Promoting Competitive Tourism Sector for Inclusive Growth in Tanzania

This report investigates the promotion of a competitive tourism sector for inclusive growth in Tanzania, focusing on the missing linkages between the sector and local communities. It identifies indicators of destination competitiveness and inclusiveness, analyzes specific factors hindering competitiveness, and explores strategic areas for integrating the tourism sector into the local economy. The study also addresses prevailing inclusiveness challenges within the sector, highlighting issues such as limited financial benefits for local communities, a lack of domestic tourism promotion, and poor infrastructure. The research aims to provide insights for policymakers and stakeholders to enhance the tourism sector's contribution to Tanzania's economic and social development by fostering stronger community involvement and addressing key challenges.

Promoting a
competitive tourism
sector for inclusive
growth: A study on the
missing linkages
between the sector and
communities in
Tanzania

Table of Contents
TOPIC: Promoting a competitive tourism sector for inclusive growth: A study on the missing
linkages between the sector and communities in Tanzania.............................................................3
CHAPTER 1: INTRODUCTION....................................................................................................3
1.1 Background of study.........................................................................................................3
1.2 Statement of Problem.......................................................................................................4
1.3 Objective of study.............................................................................................................5
1.4 Research Questions..........................................................................................................5
1.5 Significance of study........................................................................................................5
1.6 Overview of chapters .......................................................................................................6
CHAPTER 2: LITERARTURE REVIEW......................................................................................8
Indicators of destination competitiveness and inclusiveness in Tanzania..............................8
Specific factors that hinder the destination competitiveness................................................10
The strategic areas in which the tourism sector can be integrated into the local economy and
communities and propose the strategies for integration.......................................................12
The prevailing inclusiveness challenges in the sector..........................................................13
CHAPTER 3 : RESEARCH METHODOLOGY..........................................................................16
REFERENCES..............................................................................................................................19

TOPIC: Promoting a competitive tourism sector for inclusive growth: A study
on the missing linkages between the sector and communities in Tanzania
CHAPTER 1: INTRODUCTION
1.1 Background of study
Travel and tourism sector contribute up to a great extend within the economical as well as
social development of a country by creating the jobs, generating prosperity across the world and
drives the exports. This industry consist of wide range of sectors which aims toward serving and
supporting the domestic, internation leisure visitors as well as businesses. Companies ranging
from larger to smaller all contribute toward increasing the economical growth by providing a a
better tourism experience to the visitors by offering variety of accommodations, transportation,
leisure, sports & recreations etc. related services which help in brining the community as well as
organisations all together to perform better services (Masele, 2015). These all are the services
which support in influencing a visitors to visit a particular place and also influence other to travel
at a particular place for satisfying their leisure need. The government mainly contribute toward
promoting the competitive tourism sector in order to ensure the inclusive growth of the sector
and country as well. This is because the competition among the tourism service provider support
in increasing the quality of services they offer to customer in order to stand first in a queue.
Tanzania is an East African Country and most famous place for tourism practices that are
related with safari as well as wildlife related adventure. It is consider to be a most famous place
that consists of national parks, natural attractions and many more places to visit including
majestic Mount Kilimanjaro (Okello and Novelli, 2014). But despite of this the tourism
practices within Tanzania is being growing slowly as compare to other nations or neighbour
countries as it has a few tourist attraction toward the visiting of country. This is so because there
are number of challenges that tourism sector of Tanzania is facing, one among them is little
financial benefits to the community of Tanzania. This is so because the major place of attraction
for tourist are national parks, safaris and beach related area which are being served by the tour
operators, travelling agencies or hotels as well as resorts. Hence all the fund as well as revenue
which get generated through the tourism activities are being earned by the private agencies or
business persons. This issue related with lack of access regarding the benefit to local population
it is increasing the gap between the community as well as tourism sector as there is very less

