Study On The Impacts Of Tourism On Economic Growth In Tanzania

Today,Tourism industry is one of the largest and dynamically developing service sectors in the world.The economic significance of tourism differs between countries.However,increase in tourism tends to lead to gross domestic product growth.Tourism industry is important for the benefits it brings and due to its role as a commercial activity that creates demand and growth for many more industries.This service sector provides more stable foreign earnings for the country than any other industry,creates thousands of job opportunities,infrastructure development,strengthen political and social ties,stimulation of trade,income and entrepreneurship.The study concludes that the economic benefits of tourism outweigh the negatives features there may be like inflation and higher land values,over-dependence on tourism and other environmental and socio-cultural impacts.The study highlighted the current factors influencing demand for tourism growth and the challenges facing the travel and tourism sector in the country.The study used dependent variable GDP as a measure of economic performance in Tanzania,while international tourist arrival and tourist expenditure as well as inflation rate were used as independent variable.The objective is to investigate the causal relationship among the variables using yearly data.The study applied the regression analysis,employed the Engel-Granger causality test for Cointegration and tested stationary using Augmented Dicker-Fuller(1979,1981)to obtain the study objectives with secondary data from 1995-2018,all analysis is done using E-views.This piece of work employed the latest data sourced from qualified organizations,journals and associated electronic websites.The results show that that the variables were cointegrated implying they have significant impact on economic growth.The results indicated that there exist long-run relationships among the variables being considered.International tourist arrivals and tourist expenditure had positive significant on economic growth of Tanzania.Hence,tourism explains about 98 percent of the total variation in economic performance.Finally,the study recommends that tourism should be encouraged in all media to publish the tourism centers in Tanzania to the outside world to attract more international tourist arrivals in the country.improving exchange rate are also some of the areas that the government could help grow the tourism industry.