Tourism and Development in Tanzania: Leveraging Transformation through the Impact of Sectoral Linkage and FDI Effects
Kweka, Josaphat / 2012

Various studies have documented the significant contribution of tourism to the economy. This paper examines the potential for tourism as a source of financing development through its role in structural transformation in Tanzania. Examining this potential is useful in ascertaining the broader contribution of tourism as a tool of economic development. This entails two related empirical challenges. First, how to consistently and reliably verify that tourism can play this transformative role (and whether it is really happening and to what extent). Secondly, why is the desirable outcome (structural transformation) not happening despite the fact that Tanzania has exceptional tourist attractions? This paper addresses the two questions using information from previous studies and policy dialogue with key stakeholders, and identifies a set of policy measures necessary for tourism to spur growth and job creation in Tanzania.