amount which get spend over the local society as a result of which they contribute less within the
tourism practices. In addition to this another major issue that tourism sector of Tanzania facing is
lack of domestic tourism (Sanches-Pereira and et. al., 2017). It is so because the inbound tourism
is best as it help in ensuring the appropriate flow of foreign revenue but on the other side the
inbound tourism leads to creation of seasonal unemployment at the time of off season. This issue
can be minimized if the promotions related with the domestic tourism can be performed in
effective manner among the citizens. Despite of all this one of the major challenge which has
been found within the tourism sector of Tanzania is poor infrastructure of the country. This is
because better infrastructure as well as general economy performance plays a crucial role within
attracting the tourism to nation. This issue of Tanzania covers lack of direct international flights,
appropriate road facilities, quality accommodation, quality tour operator as well as guide. The
poor quality of these factor left over the negative influence over attracting the tourism as well as
per capita spending.
1.2 Statement of Problem
Tanzanian tourism industry forms up a most crucial part of country's economy as it
contribute up to 9% of its GDP and its employees around 7.1% of work force within Tanzania.
These all plays a crucial role within the growth and development of tourism sector of the
country. Therefore there are number of initiatives are being performed by the government of
Tanzania by providing budget as well as access to fund so that adequate facilities can be
arranged in order to welcome the tourism so that future revenue can be generated (Park and
Kang, 2014).
But apart from this the major issue lies within the tourism sector of Tanzania is that it
faces lack of skilled personnel in tourism as well as hotels sector which leads to increase in the
hiring of foreigners within the businesses. Despite of all this the Tanzania is also suffering from
the world economic crises which is affecting the area of tourism (TANZANIA’S NEW HOPE,
2019). Apart from this several other National parks are being developed and along with this
promotions are also being performed in order to attract the potential through different local as
well as international mediums in order to approach both domestic as well as foreign tourism by
creating awareness among them. This is because the promotional practices have a significant
influence over the tourism performance over a particular destination. In addition to this it also
help in creating awareness among the people and support them in forming tourism related

decisions in term of identifying and choosing a destination by making a comparison if from the
competitive offerings that are available within the marketplace. But the major issue within the
slow growth of Tanzania than that of other neighbouring country is due to less emphases put
upon the branding practices and as a result of which people are not much aware about the
attractiveness of the country as well as tourism product or services it offer (Msuya, 2015). As a
result of which the tourism flow is relatively lower as compare to other countries such as Kenya.
Hence, it can be said the lack of promotional and branding activities are consider to be the major
cause of obstacles that the tourism sector of Tanzania is facing.
1.3 Objective of study
The main objectives of the study is to promote the competitiveness within the tourism
sector by putting emphases toward developing a linkage between the communities as well as
tourism sector within Tanzania. In order to achieve this the sub-objectives are being formulated
which are mentioned below:
 Identify indicators of destination competitiveness and inclusiveness in Tanzania
 Analyse specific factors that hinder the destination competitiveness
 Explore the strategic areas in which the tourism sector can be integrated into the local
economy and communities and propose the strategies for integration
 Identify the prevailing inclusiveness challenges in the sector.
1.4 Research Questions
 What are the key indicators of destination competitiveness and inclusiveness in
Tanzania?
 What are the specific factors that hinder the destination competitiveness?
 Which strategic areas of the tourism sector can be integrated into the local economy and
communities and what are the strategies for integration ?
 What are the prevailing challenges in the tourism sector ?
1.5 Significance of study
The study is performed as it shed up a light over the tourism practices performed within
Tanzania that help in determining its current state (Bakker, 2019). Despite of this it also support
in determining the major challenges which the Tanzania industry is facing along with the
influence it have over the performance of tourism sector within the country. In addition to this it

also sheds up light over the actions which government is taking in order to maximize economic
benefits of tourism sector to the local community. This is because the majority of tourism sites
are being covered by the private business as a result of which tourist mainly make payment to
those business in term of bills or other payment related with the services and those revenue are
not being transferred to the local people. In addition to this the study is also significant as it help
in determining the ways through which tourism products can become more competitive in the
world market.
1.6 Overview of chapters
This section is consider to be most crucial part of the study as it help the researcher in
providing an overview regarding the structure of the study which is to be conducted This will
support in performing the investigation related activities in more systematic manner (Scheyvens
and Biddulph, 2018). This help in providing an appropriate method which is to be carried out in
order to ensure smooth execution of research activities which is to be performed in sequential
manner. It is so because the research is consist of specified structure where each task is being
performs as per the priority of need. The structure to be followed for this investigation is
mentioned below:
Chapter 1 : Introduction
This is the first chapter of dissertation which is basically present an overview to the topic
for presenting an understanding regarding the topic by presenting a brief overview and
background of the investigation along with the direction in which the study will be conducted.
Introduction also provides a detail regarding the statement of problem along with the purpose of
conducting study and signification that a researcher will get with the execution of this researcher
so that reader be able to determine the major importance as well as rationale behind this study.
Despite of all this it also contains an information regarding the aim behind conducting the project
as well as objectives to be covered with the help of this study.
Chapter 2 : Literature Review
It is a second chapter of the dissertation which mainly focusses over gathering the
information from several secondary source available to them and then presenting it as per the
required of study and objective of the research (Gylfason and Nganou, 2016). The main aim of
conducting the Literature review is to generate understanding regarding the current area of study
and determining its nature so that further primary investigation can be performed by creating a

