Economic Contribution of Tourism Development In Case Of

Hawassa Town

ARBAMINCH UNIVERSITY

College of Business and Economics Department of Tourism

and Hotel Management

A Proposal Submitted To Department Of Tourism and Hotel Management in

Partial Fulfillment of the Requirements for the Bachelor of Arts Degree in
Tourism Management

By

Fikru Kanasho

Advisor:

Neguse Tiruneh (MA)

Jan, 2016

Arab, Minch Ethiopia

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Tables of Contents

CHAPTER ONE……………………………………………………………………………….1

INTRODUCTION……………………………………………………………………………1

1.1. Background of study……………………………………………………………………………….1

1.2. Statement of the problem………………………………………………………….………2

1.3. Objectives of the study……………………………………………………………..........2

1.3.1. General Objective………………………………………………………………………2

1.3.2. Specific Objectives………………………………………………………..……………2

1.4. Research questions………………………………………………………………………3.

1.5. Significance of study……………………………………………………….……………3

1.6. The scope of the study………………………………………………………….……….3

1.7. Definition of key terms…………………………………………………………………4

1.8. Limitation of study……………………………………………………………………..4

1.9. The structure of the report……………………………………………………………..4

CHAPTER TWO………………………………………………………………………………..

REVIEW OF RELATED LITERATURES……………………………………………………..

2.1 Overview of Economic Contribution of Tourism………………………………………………

2.2 Forms and concepts of sustainable tourism…………………………………………………….

2.3. Local community as stakeholders in tourism Development…………………………………

2.4. Theories of tourism…………………………………………………………………………..

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2.5. Tourism Multiplier analysis………………………………………………………………….

2.6. Factors affecting the development of tourism sectors…………………………………………

2.7. Tourism development in Ethiopia……………………………………………………………..

2.8. Tourism as a tool for poverty alleviation in Ethiopia………………………............................

2.9. Impacts of tourism sector………………………………………………………………………

2.9.1 Environmental Impacts of tourism………………………………………………………….

2.9.2. Socio-cultural impacts of tourism…………………………………………………………

Economic impacts of tourism…………………………………………………………………….

2.1o. Conceptual framework of the study…………………………………………………………..

CHAPTER THREE……………………………………………………………………………….

METHODOLOGY……………………………………………………………………………….

3.1. Description of study area …………………………………………………………………….

3.1.1. Population………………………………………………………………………………….

3.1.2. Topography and Climate……………………………………………………………………

3.2. Research Design……………………………………………………………………………….

3.3. Target population…………………………………………………………………………….

3.4. Sampling technique and sample size determination…………………………………………

3.5.Source of data…………………………………………………………………………………

3.6.1.Data gathering procedure……………………………………………………………………..

3.6.2 Data analysis …………………………………………………………………………………

3.6.3 Ethical consideration………………………………………………………………………….

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3.7. Work plan…………………………………………………………………………………….

3. Budget Break down………………………………………………………………………..

Reference…………………………………………………………………………………….

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 CHAPTER ONE

INTRODUCTION

1.1 Background of study

International tourism has become the major source of economic development strategies for the
least developing countries (LDC), alternative source of foreign exchange next to oil. Tourism is
the highest employer of labor after agriculture. However, the full potential of tourism as
development option has yet realized in many LDCs (Bonfig, 2007).

Tourism is vital for many countries due to the income generated from consumption of goods and
services of tourists, the taxes levied the business in the tourism industry, and opportunity for
employment and economic advancement of working in the industry. The impact of tourism to
highlights when the United Nations general assembly designed 1967 as the international tourists
year. twill recognizes that tourism is a basic and desirable human activity deserving the praise
and encouragement of all peoples and government (Goh, 998).Therefore it is the value
alternatives to embark an economic development reducing poverty and empowering the majority
(Coper,2001).

Ethiopia has huge tourism potentials of both cultural and natural resources which have power to
attract both international and domestic tourists. The cultural and natural tourists attraction
features of ancient churches and monasteries, rivers and lakes, deserts, wild life, suitable
climates, various festinating landscape features, caves, forests or sites maintains, traditional
cultures and festivals (Boni face and copper, 2001).Today Hawassa is one of the beautiful towns
and an enjoyable for the tourists. The major tourist attraction in Hawassa are the green vegetation
releasing fresh air and Hawassa Lake by which different birds and aquatic animals live
fascinating appearance to the town. It is almost surrounded by mountains and hills; on the west,
tabor hill, in the south west, Mount Alamura almost enclosed the town. Moreover, Amora Gedel
the home of different birds species, and Gudumale the “Fiche” make Hawassa look, so
interesting and unique destination for tourists. Thus, exploring this town really enjoyable for
both foreign and domestic tourists.

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1.2. Statement of the Problem
There are problems to relate tourism development affects the economy of the Ethiopian towns
like poorly trained human resource management and lack of coordination between public and
private sectors and low attention given to natural conservations (SNV-Ethiopia, 2009).

Tourism is generally viewed as an engine for economic development and as mechanism for
poverty reduction. Although the town of Hawassa has many tourist attraction sits and resources,
but still now its economic contribution is infant because of many problems such as lack of
community participation in tourism activities of the town, low level of protection of natural and
cultural resource, lack of community awareness towards tourism, un employment problem, lack
of infrastructural development, lack of accommodation Genet, (2004). Hence this imbalance
between the potential and actual performance motive the researcher to conduct a study on this
topic.

1.3. Objectives of study

1.3.1 General Objective

The general objective of the study is to assess the economic contribution of tourism development
for Hawassa town.

1.3.2. Specific Objective

The specific objectives of this study includes

1. To assess the problems that affects the economic contribution of tourism development for
Hawassa town.
2. Assessing the performance of tourism development.
3. To create awareness about the economic relevance of tourism for the Hawassa town.

1.4. Research question

1. What are the problems that affect economic contribution of tourism development for
Hawassa town?
2. What are the performances of tourism development?
3. How can we create awareness about the relevance of tourism for the town?

