The benefits of tourism in economic growth of Kilimanjaro region in Tanzania:

Abstract

This study examined the benefits of tourism sector in economic growth of Kilimanjaro region in Tanzania with the case of Kilimanjaro National Park (KINAPA), the specific objectives was to find out the influence of KINAPA number of tourist arrival on per capita income in Kilimanjaro, to examine effect of KINAPA corporate social responsibility fund on social impact in Kilimanjaro and last was to determine relationship between KINAPA revenue collection and economic growth in Kilimanjaro. The theories guided this study were classical growth theory as a modern category of economic theory that is applied to the work of several economists who wrote about the process and sources of economic growth and Theory of Economic development introduced by Joseph Schumpeter in the 1930’s with the role on entrepreneurship and innovations introduced in the process of economic development. The research design of this study was explanatory research design using quantitative research approach. Sampling techniques was random sampling with sample size of 10 respondents. Data collection method were documentary review and questionnaires. Data analysis method was regression and granger causality with help of STATA software and Excel. Finding of the study revealed that R square = 87.9 % is a suitable fitted level to explain the model. This is interpreted as per capita income of people of Kilimanjaro influenced by 87.9 % through number of tourist arrival at KINAPA and revenue collected at KINAPA while other unidentified factors can explain per capita income of people of Kilimanjaro by for only 12.1 %.The value of Durbin-Watson d-statistic (4, 21) = 1.071596 indicates there is no autocorrelation and there is a positive relationship among the variables included in the model, lastly granger causality result revealed that at lagged (4) per capita income granger cause CSR-Fund and vice versa, therefore tourism sector contribute economic growth in Kilimanjaro region, hence it is recommended that KINAPA management should provide soft loan to people around mountain to conduct business through corporate social responsibility fund, also it is advised KINAPA to apply force account construction mechanism to realize value for money in construction. Key term: Benefits, Economic Growth and Tourism.