Dar property investors eye profits amid Airbnb boom

With average monthly revenue per listing standing at $693 (about Sh1.76 million) and premium locations earning between $1,000 and $1,200, the business is booming thanks to growing demand from international visitors.

According to Airbtics data released in July 2025, Dar es Salaam has 1,167 active Airbnb listings. These properties typically generate about $8,000 annually, with an average daily rate of $49 and an occupancy rate of 48 percent.

“While this occupancy rate indicates some seasonality and risk, especially for those seeking year-round bookings, the short-term rental market remains a lucrative avenue for many,” the report notes.

Airbnb, a global platform connecting property owners with travellers seeking alternatives to traditional hotels, is increasingly helping Dar residents tap into the city’s expanding tourism sector.

High demand from international visitors

The report shows that 85 percent of Airbnb guests in Dar es Salaam are international travellers, with visitors from the United States forming the largest group. June and July remain peak booking months, coinciding with Tanzania’s tourism high season.

Figures from the Bank of Tanzania (BoT) indicate the country earned $3.87 billion in tourism revenue in the year ending July 2025, up from $3.73 billion the previous year. The increase was driven by a rise in international arrivals from 2,026,378 to 2,249,387.

Experts note that monthly earnings can be even higher depending on location and the number of rooms. However, many hosts earn less because of manual bookings and informal negotiation methods, which reduce consistency and limit protection.

Compliance and risks

Despite its potential, analysts caution that investors and hosts must be aware of local regulations. While Dar es Salaam’s short-term rental rules remain relatively lenient, zoning laws may apply depending on the area.

Hosts are generally required to register their properties with local authorities and comply with licensing limits. Tax compliance is also essential to ensure legal operation and fair contribution to the local economy.

Airbnb Management, Coaching & Hosting consultant, Ms Judith Mwanri, told The Citizen that while Airbnb is a promising business model, challenges remain.

“It’s a good business. In places like Posta, Masaki and Mikocheni, hosts can earn up to $1,200 per month,” she said. “However, some hosts prefer cash payments, which can lead to losses if guests damage the property because there is no refund mechanism in place.”

She added that some visitors complain when they find properties listed on social media do not match what is offered in person, leading to disputes and reduced payments.

“But through Airbnb, the house posted is the same house booked,” Ms Mwanri explained. “We also monitor guest behaviour, and any damage caused is deducted directly from their payment card.”

Skills gap among hosts

Beyond platform protections, stakeholders stress the need for improved digital literacy among hosts.

“Some people quit the business simply because they don’t know how to use the platform properly,” Ms Mwanri said. “We try to coach them, but many still look for shortcuts, which leads to losses.”

She emphasised that with proper training and adherence to best practices, Airbnb can offer Tanzanians a sustainable income stream. “The business is progressing well for those who follow the procedures.”

Competition with hotels

The Tourism Confederation of Tanzania (TCT) executive director, Ms Lathifa Sykes, recognised Airbnb and other short-term rental platforms as a growing force in the country’s accommodation industry.

She said the platform’s strength lies in its flexibility and affordability compared to traditional hotels.

“What gives Airbnb its power is the basics: simple registration, platform ID checks, clear rules and enforcement, plus competitive prices. This is what travellers are looking for. It’s convenient and cost-effective, so naturally, it creates strong competition for hotels,” she said.

But Ms Sykes noted that Airbnb’s contribution goes beyond competition, as it also broadens access to tourism opportunities for ordinary Tanzanians.

“Airbnb is not just about extra rooms for visitors. The platform lets local people participate directly in tourism by offering their homes. That inclusivity is important because it spreads tourism income to more households and communities,” she explained.

She stressed, however, that while the sector welcomes innovation, a balanced framework is needed to ensure fair play between hotels and short-term rentals.