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1.5. Significance of the Study

The study have the following significance for different stakeholders; the study help to know the
problem and economic contribution of tourism development in Hawassa town. It can make clear
the relationship between tourism and local community and, it can help to researchers to give
important information,

1.6 The Scope of the Study

The scope of the study more focuses on the economic contribution of tourism development in
Hawassa town. This study was focused only on the economic aspects of tourism development
(positive impact of tourism for economic development) in the town Hawassa.

1.7. Limitation of Study

This research paper has its own limitation that faced when the researcher conduct the research.

Time limitation: the time available to conduct this particular research paper is not sufficient
enough to gather all the required detailed information because of additional activity of the school
and other constraints. Unwillingness and carelessness of some respondent to give full
information. Financial constraints and wasting of questionnaires for conducting the study.

1.8. Definition of Terms and concepts

Stakeholders is any person, organize social group or society at large that has a stake in the
business. A stakeholder is often contrasted against a shareholder, which has an ownership
interest in the business. Source (R. Edward Freeman and his book strategic management).
Constraints are something that plays the part of a physical, social, or financial restriction. It is
derived from of the intrusive verb from constrained.

1.9. Organization of the Study

The research was organized into five chapters; the first chapter is an introductory part which
focuses on background of the study, statement of the problem, objectives of the study, research
question, and significance of the study, scope and limitation of the study. In the second chapter,
deals with the review of related literatures were present. The third chapter is all about the
research methodology. The fourth chapter is developed to the analysis and last chapter, deals
with conclusion and recommendation.

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 CHAPTER TWO

REVIEW OF RELATED LITERATURES

2.1 Overview of Economic contribution of Tourism

Timothy and Loannides(2002), in many less developed regions, tourism has been developed
and controlled by large multinational tourism companies with title regard for socio-cultural
and economic conditions (Sharpley and Telfer, 2006).This is one character of mass tourism
which has little for the host community when compared to sustainable tourism that is why
sustainable tourism is needed as a tool for alleviating poverty.

Sharpley argue that the notion of sustainable tourism does not allow for the potentially
significant contribution that more traditional, mass, forms of tourism can make to the socio-
economic development of host community (Shorpley and Telfer, 2006). But , mass tourism is a
type of tourism where larger number of tourist the destination that affects the ecology and
culture of the destination and the economic out lets are controlled by foreign companies this
may resut in high rate of leakage . So that the mass tourism concept does not benefit the
majority of host community especially the poor section of the population. Timothy stated that
community tourism is about developing the industry in harmony with the need and aspiration of
host communities in a way that is accepted to them, sustains their economies, rather than the
economies of others, and is not detrimental day to day convenience’ (Fitton, 1996).During the
1980 alternatives (to mass tourism) were proposed in the form of responsible, Soft, appropriate,
or green ‘tourism. Thus the concept of alternative tourism proposes, indirect contrast to mass,
florist type tourism production, locally controlled, appropriate small scale development with the
community as primary instigators and beneficiaries of tourism(Sharpley and
Telfer,2006).Sustainable tourism development duties definitions, much of the literature remains
concerned as definitional, as opposed to operational issue, Sharpley stated that defining
sustainable development in the context of tourism has become something of cottage industry
(Garrod and Fyall ,1998). At the same time sustainable tourism development has been referred to
as an adaptive parading or asset of meta-principles with in which different development
pathways may be legitimized according to circumstance (Hunter, 1997). Croll stated that like
many new ideas, sustainable tourism is integrated in many different lights or from different

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perspectives, which may be incompatible (Croall, 1995).Definitions vary according to
circumstances. In much- visited fragile area of the country side the focus may be on sustaining
the physical environment by taking steps to prevent long term damage. In another place the
accept may be on sustaining the viability of the local economy, or maintaining the authenticity of
the community artistic traditions. Some observers feel that the concept is only being superficially
grasped, or used for political convenience, white(1991), alternative tourism (Holden,1984
Eadington and Smith, 1992), responsible tourism (Harrison and Husbands,1996), nature tourism
(Whelan,1991) pro- poor tourism, community based tourism, are subject to various definitions
being widely perceived as being synonymous with sustainable tourism.

2.2 Forms and concepts of sustainable Tourism

These are different interrelated forms and concepts of sustainable tourism related all aviating
poverty. Roe, Goo dwin and Ashley stated that pro- poor tourism is not specific tourism
product (Niche sector) but an approach tourism development that attempts to enhance linkages
between tourism business and poor people, in order to change the current distribution of benefits
and increase tourisms contribution to poverty reduction.

Pro poor over laps with other approaches, including sustainable, responsible, community based
or eco-tourism, the key distinctive feature is that pro-poor tourism focuses on practical initiatives
which can use tourism have focused legal on mass tourism distinctions. Social and economic
issues are usually added to environmental concerns. Similarly the eco-tourism initiatives usually
benefits local people, but with strong environmental angle. Community based tourism initiatives
aim to increase local peoples .Singh, 2004,147

2.3. Local Community as Stakeholders in Tourism Development

Local communities are regarded as important asset in tourism development as it is within their
premises that these activities take place. Local communities are also regarded as legitimate and
moral stakeholders in tourism development (Hauke land 2011; Jamal and Stronza 2009) because
their interest affect and are affected by decisions of key policy makers. Mayer (2005) divides
stakeholders into two categories: first are stakeholders who affect decisions and the second
categories are those stakeholders who are affected by decisions.

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The degree of involvement of local communities in various decision making and policy issues is
determined by these decision and policies. This ensures that development meet the perceived
needs of the local community. If decisions concerning the development of tourism in region are
not made in consultation with the local community during the design stage, it will impossible for
the local communities to be involved during implementation (Naezgoda and Czernek,
2008).Likewise there will be little support of local communities for tourism activities. Whichever
circumstances, it is vital to identifies and involve key stakeholders right from the design,
stage .Failure to do so can cause technical or political difficulties during implementation and can
significantly influence the success and outcome of the process. Intact, enabling wide
participation of various stakeholders in the decision making process, including local
communities, makes possible to gain knowledge about other stakeholders, acquire new skills
and share idea which, in turn fosters understanding of regional problems and allows for
generation of new and innovative solution(Niezgoda and Czernek, 2008). According to Bushel
and Mc Cool (2007), local communities have historically coexisted with the protected areas- the
key tourism attractions. Therefore the involvement of local communities in tourism development
and conservation that denies the rights and concerns of local communities.

