CONTRIBUTION OF TOURISM ON HOUSEHOLD’S INCOME IN TANZANIA: THE CASE OF MTO WA MBU IN ARUSHA REGION By Igiha, Emmanuel A Dissertation Submitted in Partial Fulfillment of the Requirements for Award of the Master of Science in Economics in Project Planning and Management (MSc Econ- PPM) of Mzumbe University 2013 i CERTIFICATION We, the undersigned, certify that we have read and hereby recommend for acceptance by the Mzumbe University, a dissertation entitled Contribution of Tourism on Household’s Income in Tanzania: The Case of Mto wa Mbu in Arusha Region, in partial/fulfillment of the requirements for award of the degree of Master of Science in Economics (Project Planning and Management) of Mzumbe University. ___________________________ Major Supervisor ___________________________ Internal Examiner Accepted for the Board of ________________________________ ____________________________________________ DEAN/DIRECTOR, FACULTY/DIRECTORATE/SCHOOL/BOARD i DECLARATION AND COPYRIGHT I, Igiha Emmanuel, do hereby declare that this thesis is my original work and that it has not been presented to any Higher Learning Institutions for a similar award or any other degree award. Signature ___________________________ Date _______________________________ © This dissertation is a copyright material protected under the Berne Convention, the Copyright Act 1999 and other international and national enactments, in that behalf, on intellectual property. It may not be reproduced by any means in full or in part, except for short extracts in fair dealings, for research or private study, critical scholarly review or discourse with an acknowledgement, without the written permission of Mzumbe University, on behalf of the author. ii ACKNOWLEDGEMENTS I first thank the Almighty God for the great love and help. I also thank my parents, Mr. and Mrs. Lusajo Mwaibale and Mr. and Mrs. Dick Mkisi for their encouragement and support, and for raising me up and laying a good foundation for my education. I am equally indebted to my brothers, sisters and friends who have been encouraging me all the time. Also to my employer, the Director General, Tanzania National Parks, for allowing me to pursue further studies at Mzumbe University. I also pass my sincere gratitude to the Lecturers at Mzumbe University who invested their time and efforts to make me understand the required courses. Special thanks go to my supervisor, Dr. Fred Rwechungura, who dedicated his time to supervise my work, giving positive criticisms and encouragement that gave me hope. May God bless all those who contributed a lot to accomplish this study. iii DEDICATION This is dedicated to my beloved parents Mr. and Mrs. Lusajo Mwaibale and Mr. and Mrs. Dick Mkisi. iv ABSTRACT There are arguments on extensive roles of tourism as regards to improvement of the welfare and living condition of surrounding communities vested on the relationships between tourism and the household’s income. In order to provide critical analysis on the matter, the study focuses on assessing the impact of tourism on household’s income to communities living adjacent to protected areas by examining the contribution of tourism income to the total household’s income. In so doing, the study examines the effects of tourism on employment and business opportunities in the community and income of the local people at Mto wa Mbu. The study also assesses the contribution of tourism on social services provisions in the community by investigating the supply and employment opportunities and factors that enhance such opportunities. The main focus is on the access of communities on tourism employment, capacity to sell to tourist hotels and lodges and business innovative patterns. The researcher has used both cross-section and longitudinal research designs using the survey and documentary reviews data technique. The survey technique was carried through the established questionnaires and interview guides which were applied to 95 respondents whore were randomly selected through the stratified sampling technique. The community of Mto wa Mbu depends on tourism on their day to day economic activities such as selling their farm produces and artisanal products as well as on employment in lodges, hotels and camps. The findings show that tourism has a significant contribution on household’s income at Mto wa Mbu through provision of farm supplies and employment opportunities which are provided in the industry. The researcher recommends that, the government and other practitioners should increase their efforts on enhancing the community to increase their productivity capacity especially through education in order to increase community awareness and hence productivity. TABLE OF CONTENTS v CERTIFICATION .......................................................................................................... i DECLARATION ........................................................................................................... ii COPYRIGHT ................................................................................................................ ii ACKNOWLEDGEMENTS .......................................................................................... iii DEDICATION.............................................................................................................. iv ABSTRACT .................................................................................................................. v LIST OF TABLES ...................................................................................................... viii LIST OF FIGURES ...................................................................................................... ix LIST OF APPENDICES ................................................................................................ x LIST OF ABBREVIATIONS ....................................................................................... xi CHAPTER ONE ............................................................................................................ 1 1.0 INTRODUCTION ................................................................................................... 1 1.1Background Information ........................................................................................... 1 1.2 Statement of the Problem ......................................................................................... 2 1.3Objectives of the study .............................................................................................. 3 1.3.1 Main objective ...................................................................................................... 3 1.3.2 Specific objectives ................................................................................................ 3 1.4 Research Questions .................................................................................................. 3 1.5 Research Hypotheses ............................................................................................... 4 1.6 Scope and Rationale of the Study ............................................................................. 4 1.7 Organization of the Dissertation ............................................................................... 4 CHAPTER TWO ........................................................................................................... 5 2.0 LITERATURE REVIEW ......................................................................................... 5 2.1 Theoretical part of the Study .................................................................................... 5 2.1.1 Definition of Tourism ............................................................................................ 5 2.1.2 Global Tourism ..................................................................................................... 6 2.1.3 Tourism in Tanzania.............................................................................................. 7 2.1.4 Tourism in protected areas .................................................................................... 8 2.1.5 Tourism in Lake Manyara National Park ............................................................. 10 2.1.6 Tourism and local food and non-food production ................................................ 11 2.1.7: Linkages between Tourism and Agriculture ....................................................... 13 2.1.8 Diversification of household income ................................................................... 15 2.1.9 Tourism and Poverty Alleviation ......................................................................... 15 2.1.10 Theoretical Framework ..................................................................................... 18 2.1.10.1: Theoretical Models and Concepts .................................................................. 18 2.1.9.2: Linkages between Agriculture and Tourism..................................................... 20 2.2: The Conceptual Framework .................................................................................. 23 2.2.1 Definitions and measurements ............................................................................. 24 2.2.1.1 Dependent variable ........................................................................................... 24 2.2.1.2 Independent variables ....................................................................................... 24 CHAPTER THREE ....................................................................................................