The tourism business in Madagascar is experiencing robust growth, now contributing significantly to the country’s economy by accounting for approximately 13% of its Gross Domestic Product (GDP).
In 2024, the Ministry of Tourism reported over 259,000 tourist arrivals and nearly half a billion euros in revenue, with expectations to surpass 400,000 arrivals by the end of 2025.
With these positive prospects, it’s a good time to take a closer look at Madagascar’s tourism sector. This article explains the steps to start a tourism business, shares business ideas suited to the local market, and looks at the sector’s outlook for the coming years.
TL;DR: Tourism in Madagascar is growing, offering opportunities in eco-lodges, cultural programs, coastal resorts, and religious tourism. All businesses need proper licenses and prior approvals, and Madagascar Invest can help with the setup process.
How to Start a Tourism Business in Madagascar?
Starting a tourism business in Madagascar involves specific steps depending on the activity. While requirements vary, all operators must register officially, comply with tax obligations, and obtain the appropriate permits to ensure legality and credibility.
Hotels and Restaurants
The approval process begins with the Ministry of Tourism, which conducts site checks and issues the necessary permits. You can see a detailed process in our previous article regarding Starting a Hospitality & Restaurant Business in Madagascar.
Travel Agencies
Agencies must register with the relevant authorities and obtain a travel operator license. This license is mandatory and typically requires proof of capacity to organize tours, manage bookings, and provide client support.
The full process for opening a travel agency or tour operator is explained in the Madagascar Business Handbook, which can be requested directly on the Madagascar Invest website.
Guides
Independent guides are required to complete official training, secure approval and obtain a professional badge or license. This guarantees quality service, safety, and recognition within the regulated sector.
The Ministry of Tourism in Madagascar provides the required documentation to obtain the authorization of accreditation for the profession of tourist guide .
Transport Services
Operators offering tourist transport – taxis, shuttles, or car rentals – must register with local authorities, obtain commercial permits, and ensure their vehicles meet safety and insurance standards.
Tourism Business Ideas in Madagascar
Tourism in Madagascar revolves around four main segments, each offering promising opportunities for entrepreneurs:
Rural Tourism
Rural tourism continues to attract travelers seeking authentic experiences in nature. Eco-lodges and guest houses located near national parks or in remote villages provide a sustainable way to accommodate visitors while supporting local communities.
Agro-tourism adds another layer of interest, with activities such as guided farm stays, vanilla and spice plantation tours, or wildlife safaris that showcase Madagascar’s extraordinary biodiversity and agricultural wealth.
Cultural Tourism
This aspect is equally appealing, particularly in urban centers and historic towns. Guided city tours can highlight Malagasy history, crafts, cuisine, and architecture, giving visitors a deeper understanding of local traditions.
Entrepreneurs can also create packages around artisanal workshops, cooking classes, or cultural immersion programs, and even support or organize local festivals that connect tourists to Madagascar’s vibrant heritage.
Coastal Tourism
Coastal tourism remains one of the country’s strongest assets. Madagascar’s islands and beaches, such as Nosy Be and Sainte Marie, are ideal for developing diving and snorkeling centers, boat excursions, or kite surfing schools.
Entrepreneurs may also consider building sustainable beach resorts that combine leisure with eco-conscious practices, targeting the growing demand for responsible travel.
Religious Tourism
This activity is a niche, yet growing segment. Pilgrimage tours to sacred sites and historic churches, as well as packages built around religious festivals, offer a unique perspective on Malagasy spiritual traditions. Such initiatives can attract both local and international travelers interested in cultural faith experiences.
Successful tourism businesses often thrive by blending these categories. For example, an eco-lodge might include cultural and culinary workshops, while a guiding service could integrate transport to create seamless multi-site tours.
By matching innovative ideas with Madagascar’s natural beauty, cultural richness, and spiritual depth, entrepreneurs can build tourism businesses that are both profitable and sustainable in the long term.
Madagascar’s Tourism Business Forecast
Tourism remains one of Madagascar’s most important economic pillars, both as a source of foreign currency and as a driver of employment. Recognizing its potential, the government has set ambitious goals for the sector, including attracting one million visitors by 2028.
These efforts are supported by major initiatives such as the annual International Tourism Fair, which raises the country’s visibility, and new developments in international air connectivity, with airlines like Emirates investing in fresh routes and expanded services.
Positive Growth Outlook
For 2026, the outlook for Madagascar’s tourism industry is highly positive. Tourism receipts are projected to grow steadily, with revenues expected to reach 407 million US dollars by 2028, up from 357 million in 2023.
Visitor arrivals are forecasted to increase at an annual average rate of nearly 6%, driven by growing demand from Europe and neighboring African regions. This momentum is expected to strengthen Madagascar’s role as a distinctive destination in the Indian Ocean, known for its biodiversity, cultural richness, and untouched landscapes.
Tourism as an Economic Driver
In the long-term, Madagascar GDP Annual Growth Rate is projected to trend around 4.20% in 2026 and 4.50% in 2027, with tourism standing alongside agriculture and mining as one of the key engines of expansion.
As tourism revenues grow, the sector will continue to create jobs, stimulate local economies, and generate opportunities for investment across related industries such as hospitality, transport, and cultural services.
Infrastructure as the Key to Sustainability in the Tourism Business
Sustaining this growth depends on crucial structural improvements. Investments in infrastructure, particularly air and road links, remain essential to accommodate rising numbers of international visitors and ensure smooth travel across the island. Enhanced connectivity will not only increase Madagascar’s accessibility but also maximize its appeal as a competitive destination in the region.
Key takeaways:
- Tourism in Madagascar is experiencing steady recovery and growth, with positive forecasts showing expanding opportunities across the sector.
- Within this dynamic context, entrepreneurs can explore business ideas ranging from eco-lodges and cultural immersion programs to coastal resorts and religious tourism packages.
- Each activity type requires prior approval and licensing, ensuring quality and professionalism in the industry.
Conclusion
Madagascar’s tourism sector is expanding, offering exciting opportunities for entrepreneurs in eco-tourism, cultural experiences, coastal resorts, and religious tourism. With growing international interest and government support, the market is becoming increasingly dynamic and profitable.
All tourism activities require prior approval and licensing to ensure quality and professionalism, and Madagascar Invest can help you start your business smoothly, providing guidance to navigate administrative procedures and turn your ideas into a successful venture.