2.4. Theories of Tourism

There at least two prominent theories of tourism

A. Theory of Tourism Area life cycle

Considerable attention will be given in the argument that tourist areas not only a
change characterizes tourist area as passing through life stages that progress, from
birth to death.
This concept has become very influential in tourism and clearly has major implication for
sustainable tourism, particular as the model suggests that each stage of the cycle has
implication:

 The level and nature of contact between host and guest

 The degree of change in the destination
 Who is the control of the local tourism industry

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 Stagnation
Rejuvenation

Reduced growth
Stabilization

No of tourists
Consolidation Decline

Development
Immediate Decline

Involvement

Exploration

Fig 1: Tourist Area Life Cycle

This model is developed Butler and clearly shows that as the destination develops, problem arise
in relation to the fact that outsiders begins to take control of the tourism industry, and contact
between locals and visitors become more formal and institutionalized.

In terms of sustainable, one of the increasing trends is that the tourist area life cycle is getting
ever shorter due to the desire of tourist to constantly find new place to visit and completion and
growth of destination.

Stagnation and decline, because of this factors, can sometimes been seen in a matter of a few
years after the destination first began to attract significant number of tourists. This shortening of
the life cycle is clearly a threat to sustainability and could lead the investment never being rapid.

Source James C. Makens, (2006)

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B. Theory of Tourism Multiplier

Tourism expenditure is an invisible export in that it create a flow of foreign currency in to the
economy of the destination country, like most of the form of exports, this in flow of revenues
creates additional business turn over house hold income and government revenue the initial
tourists spending is received a revenue by hoteliers, shopkeepers, taxi drivers and others.

2.5 Tourism Multiplier Analysis

Tourism multiplier is the number by which initial tourist expenditure must be multiplied in order
to obtain the total cumulative income effect for a specified period. The multiplier concept is
based on the recognition that the various sectors which make up the economy are interdependent.
Therefore, any autonomous change in the level of final demand will not only affect the industry
which produces that final product or service, but also that industry’s suppliers and the suppliers’.
Employment multiplier (which is difficult to operational zed due to problems to set relationship
between employment and its role in tourist expenditure) and income multiplier are examples of
tourism multiplier.

The actual size of multipliers in the analysis of the economic impact of tourism can be
summarized as follows:

 Multipliers analysis helps researchers to measure the present economic performance of

the tourism industry and the effect of short term changes in demands on the urban
economy.
 Multiplier may be used to assess the effect of public and private sector investment.
 Multipliers are frequently used to estimate the impact of tourist expenditure on tourism
enterprise (direct, indirect and induced).

2.6. Factors affecting the development of tourism sectors

WTO (1993) considered factors that affect the development of tourism sector. Tourism
development is influenced by two categories, of factors: demand and supply factors. The demand
factors are related tub the international tourist markets and local residents who are using those
originally designed facilities attraction and service for tourist. The supply factors which

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explained by WTO and mostly associated with the destination which includes attractions and
activities, accommodation, other tourist attraction facilities and service

2.7. Tourism Development in Ethiopia

In Ethiopia tourism one of the focal sections of the five year development plan (PASDEP) 2006-
2010 government of Ethiopia has set an initiative to develop the tourism Ethiopia (UNWTO).
According to UNWTO report in Ethiopia establishing and weaving link between tourism activity
and poverty reduction are critical relational for considering public investment in the sector
tourism growth is most often measured though the increase international arrivals length of stay
bed occupancy, tourism expenditure and value of tourism spending. The study identified the
tourism generated approximately 1345 dollar million country expenditure revenue from a base of
about 150000 foreign visitors who come to Ethiopia for various purposes such as leisure
(63000) business and conference( 62000) and to visit friends and relatives (25000) (UNWTO).

2.8. Tourism as a tool for poverty alleviation in Ethiopia

Yusuf Abdullah states that Ethiopia’s tourism policy recognizes the vital role of the private
sector in development and the usefulness of public – private partnership in promoting a healthy
and sustainable growth in tourism. It advocates community participation in tourism planning and
development at the local and coordination at regional and federal level (UNWTO, 2002).

2.9. Impacts of tourism sector

Tourism is the biggest and the fastest growing industry in the world. This fast growing industry
has significant impacts on both tourist generating and tourist destination area.
The impacts of tourism can be categorized in to economic, socio cultural and environment
impacts (Holden, 2000).

2.9.1. Environmental Impacts of Tourism

Environment is the major tourism attraction potential for tourism industry on the other hand
tourism industry affects the natural environment in various forms which have future impaction
the development of tourism. The major construction of infrastructure and services may be the
cause of change of landscapes and drainage pattern, decreasing the size of presence space, loss of
fauna and less of flora.

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 Table Environmental Impacts of tourist

Positive impact Negative impact

 Protection of natural  Pollution of and water noise

environments and preservation solid Waite visual disturbance.
from further environmental  Lose of agricultural and forest
degradation. land.
.  Loss of change of natural
 Improvements in the quality of landscape and drainage pattern.
the natural environment  Disturbance of wild life

2.9.2. Economic Impacts of Tourism

The impact of tourism in the economy is felt mainly through forward and backward linkages
expressed as demand for goods and service in the agriculture.
The WTO has developed the standard international classification of tourism activities (SICTA)
which has been provisionally approved by the United Nations statistical commission. Therefore,
it is more difficult to measure the economic contribution of tourism. Tourism development
contributed a significant proportion of the national income of many countries. The induced
effects are used to calculate economic multiplier, which can be used to estimate the impact of
tourism.

