Tanzania’s Tourism industry is one of the major sources of income and economic development. According to Welford, Ytterhus and Eligh, (1999), tourism industry is an important source of income for many countries. However, Goodwin, (2006) identified that the net foreign exchange earnings from the industry are far less than the gross receipts.
Tanzania being one of the least developed countries (LDCs) it regards tourism as an important economic growth driver because of its contributions in the areas of foreign exchange earnings, overall state revenue and improving social welfare of people in the destination areas. Accordingly tourism is expected to foster economic growth through foreign exchange earnings, by creating job opportunities in many other related industries in the value chain as well as fostering balanced regional development (Dieke, 2003).
It goes without mentioning that despite active involvement of governments in formulating policies and strategies to enhance their tourism sectors, there has been significant leaching emanating from repatriation of revenues, wages and imports leaving the third-world destinations with a meagre return from the exploitation of their natural resources. As a result efforts directed towards the attainment of environmental sustainability and economic growth, are barred (Yilmaz and Bititci 2006).
Actors in the tourism industry are however numerous spanning from tour operators, travel agents, accommodation facilities (i.e. hotels, lodges,