The Bank of Tanzania has confirmed an exemption for the tourism sector under the Foreign Exchange Use Regulations following formal advocacy efforts by the Tanzania Association of Tour Operators (TATO).
The exemption addresses concerns about the operational impact of regulations limiting foreign currency use for domestic transactions.
A letter signed by Yamungu Kayandabila, Deputy Governor of the Bank of Tanzania, on July 8 confirms the following measures:
- Resident tour operators may use foreign currency (US$) on behalf of non-resident tourists to pay for goods and services in Tanzania.
- Tour operators may use foreign currency to purchase tourism vehicles from domestic suppliers.
- Tourists can choose to pay in Tanzanian shilling, which remains legal tender.
The exemption offers clarity on permitted transactions and removes uncertainty about the legality of US$-based payments in tourism.
Background to the exemption
The Foreign Exchange Use Regulations, introduced in April 2025, aim to strengthen the use of the Tanzanian shilling and restrict domestic transactions in foreign currencies. However, stakeholders warn the rules could negatively affect tour operators servicing international clients.
TATO’s formal submission argues that the tourism sector, contributing over 17% to GDP and employing more than 1.5 million people, requires a tailored exemption to avoid unintended harm.
TATO says the next step is ensuring consistent interpretation across institutions and supporting members in aligning with the new provisions.
Workshops and training on compliance are being planned alongside continued engagement with the Bank of Tanzania and the Ministry of Finance.
“This exemption sets a precedent for how future policy frameworks can be more inclusive and tailored to the needs of vital economic sectors,” says TATO.
