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What are the determinant of international tourism in Tanzania?

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  • Wamboye, Evelyn F.
  • Nyaronga, Peter John
  • Sergi, Bruno S.

Abstract

International tourism has since been recognized as a conduit for poverty alleviation and infrastructure development. Despite the sector’s importance in Africa in terms of its contribution to economic growth, foreign exchange earnings, and employment, very few studies have attempted to uncover its potential. In the case of Tanzania, where the sector’s importance rank high in the country’s development strategy, only two studies exist, and none on the factors that influence international tourism demand. Therefore, this study makes an important contribution to tourism economics literature in Africa by investigating the relevant determinants of international tourism demand using panel data for Tanzania’s top fifteen tourists’ source countries during the 2000–2016 period. Results, based on various panel data estimation techniques, indicate that income of tourists and infrastructure development in Tanzania, are the two main determinants of international tourism demand for Tanzania. These findings hold across model and sample specifications. From a policy perspective, the government of Tanzania and stakeholders should work towards making Tanzania tourism products more competitive by developing/improving infrastructure in the country. Moreover, there should be a policy that encourages developing tourism packages that fit the demands of tourists from relatively high income countries, and also make conscious efforts to market these products in the target countries. Lowering the cost of living and improving the exchange rate are also some of the areas that the government could work on to help grow the tourism industry.

Suggested Citation

  • Wamboye, Evelyn F. & Nyaronga, Peter John & Sergi, Bruno S., 2020. "What are the determinant of international tourism in Tanzania?," World Development Perspectives, Elsevier, vol. 17(C).
  • Handle: RePEc:eee:wodepe:v:17:y:2020:i:c:s2452292919300426
    DOI: 10.1016/j.wdp.2020.100175
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    3. Hassan F Gholipour & Robin Nunkoo & Behzad Foroughi & Hassan Kalantari Daronkola, 2022. "Economic policy uncertainty, consumer confidence in major economies and outbound tourism to African countries," Tourism Economics, , vol. 28(4), pages 979-994, June.
    4. Rukia Mahamud Mkakile & Venance Shillingi Salum, 2022. "The Influence Of Generic Strategies On Performance Of Tanzania’S Tourism Firms In Northern Circuit," Oradea Journal of Business and Economics, University of Oradea, Faculty of Economics, vol. 7(1), pages 62-73, March.
    5. Nuno Carlos Leitão & Daniel Balsalobre Lorente, 2020. "The Linkage between Economic Growth, Renewable Energy, Tourism, CO 2 Emissions, and International Trade: The Evidence for the European Union," Energies, MDPI, vol. 13(18), pages 1-16, September.
    6. Canh P Nguyen, 2023. "Last chance to travel or safety first? The influence of exposure to natural hazards and coping capacities on tourism consumption," Tourism Economics, , vol. 29(4), pages 952-985, June.
    7. Dabo Guan & Daoping Wang & Stephane Hallegatte & Steven J. Davis & Jingwen Huo & Shuping Li & Yangchun Bai & Tianyang Lei & Qianyu Xue & D’Maris Coffman & Danyang Cheng & Peipei Chen & Xi Liang & Bing, 2020. "Global supply-chain effects of COVID-19 control measures," Nature Human Behaviour, Nature, vol. 4(6), pages 577-587, June.

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    More about this item

    Keywords

    Tanzania; Tourism demand; International tourism; Tourism determinants; Tourist arrivals;
    All these keywords.

    JEL classification:

    • Z30 - Other Special Topics - - Tourism Economics - - - General
    • Z38 - Other Special Topics - - Tourism Economics - - - Policy
    • F10 - International Economics - - Trade - - - General

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