Question

prepare General and specific objectives on topic "Contribution of tourism expenditure on financial growth of Tanzania"

Answer 1

Answer :

General and specific objectives on topic "Contribution of tourism expenditure on financial growth of Tanzania" :-

1)Impact on Income and Consumption

2)Simulation Design

3)Concerns and risks associated with tourism

4)Weak linkages means greater financial leakages

5)Sociocultural concerns

6)Environmental damage and damage to cultural heritage

7)Towards sustainable tourism

8)A policy agenda towards sustainable tourism

Financial growth of Tanzania :-

Tanzania’s economy is characterized by a large traditional rural sector and a small modern urban sector. Agriculture is the primary economic activity, accounting for about 50 percent of GDP and about 80 per cent of export earnings. As such, it is typical of SSA countries dependent on primary commodity exports.The manufacturing sector is still small, once dominated by textile industries, now by consumables and beverages. Infra-structure, particularly the transport sector, is underdeveloped. The Tanzanian tourism industry is based mainly on wildlife attractions. Tourism activities are largely concentrated in the Northern Wildlife Area (NWA), the city of Dar es Salaam and the historic isle ofZanzibar. International tourism expanded rapidly in the early 1970s, particularly due to the significant expansion of the (state owned) hotel programme.This growth was brought to a halt in 1977 when the border with Kenya was closed (Curry, 1986, p. 55), and only recovered from the late 1980s. The sector has expanded in the 1990s, partly as a response to government initiatives to promote the sector. Government control of the industry was high until the early 1990s, when major institutional changes were implemented that allowed for significant participation by the private sector. Current policy is to promote low-density, high quality and high-priced tourism.

Most tourists to Tanzania come from Europe and North America (Wade et al., 2001, provide an historic and market analysis). Information on recent trends for tourism in Tanzania is provided in Tables 1 and 2. Nominal earnings from foreign tourism increased from US$95 m in 1991 to over US$500 m in 1998, compared with tourist arrivals of about 190 000 and 480 000 respectively. Although earnings from international tourism have grown more rapidly than arrivals in nominal terms (due to policy measures to attract high spending tourists), real earnings have grown less significantly reflecting a general increase in price levels. Expenditure per tourist is high in Tanzania, increasing from US$425 in 1990 to over US$1000 in 1998, compared with the averages of US$338 to about US$400 respectively for Africa (World Tourism Organisation, various years). Furthermore, employment in the tourism sector, although small, has grown rapidly in the 1990s. Tourism earnings as a share of GDP increased significantly, from about one per cent in the 1986–92 period to over six per cent in the 1993–98 period. Comparable data for the East Africa region and African countries on average show that tourism earnings as a share of GDP increased marginally from 1.5 per cent to about two per cent over the same period (World Tourism Organization, various years). As a share of total exports, tourism earnings increased from about 15 per cent in the 1980s to over 40 per cent in the 1990s, becoming the second largest foreign exchange earner after agriculture. The numbers of hotels and beds available has increased more slowly than the growth of arrivals and revenue, suggesting a rise in capacity utilisation of accommodation (although room occupancy rates only increased slightly from 55 per cent in 1990 to about 60 per cent in 1998). From this brief sketch, it is evident that tourism is an increasingly important sector in Tanzania.

Growth of international tourism in Tanzania (1970–98)

Years	Arrival	Nominal Earning (US $)	Arrival	Earning
1970-79	131117	14.7	70	16
1980-85	74522	14.8	40	16
1986-90	131089	43.3	70	46
1991	186800	94.7	100	100
1992	201744	120	108	127
1993	230166	146.8	123	155
1994	261595	192.1	140	203
1995	295312	259.4	158	274
1996	326188	322.4	175	340
1997	359096	392.4	192	414
1998	482331	570	258	602

INPUT–OUTPUT MULTIPLIERS AND LINKAGE MEASURES:-

Input–Output analysis is especially well suited to assessing how changes in one or more sectors of the economy will impact on the total economy. The basic idea is quite simple. The structure of an economy can be represented by the value of transactions between sectors (primary, manufacturing and services) in an IO matrix. The rows of this matrix are the sectors that a given sector sells its output to (as intermediate inputs to those sectors), and down the columns are the sectors a given sector purchases its intermediate inputs from. This IO matrix is completed by adding final demand (including from consumers and exports), the destination of sales that do not go to other sectors, and primary inputs (labour, land, capital and imports), the inputs that are not purchased from other sectors. Full treatments of IO theory and applications can be found in many texts (e.g. Bulmer-Thomas, 1982; Miller and Blair, 1985; Sadoulet and de Janvry, 1995), and we only outline briefly the basic structure of the model used.

CONCLUSION AND IMPLICATIONS:-

The paper aimed at critically studying the history of tourism in sub-Sahara Africa and investigating the nature of tourism development in the region, factors shaping its development, and its practices in relation to the three pillars of sustainable tourism with a special focus on Tanzania Mainland. With the use of documentary review, in-depth interviews and anecdotal evidences, the paper traced the evolution and development of tourism in Tanzania, the challenges it faced and events and circumstances that made it to grow with some periods of decline.

Tanzania is the cradle of humankind and, therefore, the base for the essence of early human movements. This means that travel was the core component of tourism started in ancient periods. Before colonialism, Tanzanians were moving and exploring their environment for various purposes during their leisure time or for subsistence. The earliest urban centers like Rhapta which developed before colonialism form localities where early international travels for commercial purposes evolved in the country. For such reasons, in contrast to Salazer (2009), Wade et al (2001) and Ouma (1970), the paper argues that, during the pre-colonial period, sub-Sahara Africa was not a dark and unsafe region because some features of tourism and travels for different purposes were practiced. The paper also agrees with Okpoko & Okpoko (2002) and Lwoga (2011) that with the coming of the colonialists, the early travels in sub-Sahara Africa evolved into modern tourism. In addition, similar factors that influenced tourism in Europe and North America as noted by Page (2009), Cook et al (2006), Cooper (2005), Goeldner et al (2000), Theobald (1998), Holloway (1998), Cruz (1997) and Lickorish & Jenkins (1997) influenced tourism development and growth in Tanzania.

Today’s tourism managers, planners and policy makers should also learn that the achievement of sustainable tourism will depend much on their fulfillment of the following issues that have, throughout the history, appeared to be crucial determinants for tourism development and its benefits to the local economy: satisfying such traditional factors for tourism development as developing infrastructure and tourist facilities; maintaining peace, security and safety in the country; improving the quality of services like tour guiding and hospitality through training; improving transport networks and travel terminals; investing strongly in the promotion of tourist attractions, and strengthening the country’s economy and manpower bases by improving local production (industries), tourism revenue collections, tourism education systems and local entrepreneurship. This will ensure that the country and its people benefit from tourism development and investments in the arena of globalization and developing-developed country relations.