Last modified: 2019-01-26
Abstract
This study empirically investigates the relevant determinants of international tourism demand using panel data for Tanzania’s top fifteen tourists source countries during the 2000-2016 period. Results indicate that income of tourists and infrastructure development are the two main determinants of international tourism demand for Tanzania. These findings hold across model and sample specifications. From a policy perspective, the government of Tanzania and stakeholders should work towards making Tanzania tourism products more competitive by developing/improving infrastructure in the country. Moreover, there should be a policy that encourages developing tourism packages that fit the demands of tourists from relatively high income countries, and also make conscious efforts to market these products in the target countries. Lowering the cost of living and improving the exchange rate are also some of the areas that the government could work on to help grow the tourism industry
JEL Codes: Z30, Z38, F10, 012
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Key words: Tanzania, Tourism demand, International tourism, Tourism determinants, Tourist arrivals