Economic Welfare Analysis On Tourism Revenue Distribution In Serengeti District, Tanzania

ABSTRACT

This study assessed and analyzed how tourism revenue generated was distributed at various community levels and its impact on household welfare. Data on sources of revenues, income generated and expenditure were collected from key informants and supplemented with secondary data. Hunting, concession, bed-night and photographic tourism were identified as the major sources of tourism revenue. Distribution of tourism revenue to community level was assessed and the items on which the received revenue was spent were investigated and amount spent were estimated. Structured interview to 120 households randomly selected from Ikona Wildlife Management Areas and non-Ikona Wildlife Management Areas were used to collect socio-economic data. More than 50% of the revenue received was spent on construction, rehabilitation and maintenance of infrastructures such as schools, dispensaries and supply of clean water. Singita Grumeti Reserves distribute about TZS 30 million annually to households by supporting small and medium household enterprises. There were positive impacts of living on IWMA with the household welfare in term of total household income, household asset value and improved social services infrastructures. A Gini coefficient result was 0.41 with tourism income and 0.33 when tourism income excluded. This shows that tourism income increases 0.08 unit of income distribution inequality to the households. Although there is inequality it does not mean there is high poverty in IWMA, this inequality is due to the income difference between the top and the middle spectrum. Ordinary Least Square was used to analyses factors influencing household welfare. The analysis found that, improvements in education level, number of livestock, household asset and existence of tourist lodge in community influence household income and thus improve household welfare. It is recommended that if tourism revenue is distributed on household income generating activities, the total household income will rise and household welfare will improve.