Empirical Analysis Of Factors Affecting International Competitiveness Of Zambia's Tourism Industry

Zambia's tourism industry has been developing noticeably for the last decade and it has become one of the major potential options for economy growth and diversification.However there are still challenges leading to poor international competitiveness of the industry.This research was undertaken in order to empirically analyze factors affecting international competitiveness of the tourism industry in Zambia,and to provide a recommendation on how the industry can improve its international competitiveness.The study has revealed a good overview of Zambia's tourism industry development,highlighting major tourist attractions and investment opportunities available in tourism.The study used Trade Specialization Coefficient(TSC)as a measure of Tourism Industry Competitiveness in Zambia,further carried out an Empirical Analysis using econometric variables selected based on Porters Diamond Model of competitiveness.Using a Principal Component Analysis and Multiple Linear Regression Analysis,the study found that 78.3% of the International Competitiveness of Zambia's Tourism Industry can be explained by the identified variables in this study.This study suggests that the quadrants of international competitiveness should go hand in hand with policies opening up investment opportunities provided by modern information and telecommunications,which will make it easy to address international behavior of tourists through promotions using networks,media and other communication systems.This will help government and other businesses to set baseline for measuring targets,review progress and report towards the achievement of international competitiveness of the tourism industry in Zambia.