Empirical Analysis of Factors Affecting International Competitiveness of Zambia’s Tourism Industry

Phillip Mutambo

doi:10.11648/j.ijpbs.20180301.12

Abstract

Zambia’s tourism industry has been developing noticeably for the last decade and it has become one of the major potential options for economy growth and diversification. Zambia is one such a country that offers unique attractive tourist sites yet it is not among the top 50 worldwide tourist destinations. This research was undertaken in order to empirically analyze factors affecting international competitiveness of the tourism industry in Zambia. The study used Trade Specialization Coefficient (TSC) as a measure of Tourism Industry Competitiveness in Zambia, and carried out an Empirical Analysis using econometric variables selected based on Porters Diamond Model of competitiveness. Using a Principal Component Analysis and Multiple Linear Regression Analysis, the study found that 78.3% of the International Competitiveness of Zambia’s Tourism Industry can be explained by the identified variables in this study. This study concludes that there is need to develop a tourism development plan that streams down from a national to regional level, which will strengthen actions on the ground, leading to a coordination necessary to create opportunities for linking the tourism industry to policies going hand in hand with investment opportunities provided by modern information and telecommunications, which are necessary for improving the Internationational competitiveness of Tourism Industry.

Highlights

The country of Zambia in the southern part of Africa, has untapped environmental tourism reserves, talk of its richness in cultural and heritage sites, ample wildlife, rich water resources, harmony and serenity.Zambia is one such a country that offers unique attractive tourist sites yet it is not among the top 50 worldwide tourist destinations
The Multiple Linear Regression Analysis carried out in this study indicated that the value of R Square is 0.783, which indicates that 78.3% of the International Competitiveness of Zambia’s Tourism Industry can be explained by the independent variables identified and tested in this study. 78.3% is quite sufficient in this case to support the validity of this study
The variables making up this composition are as follows; Gross Domestic Product (GDP), Inflation (INF), Net National Income (NNI), Consumer Price Index (CPI), Commercial Banks and Creditors (CRED), Education Expenditure (EDEX), Gross National Expenditure (GNE), Health Expenditure (HEX), Improved Sanitation Facilities (IMST), Trade Openness (TROP) and Air transport registered carrier departures worldwide (AIRT)

Summary

Introduction

The country of Zambia in the southern part of Africa, has untapped environmental tourism reserves, talk of its richness in cultural and heritage sites, ample wildlife, rich water resources, harmony and serenity. Zambia is one such a country that offers unique attractive tourist sites yet it is not among the top 50 worldwide tourist destinations. The country has a great landmass, an abundance of natural resources, a temperate climate and a stable political environment This should make it an ideal tourist destination, yet out of the whole Sub Sahara Africa, Zambia only commands 0.6% of the total demand for tourism in the region (Tourism and Travel Council, 2008) [1]. This research has analyzed those factors that are affecting international competitiveness of tourism industry in Zambia

Objectives

Findings

Discussion

Conclusion