Tourism earnings up as arrivals rise

The Bank of Tanzania (BoT) monthly economic review for the year ended March 2017 the increased tourism earnings contributed largely to the improvement of services account by 32.1 percent to a surplus of 4.23tri/- (1,925.8 million US dollars) in the period under review.

The increase in transit goods to and from the neighbouring countries transport receipts grew by 9 percent to 2.59tri/- (1,177.3 million US dollars) contributed to the improved services account.

Services receipts amounted to 8.83tri/-(4,014.0 million US dollars) and were 11.2 percent higher than 7.90tri/- (3,593.7 million US dollars) realized in the year to February 2017, largely following increase in travel and transport receipts.

Service payments was 4.59tri/- (2,088.2 million US dollars) in the year ended February compared to 4.51tri/- (2,051.6 US dollars) paid in the corresponding year 2017, largely contributed by lower foreign payments for transport.

Transport foreign payments, which accounted for the largest share of services payments of about 37.5 percent, dropped by 15.1 percent to 1.72tri/-(783.1 million US dollars), consistent with the decline in the value of goods imports.

In the meantime, the overall balance of payments improved considerably to a surplus of 3.24tri/-(1,473.0 million US dollars) in the year ending February 2018 from a surplus of 916bn/-(416.4 million US dollars)in the year to February. The improvement was explained by an increase in official current transfers.

Source: Daily News

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