INTRODUCTION
Tourism is one of the pillars of Tanzania’s economy, shaping livelihoods, conservation efforts, and international perceptions of the country. As the world continues to recover from global economic fluctuations and travel disruptions experienced in the early 2020s, Tanzania is emerging as one of Africa’s most stable, attractive, and fast-growing destinations
The tourism sector is among the fastest-growing sectors in the global economy. The World Travel and Tourism Council 2020 report shows that globally, in 2019 tourism sector contributed 10.3% (US$ 8.9 trillion) of global Gross Domestic Product (GDP) and 330 million jobs, which is about 10% of all global employment (WTTC, 2020). The report further affirms that the growth rate of the global tourism sector in 2019 outpaced the overall global economic growth rate: the sector grew at 3.5% as compared to the global economic growth rate of 2.5%. Besides, the sector's role in the overall improvement of human development through income and job creation, tourism is making a significant contribution in many countries towards the balance of payment, poverty alleviation, foreign exchange generation, creation of a market for indigenous commodities, promotion of the hospitality industry, and stimulation of transport sector development (Gisore and Ogutu, 2015; Sarpong et al., 2020).
The tourism sector's contribution to the economies of developing nations is incredibly significant. For instance, in Tanzania, the tourism sector is second after the manufacturing sector in contributing to the national income.
In particular, the travel and tourism sector's contribution to GDP in 2019 was US$ 6,577.3 million, equivalent to 10.7% of the country's GDP (WTTC, 2020). The sector created 1,550,100 jobs in 2019, which is equivalent to 11.1% of the country's total employment.
The tourism sector in Tanzania is also instrumental in the fight against abject poverty through job creation and the development of a market for traditional products (Luvanga and Shitundu, 2003; Odhiambo, 2011; Wamboye et al., 2020).
The development of the tourism sector in Tanzania, and the developing countries at large, is also a stimulant for the development of transport and hospitality industries (Gisore and Ogutu, 2015; Sokhanvar et al., 2018).
The consistent increase of international tourism receipts, as a special form of export, contributes to increasing forex and a better balance of payment (Gisore and Ogutu, 2015; Luvanga and Shitundu, 2003).
In total, Tanzania has 44 game-controlled areas; 16 national and 2 marine parks, 28 game reserves, several forest reserves, and 1 conservation area hosting the world's renowned biodiversity, wildlife, and unique ecosystems (Wamboye et al., 2020)
In terms of international tourism receipts, Tanzania exhibits a unique trend as compared to other emerging economies in Africa. For instance, over the period 2010–2019, the average international tourism receipt (% of total exports) for Tanzania was 23.95%, Uganda 21.17%, Kenya 16.22%, South Africa 9.24%, Ghana 5.85% and Mozambique 4.68% (World Bank, 2021).
These figures suggest that Tanzania has a comparative advantaged of building up her economy by investing on tourism sector. Besides, Tanzania is endowed with massive storehouse of nature-tourism, which in turn has made the tourism industry in the recent years a robust source of growth.
A World Bank source discloses that Tanzania has attained a high-value low-density (HVLD) tourist destination because the sector has a strategy of targeting high ended segment of the market which is normally unaffected by seasonal economic fluctuations (World Bank, 2015). As a result, in contrast with other emerging economies such as Kenya which attracts more tourists, HLVD enables Tanzania to make more revenue for it attract visitors from more price inelastic market segment.
The growth in tourism sector is expected to continue and thus lead to increased government revenue (through taxation and foreign exchange) and improved household revenue (through increased employment income: salaries, wages, interest, etc.). The WTTC 2020 report attests that globally, the travel and tourism sector will significantly drive the global economic recovery after COVID-19 through job creation and its economic effect on suppliers across the whole supply chain. Tugcu (2014) affirms that growth in the tourism sector can at least be used in three major ways: first, increase regional and seasonal employment and, as a special type of export, tourism growth generates foreign currency. Second, tourism development promotes the growth of transport sector, hospitality industry, and construction in the host country.
Third, tourism growth can be used by policymakers to contract income inequalities in the host country. Further, Sokhanvar et al. (2018) attest that tourism development has the potential to increase the price of non-traded local goods and services, thereby increasing the employment of people and use of resources, which culminate in improved people's wellbeing.
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