2.9.3. Conceptual Framework

According to (Ajala, 2007) the economic development through tourism has both positive and
negative consequence. The unfavorable economic effect on the host community include
increasing the price of good, and service increasing the cost for infrastructure, increase the price
of land and non- local owners of tourism. On the other tourism have positive impacts for the
communities, region, and the nations. These are:-

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  Income generated; it has contribution to international of domestic product. This indicates
the relative importance of tourism in total economy.
 Foreign exchange /Balance of payment; The total expenditure of foreign tourist, net
foreign exchange earnings, the foreign exchange remaining in the country after
dedicating the foreign exchange leakage factor.
 Local employments; direct employment, the person who working tourism enterprises
such as hotels, restaurant tourist shop, tour and travel agencies, indirect employment
include, jobs generated in supplying sectors such as agriculture, fisheris and
manufacturing. Induced employment is additional persons supported by the spending of
income made by the direct and indirect employees.
 The multiplier effect; this refers to the stimulus that an external source of income on an
economy. It is a number of rounds of spending in the local economy of the initial tourist
spending.
 Government revenue; this include hotel and other types of tourist user taxes, airport
departure taxes, custom duties on imported goods used in tourism, income taxes on
tourism enterprises and employees and property taxes on tourism establishments.
 Linkages; it strength the linkages between tourism and other economy section. This
reduces the import content of tourism and providers more local employment
 and income
Income from
Generated
Foreign exchange

Economical contribution of
Linkages tourism development Local Employment

Government Multiplier Effect

Revenue

Figure 2: Economic Contributions of Tourism.

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 CHAPTER THREE

RESEARCH METHODOLOGY

3.1. Description of study area

Hawassa is the largest and beautiful town in Ethiopia, located along the shores of Lake
Hawassa.Hawassa was established in1952/1960 GC. The cause for the foundation was the
natural beauty from Lake Hawassa. Hawassa formerly known Hawassa is the capital town of
SNNPGS in Ethiopia. The town which was the economic and cultural hub of the regions with
the total area oh 152km2 divided in to 8 sub towns (cifleketema) and 32 kebeleCurrently, the
town is a teeming, vibrant regional capital with one of the counters’ most chosen tourist and
industrial sites. The strategic locations and the natural attractions enabled the town to be a home
for the diversified social entity. The by itself had made the town, one of the most prime tourist
destination sites in the Southern edge of the country.www. Hawassa on line com.

Hawassa is located between38 24’-380 33’ east longitude and 06 0 54’-070’ north latitude
occupying relatively flat plain in the rift valley at the average elevation of 1690m above sea
level.( Woldeyehonis and Timer,2006).

3.1.1. Population
According to 2007, national population and housing census the current projected population of
Hawassa were 329,734 of which 210,676 live in the town and 119,058 in the fringe and
surrounding area. The growth and expansion of Hawassa town considered to be radical when
compared with every town in the country.(Woldeyehonis and Timer, 2006).

3.1.2 .Topography and Climate

The areas divided in to two temperate zones. Kola temperature zones with attitude variation from
550-3400 meter above sea level and temperature range from 250c-270c and weinadega
temperature zone with altitudinal variation from 1500 0-34000cmeterabove sea level and
temperature ranging from 110cand 160c (Woldeyehonis and Timer, 2006)

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3.2. The Research Design
The research design use in this is research study is descriptive because descriptive research
design is advisable for tourism related research studies because of it is a new field of study
which enables researcher describe deeply. The descriptive research design help provide answers
to the questions of who, what, when, where and how associated with a particular research
problems. The researcher was used mixed approach which combines the qualitative approach
and quantitative approach in order to describes the collected data.

3.3. Target population

The subjects or participants of this study are not the entire population of the town Hawassa.
Rather it emphasizes on service providers (Professional or Cultural Tourism Office, Business
Community (includes souvenir shop and hotels), and tourist). The researcher gets information
from them though interview and questionnaires

3.4. Sampling Technique and Sample Size

3.4.1. Sampling Technique

The researcher use non-probability (Purposive and convenience) sampling techniques to conduct
the research. Because the exact population number of study area is not known and recent census
is not conducted in the area. It is the best way to ensure that results are unbiased.

3.4.2. Sample size Determination

The researcher uses a sample size of 28 individuals from the target population. That is 10
individual who work in Business Community (souvenir shops, and hotels) 8 who are tourists and
10 individuals who are work in tourism professionals or Cultural tourism office.

3.5. Source of Data

In this study, the researcher used both primary and secondary data sources to collect data
from different sources in order to get accurate and reliable information and to achieve
the objective of the study. Sources of secondary data were from statistical documents,
individuals performance reports, published and unpublished materials and from manuals

17
of Hawassa culture and tourism bureau. The primary data sources were collected through
questionnaires and interviews from respondents.

3.6. Research Instruments

Questionnaires and interview were the main research instruments that the researcher used to
conduct this study on the economic contribution of tourism development in Hawassa town.

Questionnaire: The researcher was used some kind of data gathering method /mechanism helps
to asks different types of questions about the subject matter of the study to the respondent and
the researcher was used the questionnaires contain both open and closed questions.

Interview: The researcher was used such mechanism of collecting or gathering data because it
may help us to know as understand the internal feeling of those subject. The researcher was
using structured interview in this study. Before distribution the questionnaires to the target
respondents, the researcher prepare questions for questionnaire and interview. After approval,
the questionnaires were distributed and also the interview has been conducted, with the
selected, with the selected sample and the researcher used different methods to collect
from the respondent. After retrieval of the questionnaires and conducted the interview
with the respondents, the researcher arrange the data manually in order to create clarity
and easiness for reader.

3.7. Method of Data Analysis

In order to analyze and interpret the data, the researcher classifies and checks data
which the data collected was be organized and sorted out of give meaning to study. In this
study the descriptive methods of data analysis will be used to analyze the data and make
understandable. The researcher will be conduct information both primary and secondary data.
First the researcher was gives questionnaire that are willing to answer the question for tourism
cultural office, was filled those questionnaires and also interview is collected from tourism
cultural office and the researcher was gives questionnaire for business community (souvenir
shop and hotel). So far in order to get as possible reliable and appropriate information from
selected sample subjects (respondent) the researcher was used methods of data analysis. The
data was described by using table and percent.

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 CHAPTER FOUR
DATA ANALYSIS AND INTERPRETATION

4.1. Introduction
This chapter deals with the data analysis and result interpretation of the data collected from
respondents through questionnaires and interviews. The research was done on business
community (souvenir shop, guides and hotels), tourists and professional or tourism cultural
office who found in Hawassa. Out of 28 questionnaires, 2 (for tourists) are not returned.

