Role of Tourism in Tanzania’s Economic Development

Abstract

This study has focused on the role of tourism in the economic development. Although much literature exists to show the role of tourism as a sector for the economic development in Tanzania, little is known about how tourism affects the economy of the country. The objective of the study is to explore the role of tourism in the creation of employment in Tanzania’s citizens and in income generation in terms of the GDP. The study used secondary data, thus through journals, documents, researches and reports from different institutions. This paper employed a panel data analysis to demonstrate the potential contribution of tourism for economic growth in Tanzania using Pearson correlation under inferential analysis. The study shows the relationship between the tourism sector and two variables thus the employment and income; in the analysis the two important ways to maximize the beneficial impact of tourism on the economy of Tanzania were therefore used: the role of tourist arrival on job creation and the role of tourist arrivals in income generation. The findings indicate that tourism has substantial impact on the economy as shown by increase in GDP, employment opportunities and income generation. Therefore the study recommends that in the in the tourism sector there is a need to be a collaboration with other sectors this is to give an opportunity to other local people who base in agriculture activities so as to improve the livelihood of the citizens and also more economic development in the country.