Ngorongoro Conservation Area Authority Tourism Essay

Ngorongoro Conservation Area Authority Tourism Essay The study focuses on the role of promotion in tourism, the case study of Ngorongoro Conservation Area Authority in the northern tourist circuit of Tanzania. Despite of the wealth Ngorongoro Conservation Area has in terms of diverse natural resources, topographical, social-cultural attractions and other potentials, it receives relative less number of tourists. Tourists wealth of Ngorongoro Conservation Area remains insufficiently tapped because of among other reasons is due to inadequate effective and efficiency tourism promotional strategies and limited budget for promotion. The study has four objectives which were to identify and assess the use of different promotion strategies used by Ngorongoro Conservation Area Authority to increase its market share, to access issues and challenges of applying different promotion strategies used by Ngorongoro Conservation Area Authority and to recommend ways in which promotion strategies can be improved. The study applied triangulation approach whereby a number of methods were used in data collection including literature search, interview, observation, focused group discussion and questionnaires while descriptive statistics were used in data analysis. Data were presented in tables,, graphs and figures. The results showed that NCA is still receiving a lesser amount of tourists compared to its compared to its competitors. NCAA has not put enough efforts in advertising NCA worldwide and the kind of promotion strategies used are not adequate and not abiding to the everyday changing technology. The study recommended that Tourism promotion requires a well comprehensive marketing strategy to be developed and implemented by both the government and private agents. This should be supported by regular coordinated efforts to allow them to discuss about tourism promotion for Ngorongoro Conservation Area tourism destination. CHAPTER ONE: INTRODUCTION 1.1 Background Information According to WTO (2005), tourism is the largest and fastest growing industry in the world. In developing countries mostly in Africa tourism is said to depend most on natural resources as key attractions (Bonavides, 2001). From 1990 to 1998 tourism visits to the developing countries grew twice as fast annually as worldwide tourism ( 9.5% per year compared to 4.6% per year) and in the year 2002, it had grown to more than 30% of total tourist visits (Ashley, 2002). By the year 1998 tourism was among the five leading export sectors in two thirds of the worlds 49 least developed countries to include Tanzania (Bonavides, 2001). According to the national economic survey, in 2009, a total of 647,193 tourists visited National Parks, whereby 533,655 tourists were foreigners and 113,538 were locals. Earnings from tourists who visited the National Parks were Tshs. 67.3 billion. In addition, a total of 438,179 tourists visited Ngorongoro Conservation Authority, of which 234,767 were foreigners an d 203,412 were locals. Earnings from tourists who visited Ngorongoro were Tshs. 34.7 billion. (http//:www.tanzania.go.tz/economicsurvey.html). According to the study done by Rusumo in the year 2005 tourism contributed 17% of the national Gross Domestic Product and 25% of the countrys foreign earnings. In 2009, receipts from wildlife sub-sector increased to Tshs 23,575.7 million from Tshs. 18,387.4 million in 2008, equivalent to an increase of 22 percent. This situation was a result of an increase in activities of tourism such as photographic sceneries, wild animal hunting and licensing of trophy business (ibid). However, tourism sector was expected to attract over one million tourists by the year 2010. Tanzania is one of the largest countries in Africa. The countrys tourism potential ranges from her wildlife resources, a spectacular landscape and scenery, water bodies and beaches, a diversity of cultures and numerous archaeological sites. Tourism has become a competitive business. For tourism sector, competitive advantage is no longer natural, but increasingly man-made driven by science, technology, information and innovation. As such, it is not simply the stock of natural resources of Tanzania that will determine her competitiveness in tourism, but rather, how these resources are managed and to what extent they are complemented with man-made innovations. Although the Tanzanian government has identified tourism as a potential sector for expansion, availing of the countrys natural amenities and wildlife resources and targeting the relatively high end of the market, it has not been able to realize its full potential in tourism. As such, the contribution of tourism to employment, small business development, income and foreign exchange earnings remains inadequate. According to Economic and Social Research Foundation report of 2009, tourism sector had an average growth rate of 10% per year. From 1990 to 1999 tourist arrivals and foreign exchange earnings from tourism increased by an average annual rate of 15.15% and 27.41% respectively but since 2000, tourists arrival and foreign exchange earnings have been stagnating at average annual growth rates of 1.49% (arrivals) and 0.09% (earnings). According to Lickorish and Jenkins (1997) promotion is a vital marketing tool in tourism sector due to the nature of the sector where by it is a demand and market led business, consumer