Economic impacts of tourism on small-scale tourism enterprises (SSTEs) in Hawassa City, Southern Ethiopia

Abstract

ABSTRACT Developing countries recognize tourism as a tool to promote economic development. Many destinations devise mechanisms of boosting the economic returns of tourism among which strengthening linkages between tourism and SSTEs can be mentioned. This study examines the economic impacts of tourism on SSTEs in Hawassa City. A mixed research approach with a descriptive design is employed to address 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 24 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. However, positive economic impacts outweigh negative repercussions. The research concludes by suggesting possible ways of unleashing tourism’s positive economic impact while minimizing its costs. Limitations and opportunities for future research are also discussed.