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An Exploration of Luxury Hotels in Tanzania


  • Diego A. Comin


Tourism is a tradable service activity that could allow some African countries to generate significant growth. Tanzania, given its unique natural assets, is an ideal candidate. However, despite being so richly endowed in touristic resources, Tanzania receives very few tourists and revenues from tourism. To explore the determinants of this performance, I conduct an international survey for upscale hotel managers to measure supply-side constraints on the operation of hotels. The survey reveals that hotels in the safari area in Tanzania are more expensive than comparable hotels, and that this difference in price cannot be accounted for by differences in supply constraints. Further, using cross-country panel data, I show that upscale hotel prices account for a significant fraction of cross-country differences in tourists.

Suggested Citation

  • Diego A. Comin, 2012. "An Exploration of Luxury Hotels in Tanzania," NBER Working Papers 17902, National Bureau of Economic Research, Inc.
  • Handle: RePEc:nbr:nberwo:17902
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    References listed on IDEAS

    1. Leigh, Andrew & Jencks, Christopher, 2007. "Inequality and mortality: Long-run evidence from a panel of countries," Journal of Health Economics, Elsevier, vol. 26(1), pages 1-24, January.
    2. James P. Smith, 2007. "The Impact of Socioeconomic Status on Health over the Life-Course," Journal of Human Resources, University of Wisconsin Press, vol. 42(4).
    3. Deaton, Angus & Lubotsky, Darren, 2003. "Mortality, inequality and race in American cities and states," Social Science & Medicine, Elsevier, vol. 56(6), pages 1139-1153, March.
    4. James Banks & Alastair Muriel & James Smith, 2010. "Disease prevalence, disease incidence, and mortality in the United States and in England," Demography, Springer;Population Association of America (PAA), vol. 47(1), pages 211-231, March.
    5. James Smith, 2004. "Unravelling the SES health connection," IFS Working Papers W04/02, Institute for Fiscal Studies.
    6. Martens, W. J. M., 1998. "Climate change, thermal stress and mortality changes," Social Science & Medicine, Elsevier, vol. 46(3), pages 331-344, February.
    7. repec:aph:ajpbhl:2004:94:6:1043-1048_1 is not listed on IDEAS
    8. Blakely, Tony & Wilson, Nick, 2006. "Shifting dollars, saving lives: What might happen to mortality rates, and socio-economic inequalities in mortality rates, if income was redistributed?," Social Science & Medicine, Elsevier, vol. 62(8), pages 2024-2034, April.
    9. repec:aph:ajpbhl:2001:91:3:385-391_5 is not listed on IDEAS
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    JEL classification:

    • L1 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance
    • L89 - Industrial Organization - - Industry Studies: Services - - - Other

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