4.2. Analysis of Data Collected from Business community

Table 4.1 Background of Respondents

No Deception Alternatives No of respondent Percentage

1 Sex Female 4 40%

Male 6 60%

Total 10 100%

2 Age 18- 30 5 50%

30-50 3 30%

50 and above 2 20%

Total 100%

3 Educational level Diploma 2 20%

Degree 5 50%

Masers and above 3 30%

Total 10 100%

Total Marital status Single 4 40%

Married 6 60%

Divorced - -

Total 10 100%

Source: survey, 2016

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According to table 4.1 above, the information gathered from respondents is as follows. Majority
of total respondents 6 (60%) are males and remaining4 (40%) are females. This may indicate that
participants of female are lower than participation of males in tourism business.5(50%) of
respondents were found in the age between 18 and 30 while remaining3 (30%)and 2(20%) found
in the age between 30 up to and above 50 respectively.

Moreover, the above table also depicts, the largest number 5(50%) of respondents were those
who have degree, 3(30%) of respondents workers who have masters and above, 2(20%) of total
respondents were workers who have diploma. As indicated in the above table, 6(60%) of total
respondents are married, while the remaining 4(40%) are single. This indicates the majority
number of respondents who participated in tourism business is married.

Table 4.2.Amount of Capital

Description Alternatives Respondents in No Respondents in

percent

1.Amount of capital < 500 2 20%

5000-1000 1 10%

10000-20000 3 30%

20000-50000 4 40%

Total 10 100%

Source: Survey, 2016

 Table 4.2 shows, 4(40%) of the whole respondent replied their capital is 20,000 – 50,000,
while 3(30%) respondents replied their capital is 10,000 - 20, 000, the respondents having
capital less than 500 are 2(20%) and the remaining 1(10%) of the respondents capital is
5000-10000. Therefore it is possible to conclude that the majority of the respondent
makes their business by using birr or capital between 20000-50000.

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Table 4.3.Relationship between tourism and main jobs in Hawassa

Description Alternatives Respondents in No Respondents in

percent

2.The relation of your Direct 7 70%

job with Tourism
Indirect 3 30%

No relation - -

Total 10 100%

Source: Field survey, 2016

Table 4.3 shows, 7(70%) of the total respondents responded their job relation with tourism is
directly while 3(30%) of respondent responded their job relation with tourism is indirectly. This
indicates majority of business community get benefit from tourism through directly relation.

Table 4.4: Seasonal fluctuation in business community income that affects their business

Description Alternatives Respondents in No Respondents in

percent

3. .Is there seasonal Yes 8 80%

fluctuation in your
No 2 20%
income that affects
your Business? Total 10 100%

Source, survey, 2016

According to the table 4.4 shows, majority 8(80%) of the respondent responded there is seasonal
fluctuation in their income which affects their business while 2(20%) of respondent responded
seasonal fluctuations in their income not affect their business. From this researcher concluded
that during off peak season the communities of business have been decreasing but increasing
during peak season.

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Table 4.5: problem of Seasonality

Description Alternatives Respondents in No Respondents in

percent

4.If your answer for Very high 3 30%

question number 3 is
High 2 20%
yes, how is it is
seasonality problem? Average 5 50%

Low - -

Very low _ -

Total 10 100%

Source: Survey, 2016

As it be witnessed from table 4.5 above, 5(50 %) of the whole respondent responded tourism
seasonality effect in their business is medium followed by 3(30%) and 2(20%) of respondent
replies the seasonality effect in their business is high and very high respectively. This implies
seasonality fluctuation has some problem for business in Hawassa town.

Table 4.6: annual profits of business in tourism in Hawassa

Description Alternatives Respondents in No Respondents in

percent

5. How much is the Unknown 2 20%

profit of your
annually? No profit - -

2000-10000 3 30

10,000- 50,000 - -

Above 50,000 5 50%

Total 10 100%

Source: Survey, 2016

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Table 4.6 shows, 5(50%) of respondent responded the profit of their business annually is above
50,000.3(30%) of respondent replied the profit of their business is 2,000-10,000. And remaining
2(20%) of respondent replied the profit of their business is unknown. so this indicates that the
annually profit is above the 50,000.

Table 4.7: Importance of Tourism for running business

Description Alternatives Respondents in No Respondents in

percent

6. Is tourism Yes 8 80%

important for running
No 2 20%
your Business?
Total 10 100%

Source: Survey, 2016

Table 4.7 shows, 8(80%) of respondent responded tourism has important for running their
business while 2(20%) of respondent it is not important in running their business. From this
researcher conducted that tourism has a good contribution for local community of the town.

Table 4.8: Opportunity of tourism development for business community organization

Description Alternatives Respondents in No Respondents in

percent

7. Is there any opportunity Yes 3 30%

for your organization, to
No 7 70%
participate in investment
and tourism development in Total 10 100%
Hawassa?

Source: Survey, 2016

Table 4.8 shows, 7(70%) of respondents agreed there is no any opportunity for their organization
to participate in investment and tourism development while 3(30%) of respondent responded

23
there is opportunity for their organization to participate in investment and tourism development
in Hawassa.

From this the researcher concluded that there is no more opportunity for business community to
participate in investment and tourism in Hawassa town. Some respondents reasoned out the
following regarding the opportunity for their organization to participate in investment and
tourism development.

 Increase the number of tourist time to time

 Improvement of infrastructure
 Increasing of their business profit

Table 4.9: Economic benefits of Tourism for local community

Descrption Alternatives Respondents in No Respondents in

percent

8. Does tourism bring Yes 10 100%

economic benefits to the local
No - -
community of Hawassa?
Total 10 100%

Source: Survey, 2016

Table 4.9 shows, all of the 10(100%) respondents replied tourism brings economic benefit to
local community of Hawassa. From this the researcher concluded that the economic contribution
of tourism are creates job opportunity for local community, a source of revenue for government,
Foreign exchange and can encourage tourism investors

24
Table: 4.10 Benefit of tourism for the poor

Description Alternatives Respondents in No Respondents in

percent

9. Is tourism Yes 7 70%

benefiting the poor?
No 3 30%

Total 10 100%

Source: Survey,2016

Table 4.10 indicates, 7(70%) of respondents responded the tourism is benefiting the poor while
3(30%) of respondent responded tourism is not benefiting the local community. From this
researcher concluded that most of communities were highly beneficiary from tourism.

