Determinants of inbound tourism in Tanzania

This study is set out to investigate determinants of inbound tourism in Tanzania in a theoretical framework of the tourism demand model. The E-views was employed for econometric analysis. The focus was to see how different variables such as GDP of tourist sending countries, the budget allocated to promote tourism across Tanzania territorial borders and the level of prices in a tourist sending country compared to price level in Tanzania impact on the tourist arrivals to Tanzania. To test for stationarity of data, unit not test was conducted while the long run relationship of variables was established by carrying out cointegration tests. Preferred model was generated from the over parameterized model, based on statistical considerations. The empirical results revealed that the main determinants of inbound tourist in Tanzania include GDP for leading tourist sending countries. Domestic Price Levels (PL). Real Exchange Rate. REER) and the Dummy variable which represented economic reforms. The findings confirm to the theoretical postulates and findings of previous studies that tourist movements are by and to a large extent driven by the economic levels. To maintain and even increase the number of tourist arrivals in the country, responsible, Ministry should sustain the quality of tourism services and activities as well as increasing tourism marketing budget. Through reforms, the responsible institutions should emphasize on increased marketing campaign to countries with sound economic capabilities