is regarded as a king, it is embracing a wide range of components and services with a larger range of related services and tourist attractions. Promotion is the most visible of the four principles of marketing in tourism business, it is used to manage demand, make prospective customers aware of the products, whet their appetites, stimulate demands and provide information that help customers to make decisions. It generally provides incentives to purchase, increase sales volume and resulting to more profits by increasing the national Gross Domestic Product (GDP) (Middleton, 1994). Promotion shall be viewed as one of the critical means to acquire, maintain and boost organizations market share in tourism sector worldwide and ensure its survival. In modern society promotion has become an important part of the social economic systems. It has evolved into vital communication systems that overwhelm and influence business. As a communication system promotion has developed further as a result of information technology that dominated business. In competitive business environments and free market based economies, promotion is one of the useful favored tools to win the market and hence success in business. In this modern world of high technology effective and viable promotion can be achieved through the use of different methods and tactics of promotion and the use of information technology. With advanced technology which the world is currently experiencing, effective and viable promotion can be achieved through the use of different method and tactics of promotion and use of information technology so as to attract distant tourists. The strength of the Tanzanian tourist product is dominated by the natural assets which mirror the clients motivations for visiting the country. The main strength includes; abundance, diversity, reliability and visibility of wildlife, unspoiled environment and beautiful scenery, safe destination as well as rich African culture and friendly people. All these make Tanzania one of the unique destinations in the African Continent that has yet to be discovered by many. One of the leading tourist destinations in Tanzania is Ngorongoro Conservation Area (NCA) as shown in see table 1.1 NCA is endowed with diverse and plenty of tourist attractions including the Volcanic Craters such as Ngorongoro, Empakaani, Olmoti and Oldonyo Lengai Creaters (Ngorongor o being a wonder of the Natural World. There are also other attractions to mention few are Nasera Roxck, Shifting Sand and Olkarien Gorge as well as wildlife, vegetation and rich indigenous culture. Despite the above mentioned attractions NCA receives a relatively low volume of tourist and revenue one can argue that NCA has not put into effect enough efforts to promote its tourist attractions. Currently the major tourism promotion strategies used are Advertisement, Public Relations (publicity) and Brochures and other printed materials Table. 1.1 Tourists visited Ngorongoro Conservation Authority and Earnings for January December 2009 Month Foreigners Locals Total Revenue (Tshs) January 19,176 18,462 37,638 3,184,363,880.10 February 23,628 17,239 40,867 3,601,413,146.50 March 14,072 14,463 28,535 3,162,927,138.70 April 10,271 12,239 22,510 1,289,337,307.95 May 8,714 12,062 20,776 1,332,029,171.80 June 16,075 15,940 32,015 2,456,883,262.00 July 31,908 21,786 53,694 4,231,731,129.51 August 32,995 22,030 55,025 4,289,879,099.00 September 19,916 17,224 37,140 3,024,501,009.97 October 21,916 17,392 39,308 3,045,013,094.00 November 14,703 14,229 28,932 2,240,074,238.15 December 21,393 20,346 41,739 2,883,440,244.21 Total 234,767 203,412 438,179 34,741,592,721.89 Source: Ngorongoro Conservation Area, (2009) Previously tourism was not given due attention in the country. It is argued that the country has not exhaustively promoted her tourist products, the situation that has led Tanzania to receive less number of tourists compared to her competitors such as Kenya, South Africa and other Asian countries (Thomassen et al, 2005). In this respect, tourism wealth of the country is not totally tapped because of the inadequate tourism promotional efforts among other reasons. While that is the case, today the business environment has changed into free market based economy coupled with very stiff competition and high technology worldwide. This situation requires organizations in the business to undertake promotion of their products and/or services in order to acquire a substantial market share. 1.2 Problem Statement Being relatively labour intensive (providing jobs to over 300,000 people) implies that tourisms growth will benefit more people and in the long-run there will be substantial reduction in poverty countrywide. Tanzania has a comparative and competitive advantage in the sector due to the unspoiled natural endowments (in the form of unspoiled fauna and flora, beautiful natural sceneries and landscapes, coral reef and marine life, and a nearly pristine coastline) for attracting travelers, not forgetting a supportive government that recognizes private sector leadership in operating the tourist industry. Yet, the sector could expand more if it will be able to attract more tourists through the proper marketing mix (price, product, promotion and place) with an emphasis in Promotion since the other three Ps are well managed/ natural advantageous. With the expected rise of contribution of Tourism to Gross