base to study. For performing literature review information is mainly gathered from the sources
like book, journals, online article etc. where the view point of authors are being critically
evaluated to develop understanding regarding the current topic of investigation by considering
previously developed knowledge about it.
Chapter 3 : Research Methodology
This is consider as one of the most essential part of an investigation as it present the
detailed information regarding several tools and techniques that are used by the researcher in
order to gather, evaluate and interpret the information so that best possible outcome can be
achieved that help in accomplishing the research objectives (Anderson, 2015). Hence, it support
in providing guidance to the researcher regarding the direction to be followed in order to perform
the investigation.
Chapter 4 : Data Analysis and discussion
This section consists of a evaluation of information which is gathered throughout the
investigation in order to interpret the data to develop understanding regarding the outcome. The
data analysis provide a detailed understanding regarding the chosen area of study by evaluating
the available information and then performing the discussion over both primary as well as
secondary information so that desired outcome can be achieved.
Chapter 5: Conclusion
Once the data analysis has been performed as well as discussion over primary as well as
secondary data has been performed, then the researcher have to provide a summary of finding in
a conclude manner so that the reader be able to determine the what understanding being created
over the study of issue. In addition to this it also support in identifying that whether the
researcher be able to achieve the research objectives.
Chapter 6 : Recommendation and Reflection
This is the last chapter of the dissertation which contains a detailed regarding several
recommendation that are being provided by the researcher after performing a detailed study over
the issue. This contains recommendation regarding the actions to be performed in order to avoid
or deal with the issue (Mwega, 2016). Additional, this section also present a reflection regarding
the experience of researcher, issues it has faced while performing the research and ways in which
these issues are being tackled by the investigator.

CHAPTER 2: LITERARTURE REVIEW
Literature review is considered to be most crucial part of an investigation as it focuses
toward gathering, evaluating and arranging the information which is already being studied or
published earlier and similar to current study area. Under this section researcher mainly focuses
toward presenting an in depth understanding regarding the current topic of concern by presenting
the view point of several authors from the already performed study. This help in determining the
nature of study so that the researcher be able to perform further investigation by considering
literature review as a base to direct the investigation in further direction for conducting the
primary investigation which help in achieving the main objective behind the study. The literature
review in order to develop understanding regarding the pre established objectives is mentioned
below:
Indicators of destination competitiveness and inclusiveness in Tanzania
As per the view point of Dev Jani and Maria Minde, 2016, tourism is one of the fastest
growing sector where destinations are being at the core of tourism products that is gradually
increasing the competitiveness in the market place by creating a race of attracting more and more
consumer. This has created more stiff competition among the tour operators and is also consider
as the major characteristics of modern tourism market this is so because it attract the tourism
services providers to ensure offering more effective practices in order survive in competitive
market place. These all contribute toward enhancing the quality of operations to be performed
that leads to maximum customer satisfaction. Within the east African countries and being
considered as the major sources of export earning. This growth within the east African countries
make it necessary to create competitive destination which is lacking behind in these countries
which is affecting the performance as well. The east African country like Tanzania is a place
which mainly provide tourism practices related with cultural and natural area's of attraction. The
main factors found within the destination competitiveness are mainly represented within the
model cluster of five main groups such as supporting factor (that consists of facilitating
resources, enterprises, infrastructure and hospitality), Core resources and attractors
(Superstructure, event, climate, entertainment, activities), Qualifying and Amplifying
destinations (location safety, cost, carrying capacity, security) Destination management
(resource stewardship, information, research, service, finances, marketing, organization, visitor
management, crisis management) and destination policies (vision, monitoring, philosophy,

