Travel and Tourism Competitiveness Indices as a proxy for Policy and Business Environment: Comparison of Tanzania, South Africa, and Switzerland

Abstract

Tourism is a growing industry in developing countries like Tanzania. Being among the major sources of export earnings and employing a significant percentage of locals as well as having multi-stakeholders, both from the private and public arena, the presence of efficient and effective public-private partnership (PPP) is crucial. Using the Travel and Tourism Competitiveness data of the World Economic Forum, this paper aimed at answering two major questions: is the government prioritizing travel and tourism industry? Does the government create a conducive environment for travel and tourism business to flourish compared to selected governments? The analysis of the data provides a proxy on the PPP in the Tanzanian tourism industry. Specifically, overall competitiveness, prioritization of travel and tourism, price competitiveness, business environment, tourist arrivals, and tourism receipts were used to calculate relevant ratios. Generally, the results indicate both prioritization of travel and tourism and the business environment not to have substantially improved over the years. The ratios of prioritization over the business environment and business environment over price competitiveness over the years approached 1 indicating the government trying to balance the two variables. Compared to selected countries (South Africa and Switzerland), the results indicate Tanzania is yet to have balanced policies and creation of favorable business environment for tourism. The results provide insights to the government on elements that need to be streamlined to make the country more competitive.