Tanzania is tightening control over foreign currency use in the tourism industry. A new directive requires all tourists to pay park fees and other charges in Tanzanian shillings, converted at the official exchange rate.
“All tourism business operators, tour guides, individuals or institutions issued with Control Number in US dollars before July 1, 2024, will need to pay based on the currency specified in perspective Control Number until August 1, 2024,” the notice from Tanzania’s Ministry of Tourism and Natural Resources stated.
This follows a broader government effort to limit dollar transactions and strengthen the shilling.
The tourism sector, a major source of foreign exchange for Tanzania, previously relied heavily on the US dollar. The government aims to curb black-market dollar trading and boost shilling reserves.
However, the mandatory use of shillings could discourage tourists and harm the industry.
This policy reflects a global trend of countries seeking to reduce dependence on the US dollar. Rising US interest rates are causing dollar shortages, prompting some nations to explore trade in local currencies.
The recent end of the US-Saudi Arabia “petrodollar” agreement is another factor driving de-dollarization efforts.
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