Trend and Opportunities for Enhancing Domestic Resource Mobilization in Tanzania: A case on Non-Tax Revenue in the Tourism Sector

Domestic Resource Mobilization (DRM) is a fundamental pillar of Tanzania’s fiscal sustainability, with non-tax revenue (NTR) from the tourism sector offering significant but underutilized potential. Over the past decade, NTR collection has demonstrated steady growth, reflecting the government’s efforts to enhance revenue mobilization. However, its contribution to GDP remains modest due to administrative inefficiencies, policy fragmentation, and gaps in digital revenue tracking. This study examines trends in NTR collection and explores key opportunities for strengthening its role in DRM. The findings indicate that optimizing NTR in Tanzania’s tourism sector requires targeted policy reforms, including the adoption of automated revenue collection systems to enhance efficiency and transparency. Additionally, strengthening public-private partnerships (PPPs) can foster investment and diversify revenue streams. By leveraging technology-driven solutions, enhancing institutional coordination, and adopting best practices from regional counterparts, Tanzania can maximize the fiscal potential of tourism-based NTR. This study provides actionable policy recommendations to enhance NTR mobilization, supporting long-term economic resilience and reducing dependency on external funding.