By Business Insider Reporter
Tanzania’s tourism industry is facing growing backlash following the government’s decision to introduce mandatory travel insurance for all foreign visitors, a move that industry leaders warn could undermine the country’s international appeal and competitiveness.
The policy, announced as part of the 2025/26 fiscal budget, will require all tourists entering Tanzania to pay a non-negotiable fee of US$44 (€37) per person upon arrival, regardless of whether they already have private or international travel insurance.
The move follows Zanzibar’s controversial introduction of a similar scheme earlier this year – charging US$44 per adult and US$22 per child – which has already led to cancellations and rerouting by international tour operators, particularly in high-value markets.
Section 134A of the Finance Bill passed recently by the Parliament and signed nby President Samia Suluhu Hassan into law, requires that a foreigner entering Mainland Tanzania through land, seaport or airport shall, to, upon
arrival, purchase an inbound travel insurance policy at a premium amount of local currency equivalent to US$44.
According to the new law, the purpose of the inbound travel insurance is to provide emergency assistance to
foreigners for a maximum stay of ninety two days from the date of arrival in the event of medical emergency; loss of luggage or emergency medical evacuation or repatriation.
Industry in uproar
The Tourism Confederation of Tanzania (TCT), the country’s umbrella body for private-sector tourism stakeholders, has sharply criticised the policy, citing lack of industry consultation and poor communication from the government.
“Tanzania is increasingly perceived as engaging in stealth taxation,” said Lathifa Sykes, Executive Director of TCT. “This insurance lacks transparency, global credibility, and does not align with the expectations of experienced international travellers.”
TCT expressed concern that independent travelers (FITs) – often high-spending and highly insured – are particularly frustrated. Some agents have compared the policy to “a checkout aisle,” where unexpected charges surface just before travel is finalised.
The tourism body is also demanding clarity on whether tourists visiting Zanzibar and mainland Tanzania would be forced to pay two separate insurance fees, calling the current lack of harmonisation “deeply damaging” to Tanzania’s image.
No clear benefits, no clear coverage
Operators report confusion around what the mandatory insurance actually covers.
There is no formal documentation outlining benefits, claims processes, or details on medical provider networks, raising concerns over the credibility and effectiveness of the scheme.
“There’s no roadmap, no reinsurance clarity, and no recognised international underwriter. It’s being rushed without stakeholder engagement,” said Sykes.
A competitive disadvantage?
Tourism operators warn that the policy may render Tanzania less attractive compared to regional competitors like Kenya, Rwanda, Botswana, and South Africa, none of which enforce mandatory government-approved travel insurance.
“While Namibia allows tourists to provide proof of their own cover, Tanzania is creating friction,” said Richard Trillo, East Africa Manager at Expert Africa. “The moment these policies feel like revenue-generating tactics rather than genuine safety measures, trust erodes.”
According to Trillo, travellers are already navigating multiple entry requirements and rising costs. “Add opaque, compulsory charges with no visible benefit, and you discourage repeat visits.”
Divided opinions among operators
While many see the policy as harmful, others suggest its impact may be minimal.
Byron Thomas, Senior Destination Specialist at Natural World Safaris, noted that most tourists only learn of the insurance requirement post-booking, which limits its influence on decision-making.
“To be honest, it hasn’t really affected client confidence,” Thomas said. “By the time they discover the fee, their travel plans are usually locked in.”
However, critics argue that this may not hold as awareness grows – especially if other countries offer more traveller-friendly models.
What’s at stake
Tourism remains one of Tanzania’s top foreign exchange earners, contributing nearly 10% of GDP and employing hundreds of thousands. With the sector still recovering from pandemic-related losses, stakeholders worry that policies perceived as opportunistic or unclear could undo fragile gains.
“We are rebuilding confidence. This kind of policy – if not properly designed or explained – can damage our brand and cost us more in lost bookings than it gains in revenue,” said Sykes.
Calls for dialogue and reform
TCT and other stakeholders are now calling for urgent dialogue with the Ministry of Natural Resources and Tourism, and the Ministry of Finance, to reassess or redesign the policy with industry input. Until then, Tanzania’s ambitious tourism growth targets could face headwinds, as operators and travelers weigh the cost of entry against the value of experience.
