The factors affecting the growth of small and medium enterprises in the tourism sector in Tanzania

The main objective of this study was to identify major constraints facing tour operators in Tanzania and examine the efforts made so far to tackle the problem. Factors examined in this study include, lack of finance, inadequacy of qualified staff, improper marketing strategies, high government taxation, terrorism, poor infrastructure and poor leisure facilities. The study revealed though some efforts have already been committed to solving these problems, the rate of growth of the tourism sector and SMEs participating in the sector in still very low compared with other countries. The efforts already made are yet to fully satisfy the requirements. Of all the mentioned factors, it is claimed that lack of finance among the SMEs and poor infrastructure significantly hamper tourism development in the country and limit the growth of the SMEs in the tourism development in the country and limit the growth of the SMEs in the tourism sector together with its contribution to economic development. It was further concluded that, that instabilities in the neighborhood and marketing related factors (quality of tourism products, market segmentation, promotional activities, and hospitality strategies) by SMEs are significantly important in the inflow of tourists in the country. It is recommended that, there should be a development of an effective marking strategy for the private firms which be based on a consistent framework of policies, objectives, and action programs that will enable the tourism organization to arrive at the best possible results is of paramount importance.