the travel industry. This article delves into how Tanzania's hotel sector is primed for significant expansion alongside rising tourism, highlighting the crucial role of cloud-based solutions in driving this growth. Additionally, we will explore why platforms like Hotelogix are at the forefront of this transformation.

Tourism: The Growth Engine

In 2023, the sector contributed TZS 18.6 trillion to the economy, surpassing pre-COVID peaks. The World Travel & Tourism Council (WTTC) predicts this will climb further and reach TZS 30.9 trillion by 2034. Europe remains the largest source of visitors, followed by Asia, the Americas, and Africa. The government's focus on high-income, eco-conscious tourists ensures sustainable growth, with initiatives promoting eco-tourism and cultural preservation. By 2030, Tanzania aims to host about 3 million visitors annually, necessitating a significant increase in hotel capacity. 

Tanzania’s Hotel Industry: A Snapshot

As of 2021, the country had approximately 8,700 available hotel rooms. The number of hotels under development is also rising, with 3,432 rooms in the pipeline as of early 2025, part of Africa's broader 13.3% increase in hotel construction. Forecasts suggest the hotel market will grow at a 5.10% CAGR from 2024 to 2029, reaching a market volume of US$445 million by 2029. By 2030, according to experts, the sector will add thousands more rooms to accommodate growing demand, particularly in key regions like Dar es Salaam, Arusha, and Zanzibar.

Diversity in Hotel Types

The spectrum is broad, from eco-lodges nestled in natural reserves to city hotels in bustling urban centers. Boutique hotels are gaining popularity, appealing to travelers seeking personalized experiences. Moreover, with increased luxury travel, new high-end developments are on the horizon, promising to enhance Tanzania's appeal to affluent tourists.

Adoption of Technology: The Era of Cloud

Initially, hotels in Tanzania hesitated to embrace new technologies, primarily because of the high investment costs. However, this has changed as cloud-based solutions have become more accessible. Plus, the industry's attempt to recover quickly from losses during the COVID period has also promoted rapid technology adoption among hotels of all types. Additionally, government regulations and compliance requirements necessitate that hotels use the appropriate technology platform.

Hotelogix: Leading the Cloud Migration

Here is what Niels van Capel, Financial Controller at Paradise & Wilderness Group, has to say about Hotelogix - 

"Hotelogix has offered us the much-needed centralized control over everything - from managing rates across properties, accessing several group-wide reports to gain insights into our performance, and knowing guest preferences via central guest history. They have impressed us with faster implementation, seamless integration, and support via a dedicated account manager."

Paradise & Wilderness Group manages 25 properties, including lodges close to famous national parks, resorts, and boutique hotels in and around beautiful beaches. 

Hotels in Tanzania require a modern technological framework to drive growth and enhance guest experiences. To accelerate this process, Hotelogix provides a cloud-based, flexible infrastructure with robust tools and features to streamline operations and improve service delivery. 

We will be attending Kilifair 2025, East Africa's largest tourism fair, from 6th to 8th June 2025. Let's catch up, and we will show you how Hotelogix can fuel your hotel’s overdue growth with its scalable solutions.