East Africa’s tourism sector is making a strong post-pandemic comeback with Kenya, Tanzania, Uganda and Ethiopia all reporting solid growth in visitor spend, job creation and GDP contribution.
According to the latest World Travel & Tourism Council (WTTC) Economic Impact Research, in partnership with Oxford Economics, Kenya’s travel and tourism sector is projected to contribute KSh1.2 trillion (€8.1 billion) to the economy in 2025, up 24% from 2019, accounting for 7.2% of the country’s GDP. The sector supports 1.7 million jobs and generates US$2.2 billion (€1.9 billion) in visitor spend – up from US$2.1 billion (€1.8 billion) the previous year.
Tanzania’s tourism industry, worth US$8.7 billion (€7.6 billion), makes up a large share of its economy – 10.3% of GDP – supporting the same number of jobs as Kenya and attracting US$3.9 billion (€3.4 billion) in visitor spend.
Uganda expects tourism to contribute US$3.5 billion (€3 billion), accounting for 5.9% of GDP, employing over 800 000 people and attracting US$1.6 billion (€1.4 billion) in visitor spend.
Ethiopia expects tourism to inject US$13.7 billion (€12 billion) into the economy in 2025, supporting 3.6 million jobs and generating US$5.6 billion (€4.9 billion) in visitor spend.
“Each country’s tourism sector reflects its economic structure,” said Julia Simpson, President and CEO of the WTTC. “Kenya’s 7.2% contribution to GDP may look smaller than Tanzania’s 10.3% but it suggests a more diversified economy, similar to what we see in developed markets like the UK.”
Looking ahead, the WTTC forecasts that Kenya’s tourism sector could grow to KSh1.8 trillion (€1.6 billion) in the next decade, supporting 2.2 million jobs.
Opportunities for growth
Simpson identified several high-potential tourism segments:
- Luxury and wellness: Growing global demand creates opportunities to offer retreats and medical wellness experiences in tranquil settings.
- Adventure and nature-based tourism: East Africa's landscapes are ideal for trekking, biking, rock climbing and paragliding, and promote lesser-known parks and reserves.
- Culture and heritage: “Countries like Ethiopia, Uganda, Tanzania and Kenya could better showcase their rich heritage – from Swahili coastal settlements to ancient churches in Lalibela to the rich local cultures in Uganda. There’s a lot to be learned from markets like Canada and Australia that have successfully integrated indigenous tourism,” said Simpson.
- MICE and business travel: Nairobi, Kampala and Kigali are positioning themselves as conference hubs with infrastructure improvements making a difference.
- Film and creative tourism: East Africa could promote destinations featured in international films. “You have the landscapes and the stories – why not use them to attract cine-tourists?” Simpson said.
- Shopping: Promoting local crafts, beadwork and textiles, especially at airports and lodges, adds cultural value and supports local economies.
New source markets
While the US and China remain key, Simpson said India and Japan are emerging markets. “India is growing fast due to its expanding middle class. Chinese and Japanese travellers are increasingly interested in nature and authenticity.”
However, she emphasised that the US market remains crucial to the region’s tourism economy. “Even though Americans are currently facing economic pressures, they are still travelling – just being a little more selective about how and where they spend.”
She also pointed out that, despite some fluctuations, the US dollar remains a strong currency, making East African destinations relatively affordable for American tourists.
“East Africa has all the elements needed to succeed: diverse landscapes, rich culture, increasing domestic travel, and a growing global interest in sustainability and authenticity. With the right policies and investment, this region could become a world leader in sustainable tourism,” Simpson said.
