ENTER2017 eTourism Conference presentation

1. ENTER 2017 PhD workshop Slide Number 1
ICTs ADOPTION, USE, AND PERFORMANCE: A CASE STUDY OF
TANZANIA TOURISM BUSINESS
Thereza I Mugobi
Open University of Tanzania
tmugobi@gmail.com
http://www.out.ac.tz/

2. ENTER 2017 PhD workshop Slide Number 2
Geographical location
Tanzania is located at the edge of
Africa continent
Largest country in East Africa with
Area size 947,300 km2
 1424 km is coastline
 Borders Kenya and Uganda to the
north, Rwanda, Burundi, and the to
the west, and Zambia, Malawi and
Mozambique to the south
 Tanzania is facing the Indian Ocean.
 The weather and climate leaves
everything to be desired
Background Information

3. ENTER 2017 PhD workshop Slide Number 3
Tourism industry in TanzaniaTourism industry in Tanzania
Tourism has become the second generator of the
country economy
Contributed 14% of the country GDP with an
earning of USD 1.7 billion in 2015 from one
million visitors
Tanzania is one of the most growing tourism
destinations in the world with a growth rate of
approximately 30% per annum in tourism
In 2014 Tanzania generated TZS3,365.3bn
in visitor exports
Tanzania: Direct Contribution of Travel & Tourism To GDP
Tanzania: Visitor Exports and International Tourist Arrivals

4. ENTER 2017 PhD workshop Slide Number 4
Problem StatementProblem Statement
Despite the important of ICTs in Tourism business performance,
Tanzania tourism business have historically been rather slow to adopt ICTs. The
destination still exists without a regionally embedded electronic marketing system,
There are poor ICTs investment in tourism business.
Despite exponential growth of tourism in terms of GDP, EXPORT
earnings and visitor numbers, Tanzania still trails other continents in
terms of tourist arrivals and receipts. For example according to the
UNWTO, Africa had a market share of only 5% of the international
tourist arrivals in the year 2015.

5. ENTER 2017 PhD workshop Slide Number 5
Aims and Objective
There is seldom sufficient local content to draw conclusions about the Tanzania
readiness toward electronic services. Therefore, this paper will propose an empirical
approach “E-BUSINESS INTENSITY–READINESS–IMPACT FRAMEWORK” which
indicate how application of ICTs is determined by contextual adaption factors and
how will it affect tourism business performance

6. ENTER 2017 PhD workshop Slide Number 6
Research questions
1. What are the indicator of e-business readiness that reflect the tourism business potential
2. What are the e-business -intensity indicators and nature of the electronic business transaction
3. What are the impact indicators that focus on multiplier effects of e-business,

7. ENTER 2017 PhD workshop Slide Number 7
Literature review
ICTs and Tourism Business
Performance
Literature review
ICTs and Tourism Business
Performance
The increased use of ICT in tourism business leads to a substitution
of ICT equipment for other forms of capital and labour and may
generate substantial returns for enterprises that invest in ICT and
restructure their organisation. However, this may not be applicable
to generalisation that total factor productivity in the whole
economy will increase.
Investment in ICT is an important determinant of market
expansion, the use of ICTs in the transaction process can
foster input and output market expansion. However,
investment in ICTs in their study did not have any
significant impact on enterprise return and export
performance and has even a negative impact on labour
productivity

8. ENTER 2017 PhD workshop Slide Number 8
Concept DevelopmentConcept Development
Figure 2. E-Business Intensity–Readiness–Impact Framework
Source: Adapted from figure 1 in “E-Business Readiness, Intensity, and Impact: An
Austrian Destination Management Organization Study “e-business indicator
Framework (Fuchs. 2010) P.168.

9. ENTER 2017 PhD workshop Slide Number 9
e-business readiness
indicators that reflect the tourism business potential:
organizational context items, the aspect of ICT infrastructure will be
measured by the manager’s perception on how strongly organization
processes are supported by ICTs.
ICT skills are measured by tourism business managers and employees
to find out their computer competencies and experiences
e-business intensity
indicators would give information on the size, growth
and nature of the electronic business transaction
e-business impact
indicators would focus on the additionality and multiplier
effects of e-business, the impact on production process and
business model, on the workplace and more generally on
society.
Impact on sales will be measured though increase in revenues. While
the impact on the tourism business quality will be measured through
improvement of the relationship to business partners and suppliers

10. ENTER 2017 PhD workshop Slide Number 10
Proposed MethodologyProposed Methodology
Exploratory research design will be employed by way of focusing
groups.
The questionnaire will be shaped specifically to identify what CEO,
managing directors, owners and employees from tourism business
understand by e-business, to identify factors triggering or impeding its
adoption, to identify time taken to consider whether to adopt e-business,
and to identify the benefits from, or expected from, and difficulties
associated with e-business.
Two hundred tourism stakeholders will be surveyed and random sampling will be
used to select the respondent from tourism business located in the top five most
visited destinations in Tanzania (Dar Sa Salaam, Arusha, Kilimanajro, Mwanza and
Zanzibar).
To ensure that the study instrument elicited appropriate, meaningful, and useful data,
the questionnaire will be validated by various experts who read, commented, and
sometimes conducted face-to-face discussions

11. ENTER 2017 PhD workshop Slide Number 11
Data gathered will be analyzed using the Statistical Package for the Social
Sciences (SPSS 20.0)
To test for a path model presented in figure 2, a structural equation modeling
(SEM) approach will be used based on data gathered from the tourism business
stakeholder
SEM is designed to assess the readiness indicators according to Fuchs (2010) “E-
Business measurement indicators”.
Anticipated Results
This study aims to statistically explain usage intensities of various ICTs
applications to Tanzania Tourism business. In terms of contributions, we
intend to apply an empirical approach that show how infrastructural,
organizational, and environmental factors determines both e-business
adoption. As far as we know, e-business applications may positively affect
the performance of tourism business in Tanzania.

12. ENTER 2017 PhD workshop Slide Number 12
• STAGE
• Still at initial stage: expecting to defend the proposal this March
• CHALLENGES
• Access to online journal: Open University has not invested in buying of online material
• Framework were adopted from An Austrian Destination Management Organization..
Will it be applicable to Tanzania as well?
• By looking on tourism industry in Tanzania, every organization work as a separate entity
how will my proposed study bring together all of the actors
• By looking on willingness to invest in ICT, this is still a challenge to most Tanzania
tourism business, how will my work pursued them to invest and value ICT application in
their organization
Financial constrains:
Access online material
Conduct pilot study
Conduct the whole research

13. ENTER 2017 PhD workshop Slide Number 13
Feedback I would like to receive
• Proxies of the proposed Framework
• Proxies of the proposed Methodology
• Proxies of the research questions
• Proxies of research in general