Domestic Product (GDP) from 9% (Tshs 2,399.3 billion) in 2009 to 9.2% (Tshs 6,052.7 billion) by 2019; Ministry of Natural Recourses and Tourism (MNRT) together with different Tourist organizations (Ngorongoro Area Conservation) needs to put and implement purposively efforts to see the target is achieved to be one hundred percent and over and above. Ngorongoro Conservation Area Authority (NCAA) as one of the giant tourism organization in the country has embarked on promotion of her tourist product in order to create, maintain and boost its market share hence increasing income both at organization level and national level. However, despite the existing strategies NAC receives less number of tourists compared to its competitors such as Maasai Mara- Kenya, Kruger National Park and other protected areas in Africa. The strategically natural placement of NAC at the northern circuit can persuade the vast tourists who visit northern tourist circuit (Serengeti, Lake Manyara and Tarangire National Parks). It is suspected that the growth of tourism at NAC remains insufficiently tapped because of inadequate effective and efficient tourism promotional strategies. The study therefore aims at assessing the extent the tourism promotion strategies can contribute to the growth of the sector, using the case of Ngorongoro Conservation Area in Arusha region. Moreover most previously conducted researches such as those done by Gwamagobe in 2004 and Mbuya in 2000 suggested on undertaking more research focusing on the impact of promotion in the tourism sector but little has been done to date. The study is therefore aimed at assessing the contribution of tourism promotion strategies towards the improvement of tourism sector in the country with reference to NCA bearing in mind that tourism in the country is dominated by natural resources especially wildlife of which NCA is one of the top destinations. Hence the focus of the study is to find out the contribution of promotion in tourism industry. 1.3 Research Objectives 1. 3.1 General Objective The general objective of the study was to assess the contribution of tourism promotional strategies in improving the tourism sector in Tanzania 1.3.2 Specific objectives To identify different promotional strategies used by NCAA to increase the number of tourists, To assess the relationship between an increase in concentration of different promotion strategies used by NCAA to increase the number of tourists To identify the challenges faced by NCAA in applying the identified promotional strategies. To recommend ways in which tourism promotional strategies can be improved 1.4 Research Questions The study questions were based on the research specific objectives: What are the different promotional strategies used by NCAA to market its tourism products, What is the relationship between an increase in concentration of different promotion strategies and increase in number of tourists in the past five years? What are the challenges faced by NCAA in applying the identified promotional strategies. 1.5 Significance of the Study The end product of the study is expected to add value to the following: The study can be used by NCAA to realize the most suitable promotional strategy that can be used to improve its market share The findings from the study can be used by other agencies as well as the ministry to identify the gaps on the existing promotional practices for the purpose of attaining best value market share and to improve their competitive performance and strategic advantage The findings may also be used by the tourism partners in changing their perception on their promotion strategy management. This will also help to enrich the body of knowledge, and may be used as a reference by students / professionals /company executives in the field of tourism. Since the study is part of the researchers academic course, it will enable the researcher to qualify for the award of Master Degree in Business Administration. 1.6 Rationale of the Study Tanzania is among the countries with many tourist attractions and tourism is the major source of foreign exchange earnings. However, this is not the case; Tanzania is not getting as many tourists as expected. This could be attributed lack of adequate promotion for touristic activities. Subsequently this study aimed at assessing the promotional strategies that may enable NCAA as well as the country to attract more tourists so that we promote the tourism sector. 1.7 Scope of the Study The study was conducted in NCAA and covered all departments and sections which are directly or indirectly dealing with promotion. The research l however consulted other tourism stake holders organizations like TANAPA (Tanzania National Park), TTB (Tanzania Tourist Board) and TATO (Tanzania Association of Tours Operators). The study was conducted for a period of 8 weeks. Secondary data covered a period of five years that is from the year 2007 to 2011. 1.8 Limitations of the Study With Government organizations/ Authorities red tapped procedures was difficult to access some of the confidential information Financial constraint; financial resources available are not enough to explore all possible sources of information, hence the study was conducted only in one organization. However , the results can be generalized in other touristic destinations in Tanzania The time for the study was not enough to carry out intensive and extensive study.