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 (FDI) to poverty alleviation in Tanzania. The author uses a case study method. Tanzania Game Trackers Safari (TGTS) was selected because it had operations in 125 villages in Tanzania—a wider coverage than that of other companies. The study evaluated the impact of TGTS’s activities on income generation, the utilisation and conservation of natural resources, technology transfer and human capital development. In-depth interviews were conducted in 45 villages in areas where TGTS operates. 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. Overall the results indicate that well supervised and managed inflow of FDI into strategic sectors can have a positive impact on livelihoods of local communities.