BACKGROUND TO PROBLEM Sample Clauses

BACKGROUND TO PROBLEM. As globalization of markets is going on around the world, the reduction of trade barriers and the development of information technology have contributed significantly to the internationalization of service industries (Knight 1999, Xxxxxxx and White 2002). In today`s world, the travel and tourism industry is among the world‟s largest, key economic sectors, growing faster and predicted in the future to be one of the top super service industries apart from telecommunications and information technology (Xxxxx 2001). In Tanzania the tourism sector is important and contributes a major part of the economy, where the tourism business makes up 17.2 percent of GDP and directly employs about 300,000 people with an average growth rate of 20 percent per year (Shame 2008). Tanzania‟s inbound tourism market is diverse, with visitors coming from all over the world. Arrivals from Europe and America are dominating the market, particularly the United States, the United Kingdom and other European countries. In 2007, the number of visitor arrivals in Tanzania reached 719,013 (Tourism Statistical Bulletin 2008). Intense competition forces companies to integrate SC to lower costs, improve quality of service, satisfy end customers, and increase the firm‟s profitability and competitiveness (Xxxxxxx 1996, Xxxxxx 2004). Tour operators play an important role in promoting safari packages, beach packages, and other Tanzania tour packages. The Tour operators distribute packages either directly to travellers or indirectly through travel agents locally or internationally and facilitate information exchange on prices, special promotions, facilities and services in tourism SC (Tepelus 2005). Generally, tour operators can influence the tourists` choice of destination, the strategies of SC partners and the development plans of destinations. Also, tour operators can add more value to satisfy travellers. Tour operators have a strong incentive to influence, plan, control, and support quality development and the customization of their tour package to individuals and groups of travellers according to their needs and wants (Xxxxxxx et al. 2005).
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