Tanzania Proposes Compulsory Travel Insurance for International Visitors, Sparking Strong Reactions from Operators and Tourists

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Tanzanian government is exploring the implementation of a mandatory travel insurance fee for all foreign non-residents entering the country

In a move aimed at increasing the country’s national revenue and bolstering its insurance sector, the Tanzanian government is exploring the implementation of a mandatory travel insurance fee for all foreign non-residents entering the country. This new initiative is expected to be part of the country’s budget for the 2025/2026 fiscal year, and it would require international travelers to pay for an insurance policy upon arrival, regardless of the purpose of their visit.

The proposed fee is set at USD 44 per person. The coverage would encompass a range of services, including medical emergencies, accidents, and baggage-related issues, offering a safety net for travelers during their stay. The policy would be valid for 62 days from the date of arrival and would be non-refundable, meaning that travelers cannot reclaim the cost if they leave the country earlier than planned.

Exemptions to the new requirement are being considered for citizens of East African Community (EAC) member states, which include countries such as Kenya, Uganda, and Rwanda. Additionally, there have been discussions around exempting nationals from the Southern African Development Community (SADC), although no official statements have confirmed this yet.

The administration of the mandatory travel insurance scheme is likely to be handled by the National Insurance Company (NIC), with authorized agents overseeing the distribution of policies. A significant concern that has been raised by industry stakeholders, particularly those in the tourism sector, is whether travelers will be able to purchase this insurance online prior to their arrival. Without the option for online pre-purchase, travelers could face confusion or delays at entry points, especially at busy airports or border crossings, potentially leading to a negative experience for visitors and creating bottlenecks at immigration.

Local tour operators, especially those in major tourist destinations like Arusha, have raised alarms about the additional financial burden this insurance requirement could impose on travelers. Many argue that international visitors often arrive with their own travel insurance, which already covers medical emergencies and other issues typically included in the mandatory policy. From the perspective of these operators, this new fee could be seen as redundant and might even discourage budget-conscious travelers. “This could make Tanzania less competitive compared to other destinations in Africa, where such policies are not in place,” one operator explained.

This move mirrors a similar policy introduced by Zanzibar in October 2024, where foreign visitors were required to pay for insurance as part of their travel entry. Zanzibar, while part of Tanzania, has its own autonomous government, and its travel insurance requirement has already drawn attention for its potential impact on tourism. In Zanzibar, foreign adults must pay USD 44 for insurance, while children aged 3 to 17 pay USD 22. Infants are exempt from the charge, and travelers must purchase the insurance through the Zanzibar Insurance Corporation (ZIC).

The Tanzanian government’s proposed policy to introduce a national travel insurance fee for foreign visitors follows a broader trend seen in several countries that seek to boost their domestic insurance markets and provide greater security for visitors. This fee would also serve as a new revenue stream for Tanzania, which could help fund various government projects, including infrastructure development. However, the policy could also have unintended consequences for the tourism industry, particularly by adding an additional cost to an already expensive global travel experience.

Tourism industry experts are closely monitoring the situation, as many questions remain unanswered regarding the implementation details of the policy. For example, there is uncertainty about whether the insurance will be available for purchase online in advance, or whether travelers will have to pay for the insurance at entry points upon arrival. How the policy will be enforced at various entry points across Tanzania also remains unclear.

The impact of the proposed insurance policy on Tanzania’s tourism sector could be significant. While it may offer additional financial protection for travelers and help boost local insurance markets, it also introduces an extra cost for foreign visitors. This could discourage tourists, particularly those traveling on a budget, from choosing Tanzania as their destination. Moreover, the mandatory insurance fee may create administrative challenges for the government, as it seeks to manage and enforce the new requirement across busy entry points.

In conclusion, the introduction of a mandatory travel insurance fee in Tanzania could help support the country’s insurance industry and provide added protection for travelers. However, the success of this policy will largely depend on how it is implemented and whether it negatively impacts the country’s competitiveness in the tourism market. The Tanzanian government will need to carefully balance the benefits of the new insurance requirement with the potential challenges it may pose to the country’s tourism industry.