TANZANIA TOURISM SECTOR SURVEY - Bank of Tanzania

x. Tourist Expenditure EstimationTourist expenditure in the country was estimated using the Tourist ExpenditureModel that was developed during the comprehensive visitors’ exit surveyconducted in 2001. The model uses variables namely; average expenditure bytravel arrangement by purpose of visit, proportion of visitor by travel arrangement,average length of stay and number of tourist arrivals.The model is depicted in the following equation:Whereby:Ev = Total tourist expenditure in Tanzania;EP = Average package tour expenditure per visitor per night, derived from thesurvey;ENP = Average non-package tour expenditure per visitor per night, derived fromthe survey;VP = Number of arrivals under the package travel arrangement (The arrivals ascaptured by the Immigration Department, adjusted into package visitors bypurpose using survey results);VNP = Number of arrivals under the Non-package travel arrangement (The arrivalsas captured by the Immigration Department, proportionately adjusted intonon-package visitors using survey patterns);T = Average length of stay as computed from the survey.The Simplified ModelCountry ofResidencePurpose of VisitBusinessHolidayVFRTotal Visitors (sourcedfrom Immigration Dept)Visitors by travelPackage(VP )arrangementNonpackage(V NP )Avg. length ofstayAvg. expenditure pervisitor per nightPackageNon PackageTotalexpenditure (EV)(T) (E P ) (E NP ) (E V)Procedure and Assumptions Used for the Estimation of Tourist Expenditurefor 2008;oCalculation of average package tour expenditure involved deduction of estimatedcost for international fare to Tanzania and commission accruing to a tourwholesaler. Information on the cost of international transport from the sourcemarkets was updated using the current information gathered from internationalcarriers that bring visitors to Tanzania.31