In recent years, Airbnb has quietly transformed into one of the most promising income streams in Tanzania’s real estate sector. What once seemed like a luxury for tourists or diasporans returning home has now become a practical and lucrative venture for savvy investors and ordinary homeowners alike. From the serene beaches of Zanzibar to the urban buzz of Dar es Salaam and Arusha’s tourist-packed hub, Airbnb is proving to be a smart way to earn in both foreign currency and consistent local demand.
But how lucrative is it, really?
The Numbers Behind the Boom
A well-located, well-furnished Airbnb in Dar es Salaam or Arusha can earn between $30 to $120 per night, depending on the quality, size, and location. High-end listings in areas like Mikocheni, Masaki, or Oysterbay regularly charge upwards of $100/night, especially if they offer amenities like air conditioning, hot water, a modern kitchen, WiFi, or even proximity to expat hotspots.
In tourist-heavy areas like Zanzibar or Ngorongoro, the occupancy rate for well-rated Airbnbs during peak seasons (June–October, December–February) can easily reach 70-90%, outperforming traditional long-term rentals which often stagnate with fixed monthly income and higher maintenance burdens.
For example:
- A traditional long-term rental in Dar might go for TSh 1.2 million/month (~$480).
- A modest Airbnb rented at $40/night with 60% occupancy brings in ~$720/month—and you still have flexibility.
Own or Rent? The Strategic Dilemma
Owning Property
Pros:
- Full control over design and renovations.
- Long-term asset appreciation.
- Fewer restrictions on how you operate the Airbnb.
Cons:
- High upfront costs.
- Property tax, maintenance, and legal registration can be tedious.
- Less flexibility if market conditions change.
Owning is best if you already have property in key areas or can afford the capital for long-term investment.
Renting and Subletting
Pros:
- Lower startup costs.
- Quicker to scale multiple listings.
- Great for testing the Airbnb model.
Cons:
- Requires landlord approval (not always easy).
- Legal and ethical grey areas.
- Profit margins slightly lower after paying rent.
If you’re just starting out, consider “rental arbitrage”—renting a property long-term, furnishing it, and listing it on Airbnb for short stays. Just ensure you have the landlord’s written consent and a clear understanding of Tanzania’s tenancy laws.
Top Locations for Airbnb in Tanzania
1. Dar es Salaam
- Best neighborhoods: Masaki, Mikocheni, Oysterbay, Mbezi Beach
- Why: Strong mix of expats, business travelers, and locals who prefer short-term stays.
2. Zanzibar (Stone Town, Paje, Nungwi)
- Why: Year-round tourism, especially from Europe, the Gulf, and Asia. Beachfront villas do particularly well.
3. Arusha
- Why: Gateway to the Serengeti, Kilimanjaro, and safari circuits. Popular with European backpackers and high-end tourists alike.
4. Mwanza & Dodoma
- Growing interest from professionals, NGOs, and local tourism.
- Dodoma, as the political capital, has business traffic potential but requires careful neighborhood choice.
How to Get Started
- Research the Market
- Check Airbnb listings in your target area.
- Identify price ranges, occupancy, and top-rated units.
- Start Small
- Try a single room or small apartment to learn the ropes.
- Use earnings to reinvest in furniture, better decor, or expand to a second unit.
- Furnish Smartly
- Prioritize comfort and aesthetics: clean linen, modern decor, good lighting, and reliable internet.
- A small touch like local art or a welcome basket makes a big difference.
- Hire Local Help
- A trusted housekeeper or property manager ensures you maintain high ratings and quick turnover.
- Take Good Photos
- Invest in professional photography or use a good smartphone in natural light.
- Your photos are your digital handshake—make them count.
- Register Your Airbnb
- While many hosts operate informally, it’s advisable to register your venture with the Tanzania Revenue Authority (TRA) and pay necessary taxes to avoid future issues.
Pro Tips to Stand Out
- Offer airport pickup or tour connections.
- Have a backup power source (very appealing in power-outage-prone areas).
- Respond quickly to inquiries. Airbnb rewards active hosts with higher visibility.
- Ask guests to leave reviews, especially early on. Social proof builds momentum.
Final Thoughts
Airbnb in Tanzania isn’t just a side hustle, it’s a serious income opportunity. With a growing number of domestic and international travelers, rising digital nomad traffic, and an improving payments infrastructure (like Mpesa, Airtel Money, and international card options), the barriers to entry are lower than ever.
Whether you’re a property owner in Dar or someone renting a small apartment in Arusha, Airbnb offers a flexible, scalable, and profitable way to earn. Start smart, reinvest steadily, and keep learning from guest feedback. The returns might just surprise you.
