Spatial analysis of small hotel activity in Tanzania

Purpose - The purpose of this paper is to evaluate whether there were significant differences in the factors affecting economic contribution and performance of small hotel clusters in the three regions of Arusha, Dar es Salaam, and Mwanza in Tanzania. This paper also assesses whether there were significant differences in developmental policies, and industry and competitive environments of small hotel activity in these three regions. Design/methodology/approach - In the paper data were collected using a novel method of educational workshops held in the three regions. Three short questionnaires were used in the paper to gather data on demographic information of participants and businesses, business environment, and economic transactions of these businesses. Findings - The paper finds that statistical analyses indicate that factors including development policies, competitive and business environment are significantly different among the three regions. Research limitations/implications - This paper presented a framework within which policy and industry practices could be comparatively benchmarked amongst multiple locations. Continued future research is essential to contribute towards the dearth of literature formally assessing small hotel activity in developing economies. Practical implications - The results of this paper could be used to evaluate industry practices as comparative benchmarks across regions. Policy makers in Tanzania can use the data provided to close gaps in services provided to support the three regions. This could lead to a more balanced development of small hotels across the country. Originality/value - This paper adds to the sparse literature on small hospitality business research, comparative spatial analysis within the hospitality industry, and offers an insight into factors affecting operations of small hospitality businesses in developing nations. The paper also introduces the usage of novel data collection methods from small businesses that are otherwise inaccessible to such research studies. The paper found this data collection method mutually beneficial for both the participants and the researchers.