CHAPTER TWO
LITERATURE REVIEW
2.0 CONCEPT OF TOURISM
Tourism that be practiced in rural areas has been defined by Gannon (1994:5) as the “range
of activities services amenities provided by farmers and rural people to attract tourists to
their area in order to generate extra income for their businesses’’.
In 1981, the International Association of Scientific Expert in Tourism defined tourism as a
form of particular activities selected by choice and under taken out side the home.
Huzinker and Kraft (1941) have been defined the world `tourism is a temporary, short-
term movement of people to destination out side the place where normaly live and work
and their activities during the study at each destination `. It include movement of all
purpose.
Tourism is defined as, ‘the activities of people travelling to and staying in places outside
their usual environment for no more than one year for leisure, business, and other purposes
not related to an activity remunerated from the place visited’ (World Bank, 2009, p393).
While this definition of a ‘tourist’ is readily adopted by most, it is often quite tricky to
apply in practice in a developing country. For instance, a lot of domestic tourism in
developing countries – often very much under the radar of official statistics that will equate
‘tourist’ with ‘foreigner’ – is business tourism. A trader from a peripheral town who
comes to the capital city to buy goods to take home to sell is a business tourist. However, if
she sells any goods in the capital city, she is earning funds from the destination and
becomes a migrant worker. The distinction is subtle and the implications of defining a
person as a ‘tourist’ or a ‘migrant’ are important.
In general Tourism can be defined in many different ways but what ever the definition is,
it should be include the movement from one to another purposely for business, leisure or
any activities for a specific period of time.
Studies about the economic growth and poverty reduction have been conducted in Eastern
Europe of Greece for the Prefecture of Lassithi in Crete about the tourism at the rural areas
development.
The WTO launched its publication Tourism and Poverty Alleviation in Johannesburg in
2002 (WTO, 2002b); published recommendations for action on tourism and poverty
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alleviation in 2004 (WTO, 2004); and has launched a Foundation: Sustainable Tourism –
Eliminating Poverty (ST-EP) that is now developing pilot projects in many developing
countries. All this is based on the assumption that tourism can be an effective tool for
poverty reduction. The WTO called for broad and specific indicators of poverty alleviation
resulting from tourism, saying that ‘such reporting may be a condition of any assistance
given’ (WTO, 2004). However, to date, WTO and ST-EP are not generating the empirical
Evidence that would either provide the information for their partners to overhaul tourism
policy in a pro-poor way, or would substantiate the benefits of specific interventions.
The bulk of the pro-poor tourism literature has not been aimed at measuring impact but on
assessing what strategies can help expand impacts on the poor. While there have been
practical reasons to focus on promoting interventions, the lack of quantification of impact
is indeed recognized as a weakness in the propoor tourism literature by its proponents
(Saville, 2001; Poultney and Spenceley, 2001; Nicanor, 2001; Bah and Goodwin, 2003;
PPT Partnership, 2004; McNab,2005; Ashley et al, 2005; Goodwin, 2006a) as well as its
detractors (Chok and Macbeth, 2007).
Tourism advisers from the Netherlands Development Organization, SNV, have just
completed an assessment of government strategies for increasing local economic impacts of
tourism in Rwanda, Kenya, Ethiopia, Tanzania and Mozambique. Not only the
assessments, but the policy document and strategies they review, are strikingly devoid of
empirical evidence concerning impacts of tourism on poor people, bar some headline
employment figures, a couple of pieces of data from village projects and the occasional
statistic from a World Bank report (Verdugo,2007; Weru, 2007;Mtui,2007;Sarmento,2007).
Policy recommendations have fragile empirical foundations.
Studies by Harrison(1990), Sharpley (1996), and Butler et,al (1998:224).They point that
there is a contribution of rural tourism in the development of the rural area of Eastern
Europe.
In another studies about the Rural tourism is conducted by Lane (1994:17) “Traditional
agriculture and forest were central to rural life. They were the major employer of labor, the
main source of income within the rural economy and indirectly had powerful influence on
traditions, power structures and life style. He suggests that if they implement well on
attracted tourists they will improve the rural development.
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In another development, Candela (1992) Fernandez,(1990), Gomez (1998) and related with
this what was the behavior of demand (Bote, 1987), Garcia (1995).They literature on Rural
tourism in Spain, their goals was initially instrumental to understand how rural tourism
could be good tool for rural development.
2.1 STATEMENT OF THE HYPOTHESIS
This study used linear regression economic model to test the hypothesis of zero impact on
independent variable to dependent variable. It examine whether the independent variable
has the significance impact to dependent variable or not. In this study GDP is used as an
indicator of development and so is a Dependent variable while Tourism is an Independent
variable.
The model of this study will be:
GDP = ß0 + ß1t + €t
Where as:
GDP = Dependent variable.
ß0 = The constant term that indicates the amount of GDP collected from tourism when t is
equal to zero.
ß1 = Slope coefficient that show the % increase in dependent variable when independent
variable increase by 1.
t = Tourism (income collected from it).
€t = Stochastic error term.
The tests of this model are:
HO: ß1 = 0
HA: ß1 ≠ 0
Where as:
HO: ß1 = 0 is our null hypothesis that the coefficient of independent variable has no
significance impact to dependent variable.
HA: ß1 ≠ 0 is our alternative hypothesis that the coefficient of independent variable has
an impact to dependent variable. The impact may be Positive or Negative.
The hypotheses which were tested are as follow:
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Tourism will neither increase economic growth nor poverty reduction to the rural people
of Zanzibar.
Tourism will increase economic growth and reduce poverty to the rural people of
Zanzibar.