an Eldis Resource
The role of tourism in poverty alleviation in Tanzania
Quantifying the costs and benefits of tourism
Authors:
N. Luvanga; J. Shitundu
Publisher:
Research on Poverty Alleviation, Tanzania, 2003
Since the 1990s, tourism has become the fastest growing industry in Tanzania. By 1999 tourism accounted for 60 percent of all exports of goods and services and 9 percent of Gross Domestic Product (GDP). Tourism is also considered an important industry for reducing poverty. However, its benefits can be overstated; the industry is driven by foreign companies and the private sector, with little or no interest in ensuring that poverty is alleviated among the locals. Moreover, tourism can also have negative impacts. This study attempts to quantify the benefits and costs of tourism on the economy in general, and on the poor in particular.
The paper begins with a review of the literature that discusses the link between tourism and poverty alleviation and outlines the evolution of the sector in Tanzania. Next, the authors analyse the positive and negative aspects of tourism using survey data collected in three regions.
The authors find that tourism has the following effects:
- generation of employment for the local people - however, most of the jobs are low wage and managerial positions are occupied by foreigners
- indirect employment opportunities created by the linkages of tourism to other sectors, in particular farming and livestock
- improved accessibility to basic needs such as food and water for the local people, and improved infrastructure and social services
- exclusion of local people from access to resources, because land is allocated to investors
- increased utilisation of natural resources and depletion of marine products
The authors conclude that tourism has played an important role in reducing poverty in Tanzania, particularly through its impacts on other sectors of the economy. However, tourism is diminishing natural resources, and people that are dependant on these for their livelihoods may be negatively affected. Finally, the authors highlight some policy implications:
- tourism and its related activities should be promoted
- due to the fragility of the sector, people in the industry should diversify their sources of livelihood
- local people should be trained so that they can benefit from higher paid jobs
- policies are needed to protect the environment and ensure that resources are used in a sustainable manner
Summary originally provided by GDNet, an Eldis content partner
