One year after Tanzania introduced its controversial Passenger Facilitation Fee (code VI), international arrivals have continued to grow despite industry warnings that the levy would make the destination less competitive.
Introduced by the Tanzania Civil Aviation Authority (TCAA), the levy imposed a mandatory US$45 fee on one-way international flights and US$90 on round-trip tickets.
Billed directly at the point of sale by regional and international carriers, the charge was pitched as a vital self-funding mechanism to overhaul the nation’s air security infrastructure.
Levy background
The origins of the VI tax trace back to a 2023 audit conducted by the International Civil Aviation Organization under its Universal Security Audit Programme. The assessment highlighted a critical vulnerability: Tanzania lacked an integrated, automated framework to pre-screen international passengers before they reached airport arrival halls.
To address the gap, the TCAA earmarked revenues from the levy to install and maintain two interconnected technology systems: the Advanced Passenger Information System, which automatically collects identity data such as full names, passport numbers and nationalities from airline departure manifests before an aircraft takes off, and the Electronic Border Control System paired with Passenger Name Record capabilities, which tracks digital itineraries, ticketing metrics and travel patterns to streamline immigration processing and detect cross-border security risks.
“Relying strictly on treasury allocations for critical aviation security infrastructure is unsustainable in the long run,” the TCAA noted during the policy launch. “The Passenger Facilitation Fee ensures our border security technology remains financially self-sufficient while distributing operational costs equitably among international travellers.”
Only children under two years of age, active airline duty crew and passengers subjected to involuntary rerouting due to mechanical or weather anomalies were exempt. For everyone else, the tax applied across scheduled flights and private charters alike.
The tax immediately drew pushback from global and regional airline federations.
IATA cautioned that the levy exacerbated an already costly operating environment across the continent where government fees are 12% to 15% above the global average.
Regional carriers operating routes into Dar es Salaam, Kilimanjaro and Zanzibar found themselves in an uncomfortable position forced to collect a fee that made base airfares look artificially inflated to end consumers.
Aviation analysts were equally blunt, pointing out that a flat US$90 return fee per international passenger far exceeds the net capital and maintenance costs of software licences and server infrastructure.
Tour operators cautioned that stacking the VI tax alongside visas, park entrance fees and new mandatory travel insurance policies risked making Tanzania one of the most expensive entry points on the continent.
Demand unaffected
Despite these concerns, according to data presented to Parliament by the Ministry of Natural Resources and Tourism, international tourist arrivals grew by 7.1% year-on-year to reach 2.29 million visitors, up from 2.14 million the previous year. Overall tourism revenue surpassed US$4.4 billion, solidifying the sector as the nation’s second-largest foreign exchange earner.
“In our experience, bringing international tourists to East Africa, the introduction of Tanzania’s passengers fees hasn’t dampened the fundamental desire to travel,” said Tina Sayed Nestius of Sweden-based safari specialist Afrikakompaniet. “When a destination offers world-class experiences like the Serengeti or Zanzibar, travellers view these administrative requirements as a minor necessity rather than a reason to cancel their plans.”
To offset the extra fees, budget travellers are simply staying fewer days or skipping extra domestic flights.
“The issue isn’t whether government fees exist but about ensuring the value proposition matches the cost,” added a tour operator who wished to remain anonymous. “If these revenues directly fund seamless airport processing, enhanced security and superior infrastructure, travellers will accept them. But to protect regional competitiveness, authorities must continuously audit these levies to prevent compounding overheads from stifling long-term aviation and tourism growth.”
