Economic impact of tourism on small-scale tourism enterprises in Hawassa City, Southern Ethiopia

Economic impact of tourism on small-scale tourism enterprises in Hawassa City, Southern Ethiopia

Developing countries recognize tourism as a tool to promote economic development. Many destinations devise mechanisms of boosting the economic returns of tourism among which enhancing linkages between tourism and small-scale tourism enterprises is one to improve tourism’s economic contributions. This study examines the economic impacts of tourism on small-scale tourism enterprises in Hawassa city. A mixed research approach with descriptive design is employed to execute research objectives. Interview and focus group discussions plus survey are instruments of data collection. Survey respondents were selected randomly while interview participants and focus group discussants were recruited purposefully. SPSS version 20 is employed to analyze survey data while qualitative data are analyzed through content analysis. Findings reveal that tourism brings both positive and negative economic impacts on SSTEs in terms of creating income and employment and negative impacts through encouraging dependence and seasonal employment. However, research outcomes unfold that positive economic impacts outweigh negative repercussions. Possible ways of maximizing positive economic impacts while minimizing tourism associated costs and challenges are suggested. Limitations and future research directions are also discussed.