Tanzanian province of Zanzibar has seen a significant increase in its current account surplus the last one year thanks to the tourism sector contribution. According to the Bank of Tanzania, the current account balance witnessed a significant growth, reaching a surplus of USD 506.9 million in the year ending May. This marks a rise of over 30 pc from surplus of USD 389.1 million recorded during the corresponding period last year.

“The development was largely associated with an increase in service receipts, particularly from tourismrelated activities,” says the Tanzanian Central Bank in its latest monthly economic review.

The bank says that tourism sector’s robust performance has been a key driver of Zanzibar’s economic growth, contributing significantly to the balance of payments.

The report adds that service receipt, particularly tourism rose by 12 pc to USD 1.020 billion, following increased tourist arrivals. Generally, exports of goods and services amounted to USD 1.084 billion a year to May, higher than USD 975.8 million in a similar period last year, owing to an increase in service receipts.

Conversely, cloves exports declined by 32 pc to USD 28.9 million from the level recorded in the corresponding period last year, due to the cyclical nature of the crop.

Experts highlight that the surge in tourist arrivals and increased visitor spending have bolstered service revenues, thereby enhancing the current account surplus. This trend underscores the importance of tourism as a vital component of the nation’s economy. A province of Tanzania, Zanzibar has a unique economic structure shaped by its history, geography and political status.