Table 4.11: The way of increasing the positive impact of tourism

Description Alternatives Respondents in No Respondents in

percent

10. Which do you think Reducing entrance fee - -

the most effective way
in increasing the Easy of accessibility 4 40%
positive impact of Providing good guiding 6 60%
tourism for economic services
development?
Total 10 100%

Source: Survey, 2016

Table 4.11 illustrates, 6(60%) of respondents responded that providing good guiding service is
the most effective way in increasing the positive impact of tourism for economic development.
4(40%) of respondents responded that ease of accessibility is the most effective way to
increasing the positive impact of tourism. The above table indicates that providing good guiding
service has the great role to increase positive impact of tourism for economic development. So
appropriate training for guide is the best way for raising economic contribution of tourism
development in the town.

25
Table 4.12 general economic impact of tourism

Descriptions Alternative Frequency % share

Very low 1 10
1. Employment Low 3 30
opportunity due to
tourism in Average 4 40
Hawassa.
High 2 20

Very high - -

Total 10 100

Very low - -
2. Contribution of Low 1 10
tourism for income
improvement. Average 5 50

High 3 30

Very high 1 10

Total 10 100

Very low - -
3. The influence of Low 1 10
tourist in inflation
of Hawassa town. Average 2 20

High 4 40

Very high 3 30

Total 10 100

Very low - -
4. The role of Low 1 10
tourism to
eradicate extreme Average 5 50
poverty and hanger
High 3 30

Very high 1 10

Total 10 100

Source: survey 2016

26
Table 4.12 shows, 4(40%) of respondents responded that the employment opportunity due to
tourism is medium. And remaining 1(1o %), 3(30%), 2(20%) of them responded that the
employment opportunity. And 50% of respondents responded that tourism has a medium
contribution for income improvement. And 1(10%), 3(30% and 1(10%) of them responded that it
has low, high and very high contribution.

The table shows, 4(40%) of respondents replied that the influence of tourist in inflation is high.
And 1(10%), 2(20%) and 3(30%) of them replied that the influence of tourist in inflation is low,
average and very high.As the above table shows, 5(50%) of respondent replied that the role of
tourism to eradicate extreme poverty and hanger is medium. And remaining 1(10%), 3(30%) and
1(10%) of them replied that the role of tourism to eradicate extreme poverty and hanger is low,
high and very high.

27
4.3. Analysis of Data Collected From Tourists
Table 4. 13: Background of tourists

Alternatives No of respondents In percent

Age

15-30 2 33%

30-50 1 17%

50 and above 3 50%

Total 6 100%

Sex

Male 3 50%

Female 3 50%

Total 6 100%

Education level

Certificate - -

Diploma - -

Degree 2 33%

Master and above 4 67%

Total 6 100%

Purpose of visiting

Pilgrimage 2 33%

Recreation - -

Research - -

To learn about culture 4 67%

Total 6 100%

Source: Survey, 2016

28
Table 4.13 shows, that 3(50%) of respondents are male, among them 3(50%) are between the 50
and above and 2(33%) are between15- 30 and remaining 1(17%) are found from 30-50. 3(50%)
of the sampled respondents are female among them. 2(33%) are in the age of 15-30, 3(50%) are
between 50 and above and 1(17%) are age from 30-50. According to the above table 2(33%) of
the respondent completed their degree. And the rest 4(67%) of respondent completed their
masters and above.4 (67%) of respondents responded their purpose of visiting was to learn about
culture and 2(33%) of respondent responded their purpose of visiting was pilgrimage. From this
the researcher concluded that both male and female have equal participation in visiting, their age
were between 30-50, their qualification level were master and above and the purpose that most
tourist coming to Hawassa is to learn about culture.

Table 4.14: Tourists stay in Hawassa

Description Alternatives No of respondents In percent

1 For how long will One night 1 17%

you stay in Hawassa?
Two night 3 50%

Three night 2 33%

Four night - -

Total 6 100%

Source: Survey, 2016

Table 4.14 shows, 3(50%) of the respondent replied that they stay in Hawassa for two nights.
And 2(33%) of the respondent replied that they will stay for three night. And 1(17%) of the
respondent replied they will stay in Hawassa for one night. From this the researcher concluded
that the tourists will no stay for a long time

29
Table 4.15: Tourist average daily expense

Description Alternatives No of respondent In percent

1. How much is daily Around 400 birr or 1 17%

expense? less

400-800 3 50%

800-1200 1 17%

1200-1500 birr 1 17%

Total 6 100%

Source: Survey, 2016

Table4.15, 3(50%) of respondent responded their average daily expense was between 400- 800
birr. 1(17%), of respondents responded their expense was between 400-800 birr. And other
1(17%) respondents responded their average daily expense was between 1200-1500 birr. This
impels expenditure of the most tourists were between 400- 800 birr in daily.

Table 4.16: Service facility in Hawassa

Description Alternatives No of respondent In percent

3. How do you Very poor 1 17%

evaluate the service
Poor 3 50%
facilities here in
Hawassa? Average - -

Good 2 33%

Very good - -

Total 6 1-00%

Source: Survey, 2016

30
Table 4.16, shows, 3(50%) of respondent replied that the service facilities in Hawassa were poor.
2(33%) of respondent replied that the service facilities in Hawassa were good. And 1(17%) they
replied that the service facilities in Hawassa were very poor. As a respondents answer gives on
interview, Souvenir shops; locals can be cooperated, given training and finance as well as display
shops to offer object and clothes etc.

Agriculture; farmer association to offer vegetables and butter for hotel and restaurant.

Table 4.17: The price of facilities and service in Hawassa

Description Alternatives No of respondents In percent

How are the prices of Very high 1 17%

facilities and service in
High 1 17%
Hawassa compared to
their quality? Average 3 50%

Low 1 17%

Very low - -

Total 6 100%

Source: Survey, 2016

Table 4.17: above shows, 3(50%) of respondent responded as the price of facilities and service in
Hawassa is medium. And 1(17%) of respondent responded that it was high. And the same as
1(17%) of respondent responded that it was low and 1(17%) of respondent responded very high
respectively. From this the researcher concluded that the price of facilities and services in
Hawassa is medium when compared their quality.