branding, positioning). These all are consider as the indicator of competitiveness for the
Tanzania tourism practices and if these are maintained properly then it support in achieving the
greater growth rate in term of tourism arrival within the country. But The major issue or cause
behind lacking of competitiveness within the sector is air connectivity which remains inefficient
throughout the region which make it difficult for the tourist to visit such places. In addition to
this lack of significant improvement within the use of natural resources that hinder the Africa's
T&T competitiveness. While Tanzania's tourism is mainly derived from the natural tourism
attraction, there remains an ample room for the improvement in tourism practices in term of
communicating, valuing and protecting cultural richness. This is because Tanzania is consider as
the home of natural resources and wildlife globally with its rich landscapes such as Mt.
Kilimanjaro, Zanzibar. Tanzania is consider to be a price-competitive destination where the
government of nation plays a significant role in promoting the travel & Tourism sector. But apart
from this there remains several untapped potentials The cultural resources contribute effectively
by complementing the natural as well as safari tourism offer. In addition to this there are also
some progress within the country's infrastructure particular air as well as the ground transport
that can be act as an indicator to the competitiveness of the tourism practices within the country.
Despite of this, Tanzania is the land of cultural and natural resources which if managed
properly can also be act as a indicator for the competitiveness for the nation's travel and tourism
practices. This is so because the main interest of the tourist within the country like Tanzania is
safari and national park which are being offered by the country as a tourism product.
On the other side, as per the view point of , Tanzania is a place which contains the most
attractive feature that leads to influence the tourists to form up the decision in order to visit the
place. But still there is lack of tourism supply to the nation reason being improper management
of tourism practices. As result of which the Tanzania's tourism industry is not much attractive or
competitive despite of being stand among the top seven destination with abundant within the
natural resources. The main reason behind this are poor tourism infrastructure, inappropriate
health related service, unhygienic environment, less price competitiveness, poor human
resources development and lack of diversification within the tourism related products etc. These
are the major factor that are influencing or act as a constraints to the performance of tourist
industry within Tanzania. Hence, government as well as private tourism service provider must
focuses toward improving these factors that help in bringing the competitiveness within the

industry which in turn further contribute toward growth of travel and tourism sector. The
government must contribute toward enhancing the tourism support services such as infrastructure
in term of airport, road infrastructure etc. This is because the infrastructure act as an indicator to
the competitiveness as tourists wiling to visit place that are rich in infrastructure. Despite of this,
high skilled workforce is also consider to be a major indicator of competitiveness as the
competent workforce support in keeping the tourists satisfied with its services when they get
adequate accommodation related services. In addition to this there are several factors like,
cultural tourism, urban tourism found within the southern circuits, beaches etc. are the rich
factors which Tanzania has and if their are promoted well as go through appropriate branding
then it leads to the competitiveness within the travel and tourism sector which further contribute
toward enhancing the quality of services. Hence the government of Tanzania must set required
fund aside in order to develop appropriate infrastructure such as roads, transports which make
help in enhancing the tourism practices and growth of the sector within Tanzania too.
Specific factors that hinder the destination competitiveness
According to the view point of Sanches-Pereira, A. and et. al., 2017., destination
competitiveness is basically considered as the ability of destination in term of delivering the
goods and services in order to perform better than that of other destinations. It mainly
encompasses of factors like price differentials consists of productivity level of several
components of tourism sector, exchange rate movement and qualitative factors which affect the
attractiveness of destination. The competitiveness of industry is basically refers to a true
indicator of performance of a particular destination within world market. But major factors that
help in achieving the destination competitiveness are infrastructure, cultural and social
attractiveness, natural tourism etc. these all are factor which help in enhancing the quality of
services that are being offered by the nations. Despite of all this there are some factor that
restrict or hinder the destination competitiveness such as inappropriate management of resources,
lack of knowledge and skilled employees, lack of awareness among people etc. These all are the
factors which affect the performance of tourism industry and as a result of which restrict the
sector to being competitive and stand over a position to deal with the competition prevailing in
the market.
As per the information presented by Nicholas Jeremiah, 2015, tourism is becoming
world's largest industry and now becoming one of the fastest growing sector throughout the

