Browsing by Author "Mhina, Rest Ombeni"

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    Foreign Tourists’ Arrivals in Tanzania and Their Contribution to the Economy From 1985-2014
    (University of Dar es Salaam, 2016) Mhina, Rest Ombeni
    This study analyses the foreign tourists’ arrivals in Tanzania and its contribution to the economy. The study uses a Dritsakis model to examine the underlying determinants of foreign tourists’ arrivals in Tanzania from 1985 to 2014 period using yearly time series data. It employs econometric analysis in which the error correction model (ECM) was applied to analyze foreign tourists’ arrivals function. The empirical result indicated that Growth Domestic Product (GDP growth rate) in both long run and short run estimation shows a positive relation to foreign tourists’ arrivals in Tanzania, where the real inflation rate was a significant in influencing foreign tourists’ arrivals on the short run estimation at lag one. There is significant evidence that , foreign direct investment in the tourism sector in Tanzania has a positive impact on the foreign tourist arrivals in the short run at lag year. Employment in the tourism sector and foreign tourism spending variables, both are shown positive signs current period and in short run estimations. Both consumer price index and exchange rate variable are significant, showing negative signs at current period and in short run estimations. This study suggests that, policy makers have to rely much on policies that will increase arrivals of foreign tourists. The government should consider stabilizing inflation by encouraging tourism spending on locally produced goods and services offered in the tourism industry. Furthermore, through efforts to attract both domestic and foreign investors, proper market information and hospitality could lead to sustainable foreign tourists’ arrivals practices in Tanzania.