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Update to newer OS variants (from comments) and make older variant a note after the fact.
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I just tried this under Snow Leopard and it worked beautifully:

  1. Open System Preferences => Keyboard
  2. Go to Keyboard Shortcuts
  3. Click on "Application Shortcuts" on the left
  4. Click the little "+" to add a program
  5. Navigate to Terminal (it's hidden in Applications/Utilities)
  6. For the Menu Title type "Select"Show Next Tab" or "Show Previous Tab" ("Select Next Tab" and "Select Previous Tab" for Mavericks or older) (theseAlso, these items will be different for languages other than English.)
  7. For the Keyboard Shortcut type Ctrl-Tab or Ctrl-Shift-Tab
  8. Click Add. You are g2g!

I just tried this under Snow Leopard and it worked beautifully:

  1. Open System Preferences => Keyboard
  2. Go to Keyboard Shortcuts
  3. Click on "Application Shortcuts" on the left
  4. Click the little "+" to add a program
  5. Navigate to Terminal (it's hidden in Applications/Utilities)
  6. For the Menu Title type "Select Next Tab" or "Select Previous Tab" (these items will be different for languages other than English)
  7. For the Keyboard Shortcut type Ctrl-Tab or Ctrl-Shift-Tab
  8. Click Add. You are g2g!

I just tried this under Snow Leopard and it worked beautifully:

  1. Open System Preferences => Keyboard
  2. Go to Keyboard Shortcuts
  3. Click on "Application Shortcuts" on the left
  4. Click the little "+" to add a program
  5. Navigate to Terminal (it's hidden in Applications/Utilities)
  6. For the Menu Title type "Show Next Tab" or "Show Previous Tab" ("Select Next Tab" and "Select Previous Tab" for Mavericks or older) (Also, these items will be different for languages other than English.)
  7. For the Keyboard Shortcut type Ctrl-Tab or Ctrl-Shift-Tab
  8. Click Add. You are g2g!
more complete answer with "Select Previous Tab" too, short note on languages other than English
Source Link

I just tried this under Snow Leopard and it worked beautifully:

  1. Open System Preferences => Keyboard
  2. Go to Keyboard Shortcuts
  3. Click on "Application Shortcuts" on the left
  4. Click the little "+" to add a program
  5. Navigate to Terminal (it's hidden in Applications/Utilities)
  6. For the Menu Title type "Select Next Tab" or "Select Previous Tab" (these items will be different for languages other than English)
  7. For the Keyboard Shortcut type ctrlCtrl-tabTab or Ctrl-Shift-Tab
  8. Click Add. You are g2g!

I just tried this under Snow Leopard and it worked beautifully:

  1. Open System Preferences => Keyboard
  2. Go to Keyboard Shortcuts
  3. Click on "Application Shortcuts" on the left
  4. Click the little "+" to add a program
  5. Navigate to Terminal (it's hidden in Applications/Utilities)
  6. For the Menu Title type "Select Next Tab"
  7. For the Keyboard Shortcut type ctrl-tab
  8. Click Add. You are g2g!

I just tried this under Snow Leopard and it worked beautifully:

  1. Open System Preferences => Keyboard
  2. Go to Keyboard Shortcuts
  3. Click on "Application Shortcuts" on the left
  4. Click the little "+" to add a program
  5. Navigate to Terminal (it's hidden in Applications/Utilities)
  6. For the Menu Title type "Select Next Tab" or "Select Previous Tab" (these items will be different for languages other than English)
  7. For the Keyboard Shortcut type Ctrl-Tab or Ctrl-Shift-Tab
  8. Click Add. You are g2g!
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user13902
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I just tried this under Snow Leopard and it worked beautifully:

  1. Open System Preferences => Keyboard
  2. Go to Keyboard Shortcuts
  3. Click on "Application Shortcuts" on the left
  4. Click the little "+" to add a program
  5. Navigate to Terminal (it's hidden in Applications/Utilities)
  6. For the Menu Title type "Select Next Tab"
  7. For the Keyboard Shortcut type ctrl-tab
  8. Click Add. You are g2g!