world with the anticipation of globalisation concept which supported in reducing the borders or
national boundaries restrictions. Tourism practices now become one of the most crucial section
of the economy as specially for the least developed countries like Tanzania, who's national
budget is still remains at the 46% donor supported. Tanzania is not much economical developed
country as the government of Tanzania not viewed the tourism sector as the priority in order to
enhance the economical condition of the country. The more focus of government remains over
the wildlife conservation and not over the actual utilisation as well as promotion of country's
tourism attraction. As a result of which not appropriate policies are being formulated to run the
tourism practices and encouraging it in the country for the growth of sector. Hence the tourism
practices not remained must concentric from very beginning within the country. Therefore, the
tourism weak administrative practices of Tanzania is consider to be the major hindrance to the
destination competitiveness. Despite of all this, lack of promotional strategies is also consider to
be the another major factor which hinder the growth as well as competitiveness of the tourism
sector. This is a hindrance to tourism competitiveness because the majority of people are not
much aware about the locations to be visited as a result of which they prefer to visit other places
to which are aware and think of having a better experience. Despite of all these other major
factors which hinder the competitiveness of Tanzania's tourism industry are poor tourism
infrastructure, insufficient fund from the government toward the tourism industry and
inappropriate National part policies. These all factors are the one that act as a hindrance to the
competitiveness of the tourism industry of the Tanzania, this is so because it directly influence
the performance of the tourism sector within the nation. This is so because the tourism practices
within the country doesn't get adequate resources or guidance in term of fund as well as tourism
related policies as a result of which the performance is not as per the standard which affect the
visitors satisfaction up to a great extend and as a result of which it affect the competitiveness as
well as the performance of tourism sector in negative manner. Therefore, this is consider to be a
major hindrance to the competitiveness of the tourism practices.
According to the view point of Bakker, M. 2019, travel and tourism sector forms up a
most crucial part of a country's economy as it help in continuing the flow of foreign currency to
the country in order to gain effective growth and success of community. There are number
factors which are consider as asset by several tourism related organisation which they use as a
factor to achieve competitive advantage in the market place. These includes price differentiation,

infrastructure facilities, proper governmental support, natural tourism and many more which
support in attracting the larger number of customers to a particular destination. But apart from
this, there are certain factors that are present within the sector that directly or indirectly hinder
the practices of tourism industry and restrict them to achieve competitive advantage. Tanzania is
one of the most attractive place to get visited as it involve several kind of adventures place that
are related with forests, mountains, beaches, safaris etc. but still the performance of industry is
weak. This is so because there are number of factors like poor tourism infrastructure, unhygienic
environment, poor human resource development, inefficient government or tourism policies etc.
are being consider as the major hindrance to the tourism sector of Tanzania. This in turn have a
direct influence over the growth as well as success of the tourism industry as a result of which
the sector is not growing which in turn also affecting the economical condition of the country.
The strategic areas in which the tourism sector can be integrated into the local economy and
communities and propose the strategies for integration
As per the view point Jacques Morisset, 2015, the tourism sector is continuously growing
with the advancement of technology and increasing attention of government as well as
community as this sector constitute a most essential part of the economy. As a result of which
tourism industry is growing at a rapid pace throughout the world while enhancing the
employment as well as social development opportunity as the tour operators are mainly working
toward integrating the community with the tourism practices for providing a better tourism
experience. The tourism within the Tanzania is growing as compare to last decade by attracting
the tourists to visit the nation. But the facilities as well as tourism related policies are not
appropriate as a result of which it is affecting the performance of the tourism sector. Therefore it
is required to enhance the integration level of tourism sector as well as community by reducing
the gap between them. It has been reported that the Tanzania is poised to reach at the middle
income status as the tourism practices are being leveraged in order to promote the faster
economic growth in term of producing the jobs, getting more fiscal revenues and gaining the
foreign exchange earning. It has been suggested by the Jacques Morisset, 2015, that to expand
the tourism for increasing the economic growth in order to enhance the gross domestic
production rate and the household budget survey that challenges the traditional view point of
Tanzanian economy. As the tourism sector is growing and also contribute toward employing
people but despite of this many of the Tanzanian people are not willing to reap this benefit as