Tourism growth and SMEe development in Tanzania: case study of tourist hotels

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University of Dar es Salaam
The study examined the relationship between growth tourism sector and its impact on development of small and Medium Enterprises (SMEs) in Tanzania. The basis for investigation was the lack of significant correlation between increased GDP percentage contributed by tourism industry and the development of local tourism related SMEs. This situation raised an agenda for investigation aiming at answering the question whether growth in tourism sector concurrently induce development of local SMEs or not. The study covered a sample of 70 randomly selected hotels from six tourist regions of Tanzania, namely Zanzibar Dar-es Salaam, Arusha, and Manyara, Kilimanjaro and Coastal region. It collected primary data through structured questionnaire, interviews and direct observations: however, in adding quality of the work the use of secondary data was also involved. The analysis of data involved SPSS and Excel application software. The investigation identified inexistence of a direct relationship between sector growth and local SMEs development based on the fact that, higher percentage of all the supplies made to tourist market are imported or produced by foreign SMEs residing locally. Conversely, the report identified several weaknesses on the part of SMEs and the country in general. Among the weakness include: poor infrastructural development, leakage of tourism dollar through tour packages, low manufacturing, and low technological developments less agro-processing, less enterprise development, presence of information gap and lack of proper SMEs financing schemes. The study finally recommended that, growth of GDP as a result of the contribution of tourism business has no significant effect on the development of local SMEs. Therefore, the need to develop mechanism to remove the above weaknesses cannot be flouted.
Available in printed form, East Africana Collection, Dr. Wilbert Chagula Library, Class mark (THS EAF G155.T34A44)
Tourism, Tourist trade, Tourist Hotels, Small business
Ally, S. B. (2013) Tourism growth and SMEe development in Tanzania: case study of tourist hotels. Master dissertation, University of Dar es Salaam. Dar es Salaam.