Socioeconomic Impact of Tourism: The Case of Tanzania

Abstract

The paper shows that while tourism has grown over the past few decades and has made a significant contribution to Tanzania’s exports, Tanzania’s economy and Tanzania’s labour market, Tanzania’s tourism sector could have been more successful. This claim is supported by the fact that Tanzania has a greater number of natural wonders than its competitors, greater potential market and it features more prominently than other destinations in the packages offered by tour operators around the world. The paper further argues that while the tourism sector could be more successful and attract more tourists, there is a trade-off between the economic dividends and the environmental problems that a thriving tourism sector could generate. The key policy implication of the present paper is that Tanzania’s tourism sector should be developed in a sustainable way. By failing to do so and by damaging the environment, the tourism sector could undermine its own sustainability.