31
4.4. Analysis of Data Collected From Tourism Profession (Cultural Tourism

Office)
Table 4. 18: Background of tourism professional

Alternatives No of respondents In percent

Sex

Male 5 62%

Female 3 38%

Total 8 100%

Age

18-30 2 25%

30-50 6 75%

50 and above - -

Total 8 100%

Education level

Certificate - -

Diploma - -

Degree 6 75%

Masters and above 2 25%

Total 8 100%

Marital status

Single 4 50%

Married 4 50%

Divorced - -

Total 8 100%

Source: Survey, 2016

32
Table 4.18 explanation 5(62%) of the respondents were male while 3(38%) were female. 6(75%)
of respondents were aged between 30 and 50 while the remaining 2(25%) were aged between 18
and 30. 6(75%) of respondent were bachelor of degree and other 25% of respondent were
masters. 4(50%) of respondent were single while 4(50%) of respondent were married.

Table 4. 19: Current condition of the tourism development in Hawassa

Description Alternatives No of respondent In percent

1.How do you evaluate It is currently developed 2 25%

the current condition of
It is currently developing 4 50%
tourism development in
industry
Hawassa
It is a poorly developed 2 25%
industry

I have no idea - -

Total 8 100%

Source: Survey, 2016

As the above table explanation 4(50%) of respondent replied that the current condition of
tourism development in Hawassa is developing industry, 2(25%) of them replied that it is a
poorly developed industry and the remaining 2(25%) of the respondent replied it is currently
developed industry. From this the researcher concluded that the current condition of tourism
development in Hawassa is at the medium level and it shows also there is untouched tourism
potential of Hawassa, but the actual one is only limited to investors ( Hotels, Shops and other
transportation owners) but the local people specially farmers and uneducated, poor people are not
yet more benefited from tourism

33
 Table 4.20: Actual benefit of tourism to local communities compared to the potential

Description Alternatives No of In percent

respondents

Do you think a local community in Yes 6 75%

Hawassa is benefiting well from
No 2 25%
tourism?
Total 8 100%

Source: Survey, 2016

According to the table explanation 6(75%) of respondent replied that local community in
Hawassa is benefiting relative to its potential while 2(25%) of respondent replied that they are
not benefiting well from tourism industry relative to its potential. From this the researcher
concluded that local community of Hawassa is gain a good benefit from tourism industry. The
respondent said that the available potential is not yet well identified, developed and marketed.
Only few young people are involved in hotels and guiding service. On the other hand, some of
the respondents said that first of all you cannot see community based tourism that much through
the town endowed tourism potential. So according to culture and tourism office, it is better to
make tourism community based; the government have to formulate feasible policies that can be
increase for tourism development and to minimize challenges, stake holders should be do things
very corporately and devotedly such as government and local community, participating the local
community in decision making, development of various organizations who offer tourism services
and involving locals in the sector and government should be open different opportunity for
tourism investment.

34
 CHAPTER FIVE

CONCLUSION AND RECOMMENDATIONS

5.1. Conclusion
This research is undertaken to investigate the economic contribution of tourism development in
Hawassa town. The main objectives of this study are to assess the contribution of tourism
development for the town.Detail examination of the issues discussed in the paper help to draw
important conclusion and to provide possible recommendations for future stratagem aimed in
promoting private and public sectors to play their role in overcoming the economic problems.

The major findings of this study are summarized as follows.

Tourism has medium employment opportunity, highly role in stimulating local handcraft
products, medium contribution for income improvement, medium role to eradicate extreme
poverty and hanger in Hawassa. Its main economic contributions are creating job opportunity for
local community, a source of revenue for government, foreign exchange and encouraging
tourism investors. Majority of business community get benefit from tourism through direct
relation.

There is no more opportunity for local community to participate in investment and tourism
development in Hawassa town. During off season the communities business has been
decreasing, but increase during peak season. Providing good guiding service has the great role to
increase positive impact of tourism for economic development. So, appropriate training for guide
is the best way for raising economic contribution of tourism development in the town. The
attention of government bodies to assess and supervise the standard of tourist attraction in
Hawassa is very scant.

There are many things which are missing or different in Hawassa when the respondent compared
with other country like absence of standardized roads around the sites, transportation to sites has
very high price, shortage of fast internet service, lack of proper tourist information offices,

35
information about the site is not clearly given, missing more cultural activity and entertainment
and low quality of the sanitation of hotel in the town.

There are many factors which hinder for the development of tourism in the town. Such as
shortage of fast internet service, missing more cultural activity and entertainment, lack of skilled
manpower who are skilled by tourism, lack of well infrastructure and quality of hotels,
corruption and lack of government attention towards tourism development.

5.2. Recommendations
On the bases of the discussion of the problem and findings drawn above, the data within the town
indicates that tourism enterprises developments have great potential but yet it is still with plenty
of limits.

In this case, the study forwarded the following remedies to strength the overall contribution of
tourism sector for economic advancement.

 The government should work to provide better infrastructure facilities that include modern
transport, accommodation and safe water service.
 The federal and regional government should collaborate on packing and promotion of
attraction destination in the region at international forum.
 There should be adequate financial, technical and marketing support to establish tourist
related business to foster tourism development.
 The government should give a special attention as much as possible in order to involve the
local communities in the tourism planning and decision making process in development of
the town..
 It is better to make tourism more community based then; the governments have to formulate
feasible policies that can be increase for tourism development and to minimize challenges.
 Government should give training for tourism service provider; create awareness among the
local community and private sectors about the tourism industry and its benefits.
 The local community should be involved actively in tourism planning and decision making
for successful development of the town.
 Finally, government should recruit the staffs that have a good abilities and knowledge in
tourism and hospitality profession

36
 References
Ajala (2007).Employment and Income potentiality of Tourism.

Boniface, C. (2001). Worldwide Destinations; The geography of Touriosm,Elsevier Butter worth

Heinemann, oxfordCroad.(, 3 (2) 218- 235.

Donalav.LMacLead (2006).Tourism, Globalization and Cultural change, First Indian Edition.

