Assessing the Contribution of Inflow of Foreign Direct Investment (FDI) in the Creation of Employment Opportunities to the People in Zanzibar: A Case of Tourism Sector

Abstract

The main objective of this study is assessing the contribution of inflow of Foreign Direct Investment (FDI) in the creation of employment opportunities to the people in Zanzibar: Tourism sector being a case study. The methods used in the study was descriptive case study design, where by questionnaires were distributed to the 50 respondents, among them were people at Nungwi village, officials from Zanzibar Investment Promotion Agency (ZIPA) and managers from hotels in Zanzibar, also documentation and observation methods were used in the collection of data. The results show that 62% were benefited being employed in the tourism sector and their income have up for 60%, whereby before employment their income were lower for 80%. The report concludes that FDI inflow especially in the tourism sector has brought much positive impact in the creation of employment opportunities to the people in Zanzibar. In that case it is recommended that Revolutionary Government of Zanzibar should improve and promote policies guiding tourism sector investment in the country so as fully provide more employment opportunities and improve the countries’ economic development for the purposes of poverty reduction.