Contribution of Tourism FDI to Poverty Alleviation: A Selected Case from Hunting Safaris in Tanzania

Abstract

This study assesses the contribution of tourism-based foreign direct investment to poverty alleviation using the single case-study method. It focuses on income generation, natural resources and environmental conservation, technology transfer to the local community, human capital development, and access to health and water services, job creation and economic empowerment for conservation as its contribution to poverty alleviation. Forty-four (44) companies were granted hunting licences in 2014. Of the companies, Tanzania Game Trackers Safari (TGTS) operates in 125 villages in Tanzania—a wider coverage than that of other companies. Therefore, this study took TGTS as the case and conducted in-depth interviews in 45 villages in areas where this company operates. For representativeness, the villages were picked from five different wards, namely, Moyowozi Game Reserve, Mwiba Wildlife Reserve, Lake Natron Game Controlled Area, Ugalla Game Reserve and Maswa Game Reserve. The respondents constituted two government officials from the Wildlife Division of Tanzania, the project coordinator, two field officers and one representative from nearby villages. The study results show that some of TGTS’ profits go to the communities in or adjacent to the protected areas, as it engages rural communities in conserving and preserving the protected areas, and contributes to poverty alleviation through village banks, student sponsorship, library support, construction of dispensaries and school dormitories, environmental education and tree nursery programmes. On the basis of these findings, it can be concluded that well supervised and managed inflow of FDI into strategic sectors can have a positive impact on livelihoods of individual communities.