Getnet, B. (2004). Problem in development of tourism sector, second edition

Holden (2000).Impact and Globalization of Tourism.

James C. Makers (2006). Marketing and Tourism Development, Third edition.

L, Smith and W.R.Endington,( 1994) .Tourism Alternative potentials and

Problems in the development of Tourism.

McCool, S.F. and Moisey, R.N. (2001). Tourism recreation and sustainability; Linking cultural

and the Environment.CAB internal, Wallingford, UK, PP. 1-15.

P.C.SINHA. 1998. Tourism Impact assessment, first edition

R.K. Malhtra, 2005. Economic dimension of Tourism.

Sharply, Richard and Telfer, David J. Tourism and development channel view

Publications 2006.

SNV-Ethiopia Northern portfolio (2009).A base line study to identify potential for sustainable

pro poor tourism development in ANRS.

Timothy D. J. (2002). Cooperative Tourism planning in a developing destination. Journal of

Sustainable Tourism 6 (1), 52-68.

Wall, G. (1994). Eco tourism sustainable Environmental management 21 (4):483-491.

Whelan, T. (1991). Ecotourism and its role in sustainable development, PP. 3-22 in T. Whelan

Nature Tourism: managing for the Environment, Washington D.C: Island Pre

37
38
 Appendix

ARBAMINCH UNIVERSITY

COLLEGE OF BUSINESS AND ECONOMICS

DEPARTMENT OF TOURISM AMD HOTEL MANAGEMENT

Dear respondent, the purpose of this questionnaire is to collect data for the research entitled
economic contribution of tourism development in Hawassa town for the requirement of partial
fulfillment for ( BA) degree in tourism management in Arbaminch university, your genuine
response for the following question is extremely important for the successful completion of this
paper and the information you provide will be used for academic purpose and will be kept
confidentially.

Thanks in advance!

Instructions:

No need to write your name

Use (√) in the box provided

Write your answer for open ended space provided

Questionnaire to be fill by Business Community

Part 1: Background Information

1.1. Age: 18-30 30-50 50 and above

1.2.Sex: Male female

1.3. Education level: certificate diploma degree

39
 Masers and above

1.4.1Maritial status: single married divorced

Part two : Main question

1.Amount of capital: < 5000 5000-10000 10000- 20000 20000- 50000

2.The relationship of your job (occupation) with tourism: Direct Indirect No relation

3. Is there seasonal fluctuation in your income that affect your business? Yes No

If your answer for question number 3 is yes, how much is its seasonality problem?

Very high high average low very low

4. How many is the profit of your business annually?

Unknown No profit 2000-10,000 10,000-50,000

5.Is tourism important for running your business?Yes No

6.Is there any open opportunity for your organization to participate in investment and tourism
development in Hawassa? Yes No

7. Does tourism bring economic benefits to the local community of Hawassa?Yes No

8. Is tourism benefiting the poor? Yes No

Please give justification for your answer…………………........................

9. Which do you think is the most effective way in increasing the positive impact of tourism for
economic development?

Reducing entrance fee Easy of accessibility providing good guiding service

10.Rank the economic impact related questions.

Economic impacts of related questions Very low Average High Very high

40
 low

A. Employment opportunity due to tourism in

Hawassa town.

B. Contributin of tourism for income

improvement

C. rising living cost ) of Hawassatown.The

influence of tourists in inflation (

D. The role of tourism to eradicate extreme

poverty and hunger in Hawassa.

41
 ARBAMINCH UNIVERSITY

COLLEGE OF BUSINESS AND ECONOMICS

DEPARTMENT OF TOURISM AMD HOTEL MANAGEMENT

Dear respondent, the purpose of this questionnaire is to collect data for the research entitled
economic contribution of tourism development in Hawassatown for the requirement of partial
fulfillment for ( BA) degree in tourism management in Arbaminch university, your genuine
response for the following question is extremely important for the successful completion of this
paper and the information you provide will be used for academic purpose and will be kept
confidentially.

Thanks in advance!

Instructions:

No need to write your name

Use(√) in the box provided

Write your answer for open ended space provided

B. Questionnaire to be fill by Tourists

1. Age:15-30 30- 50 50 and above

2. Sex:male female

3.Education level: Certificate diploma degree masters

4. Purpose of visiting: pilgrimage recreation research to learn culture.

5.For how long will you stay in Hawassa?

42
One night two night three night Four night

ee night Four night

6. How much is your average daily expense?

Around400 birr or less 400- 800 birr 800 -1200 1200 -1500

7. How do you evaluate the service facilities here in Hawassa?

Very poor poor Average Good Very good

8. How are the prices of facilities and services in Hawassa compare to their quality?

Very high high average low very low

43
 ARBAMINCH UNIVERSITY

COLLEGE OF BUSINESS AND ECONOMICS

DEPARTMENT OF TOURISM AMD HOTEL MANAGEMENT

Dear respondent, the purpose of this questionnaire is to collect data for the research entitled
economic contribution of tourism development in Hawassatown for the requirement of partial
fulfillment for ( BA) degree in tourism management in Arbaminch university, your genuine
response for the following question is extremely important for the successful completion of this
paper and the information you provide will be used for academic purpose and will be kept
confidentially.

Thanks in advance!

Instructions:

No need to write your name

Use (√) in the box provided

Write your answer for open ended space provided

Questionnaire to be fill by professionals (Cultural Tourism Office)

1. Age: 18- 30 30 -50 50 and above

2. Sex :male female
3. Education : certificate diploma degree master
4. Marital status: single married divorced
5. How do you evaluate the current condition of the tourism development in Hawassa?

It is currently developed industry it is a developing industry

It is a poor developed industry I have no answer

6. Do you think that a local community in Hawassa is benefiting well from tourism industry
relate to its potential?Yes No

44
7. What are the measures that should be taken to increase the contribution of tourism
development for the local economy and minimize the obstacles…………………………………..

8. From your point of view, what the role of stakeholders, such as local community, private
industry, the local g4.6.

Interview

1. What do you think are the main positive and negative economic impact in Hawassa?

2. In your opinion, what are developmental opportunities of tourism for the local economic
in Hawassa town
3. How do you compare the potential and actual level of tourism development in Hawassa?

45