Assessment of the impact of foreign direct investment on the Tanzania labor market: a case of hotel industry

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University of Dar es Salaam
The main objective of the study was to assess the impact of Foreign Direct Investment (FDI) on Tanzanian labour market using a case of the hotel industry. The specific objectives were to identify skills required from the labour force to get employment in FDI hotels, to examine the level of job security among Tanzanians labour force in the FDI hotels, and to assess the wage and incentive differentials between Tanzanian labour force and expatriate workers and establish the challenges the FDI hotel employers face in employing qualified local staff. The research study used a descriptive design. It was conducted in Dar es Salaam city, which was selected because it is one of the leading areas in hosting FDI hotels in Tanzania as many FDI hotels are located in Dar es Salaam. The studied population were workers and employers in hotel industry in the Dar es Salaam based hotels. Simple random sampling was used to generate a sample of workers and employers from 10 multinational hotels based in Kinondoni and Ilala districts. Findings show that most of the jobs in hotel industry do not require high level of education. However, some key areas require graduates and there was an urgent need for the government to support the training of Tanzanians in hotel management who can raise the profile of Tanzanians in key positions of FDI hotels. The skills mostly provided in FDI hotels are technical skills, business management skills and marketing skills on the basis of these findings, the study recommends that the government should train more Tanzanian labor force to develop skills required in hotel industry; this can help to address the problem of youth unemployment.
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Investments, Foreign, Labor market, Hotel industry, Tanzania
Kyetema, P.S.P.(2013). Assessment of the impact of foreign direct investment on the Tanzania labor market: a case of hotel industry. Master dissertation, university of Dar es Salaam. Available at (