Browsing by Author "Nyaronga, Peter John"

Now showing 1 - 1 of 1
  • Thumbnail Image
    Item
    Determinants of international tourism demand for Tanzania
    (University of Dar es Salaam, 2019) Nyaronga, Peter John
    This study aims to establish how Tanzania could increase the number of international tourists’ arrivals, and in turn, enhance the sector’s effectiveness in contributing to the country’s second 5-year development plan. This objective is achieved; first, by empirically investigating the relevant determinants of international tourism demand for Tanzania. Broadly, these factors are categorized as economic (income of tourists, infrastructure development, transportation cost, cost of living in the host country, and relative exchange rate) and political stability (polity2 index, which measures the extent to which a country is a democracy vis-à-vis autocracy. This index is a broad measure of the health of political institutions in the country) factors. Second, the study uses the findings to inform evidence-driven policies. The empirical analysis uses both descriptive and regression methodology. For the regression analysis, panel data for Tanzania’s top fifteen tourists’ source countries, during the 2000-2016 period is used. Generally, results from the econometric analysis indicate that income of tourists and infrastructure development are the two main determinants of international tourism demand for Tanzania. These findings hold across model and sample specifications. Other factors such as transportation cost, cost of living in the host country, and relative exchange rate bear the right sign where significant. Taking into consideration these findings; 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 products 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.