The Potential Impact of Domestic Tourism on Rwanda’s Tourism Economy

Abstract

As a continuously growing industry worldwide, tourism has often demonstrated its role as a vital tool in the advancement of economies through direct domestic and foreign exchange earnings and through the employment and investment opportunities it can generate. African countries, mainly in sub-Saharan Africa, often over-reliant on one or two sectors for economic development, have recognised the potential of the tourism industry to diversify local economies and contribute to poverty alleviation, economic regeneration and stability, affording many Africans the opportunity to participate in and benefit from tourism. The participation of local populations in Africa’s tourism industries, however, is often limited to employment opportunities. Travel by local tourists is often overlooked by members of the tourism industry, and is often considered a luxury by many in the local population. The role of domestic tourism and its importance for the creation of a sustainable tourism industry has been widely acknowledged, but limited writings on the subject exist and few tourism policies include domestic tourism, neglecting its potential. The emergence of a new African middle-class, equipped with more of a disposable income and influenced by Western lifestyles, has proven that such potential does in fact exist. Those living in Africa as well as members of the Diaspora have shown more of an interest in leisure travel and represent a new tourism market. Globally, the impact of domestic tourism has been shown to have had a great impact on the tourism economies of several countries, demonstrating that African countries can only serve to benefit from participating in domestic tourism. This research report provides a case study of Rwanda, an African country emerging from war and devastation, aiming to rebuild itself economically, socially and politically. The country has chosen tourism as one of its main economic drivers for poverty reduction and economic development. While the industry is succeeding, an over-reliance on international visitors in such a volatile region threatens the sustainability of the industry. The development of a domestic tourism industry, as has been demonstrated in other countries, offers the opportunity to generate a more diverse and economically sustainable domestic tourism industry. This research focuses on the potential impact of such a domestic tourism industry on Rwanda’s tourism economy and as a result, on the country’s economy as a whole.