Tourism earnings have almost gone up in Tanzania.
PROMOTIONAL activities implemented by the government and private sector have contributed to the increase in the number of tourist arrivals in the year to May thus boosting up tourism earnings.
The Bank of Tanzania (BoT) monthly economic review for June shows that tourism earnings grew by 678.04bn/-, representing 14.6 per cent change compared to 378.6bn/- posted on the corresponding period last year.
During the period under review, the services account improved by 14.9 per cent to a surplus of 1,828.8 million US dollars, following increase in services receipts that grew by 9.0 per cent to 3,995.8 million US dollars.
Moreover, receipts from transport services which hold 30.4 per cent of services receipts was 1,214.7 million US dollars, higher than 1,119.3 million US dollars in the year to May 2017 following an increase in transit goods to and from neighbouring countries.
Service payments rose by 4.5 per cent to 2,167.0 million US dollars on account of an increase in payments related to construction, government, financial and other business particularly consultancy and legal services.
Conversely, transportation and travel payments, which all together accounted for 76.1 per cent of foreign service payments, went down by 8.9 per cent and 0.4 percent to 805.4 million US dollars and 842.7 million US dollars, respectively.
Decline in transport service payments was in line with the contraction in goods imports. The overall balance of payments improved to a surplus of 1,352.8 million US dollars from a surplus of 620.0 million US dollars on account of increase in of-ficial current transfers in the form of project grants coupled with government receipt of funds from external non-concessional loans.
Meanwhile, gross foreign assets of banks amounted to 795.2 million US dollars compared with 663.3 million US dollars at the end of last May.
Gross official reserves amounted to 5,528.0 million US dollars at the end of May that was sufficient to cover 5.7 months of projected import of goods and services, excluding imports financed by foreign direct investment.