Question

Write a research proposal on " contribution of tourism expenditure on financial growth of Tanzania"

Answer 1

Tanzania, East African country situated just south of the Equator. Tanzania was formed as a sovereign state in 1964 through the union of the theretofore separate states of Tanganyika and Zanzibar.

Tanzania has been recognized as the private sector’s role in tourism development from scratch a few years back to a multi-billion-dollar industry.Tourism is Tanzania’s largest foreign exchange earner, contributing an average of $2.5 billion annually, which is equivalent to 25 per cent of all exchange earnings, the government data indicates.Tourism also contributes to more than 17.5 per cent of the national gross domestic product (GDP), creating more than 1.5 million jobs..

In this context, public-private partnerships play an important role in tourism development.

Since the 1990s, tourism has become the fastest growing industry in Tanzania. By 1999 tourism accounted for 60% of all exports of goods and services and 9 %of Gross Domestic Product (GDP). Tourism is also considered an important industry for reducing poverty. However, its benefits are overstated; the industry is driven by foreign companies and the private sector, with little or no interest in ensuring that poverty is alleviated among the locals. Moreover, tourism can also have negative impacts. This study attempts to quantify the benefits and costs of tourism on the economy in general, and on the poor in particular.

The study finds that tourism has the following effects:

• generation of employment for the local people - however, most of the jobs are low wage and managerial positions are occupied by foreigners
• indirect employment opportunities created by the linkages of tourism to other sectors, in particular farming and livestock
• improved accessibility to basic needs such as food and water for the local people, and improved infrastructure and social services
• exclusion of local people from access to resources, because land is allocated to investors
• increased utilisation of natural resources and depletion of marine products

Conclusion that tourism has played an important role in reducing poverty in Tanzania, particularly through its impacts on other sectors of the economy. However, tourism is diminishing natural resources, and people that are dependant on these for their livelihoods may be negatively affected. Finally, the key highlight some policy implications:

• tourism and its related activities should be promoted
• due to the fragility of the sector, people in the industry should diversify their sources of livelihood
• local people should be trained so that they can benefit from higher paid jobs
• policies are needed to protect the environment and ensure that resources are used in a sustainable manner

Visitor exports are compared with exports of all goods and services Domestic Travel & Tourism spending is compared with GDP Government individual Travel & Tourism spending is compared with total government spending Internal Travel & Tourism consumption is compared with total internal consumption (i.e. total domestic spending plus total export) Leisure Travel & Tourism contribution to GDP is compared with total GDP Business Travel & Tourism contribution to GDP is compared with total GDP Travel & Tourism capital investment spending is compared with all fixed investment spending

What is United Republic of Tanzania contribution of travel and tourism to GDP (% of GDP)?

DATE	VALUE	CHANGE, %
2018	11.7	1.02 %
2017	11.6	0.39 %
2016	11.6	1.61 %
2015	11.4	0.30 %
2014	11.4	-0.29 %
2013	11.4	4.11 %
2012	10.9	3.42 %
2011	10.6	8.96 %
2010	9.7	-9.81 %
2009	10.8	3.38 %
2008	10.4	-17.20 %
2007	12.6

Source : https://knoema.com/atlas/United-Republic-of-Tanzania/topics/Tourism/Travel-and-Tourism-Total-Contribution-to-GDP/Contribution-of-travel-and-tourism-to-GDP-percent-of-GDP