Investigation of factors affecting the performance of small and medium sized tourism enterprises: a case of travel agents and tour operators in Tanzania.

The main objective of this study was to investigate factors that affect the performance of Small and Medium Sized Tourism Enterprises in Tanzania. The major findings show that the factors that have significant influence on the performance of Small and Medium Tourism Enterprises in Tanzania are; high prices of tourism and hospitality services particularly prices of transport and accommodation services, lack of skilled human resources, unfavourable government policy, poor transport connections, lack of aggressive promotion campaign and lack of alternative commercial services. The results of this study have the following policy implications to the government, public and tourists institutions. The main cost of tourism to visitors include cost of transport service and accommodation, thus it is important to make prices of transport and accommodation services to be competitive, if Tanzania is to prosper as tourist destination. There is a need for management to use the right channels and coordinated promotion tools, which were investigated to be advertising on web site, trade magazine, sales promotion and personal selling. Furthermore, development of qualified management by ensuring that education in public schools and training institutions meet the requirements of tourism industry will enhance the performance of tourism sector in Tanzania. Government should redesign its licensing and tax policy to favour the growth of small tourism enterprises. It should also plan development and maintenance of infrastructure that ensures connections to all-important tourists attraction spots.