The Challenges Facing Small and Medium Size Hotels in Tanzania: A Case of Dar es Salaam Region

Tibaijuka, Anthony K. (2014) The Challenges Facing Small and Medium Size Hotels in Tanzania: A Case of Dar es Salaam Region. Masters thesis, The Open University of Tanzania.

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Abstract

This study sought to identify the challenges that are critical for success and failure in SMHs in Tanzania. To achieve the objectives of the study, data was collected from 09 small and medium hotels in Dar es Salaam, from which 27 respondents were selected. Exploratory research design was opted in this study because the researcher intended to gather information about a few number of people and also in order to get better understanding of a situation. The study found out that the main challenges are mostly attributed to inadequacy financial resources, lack of capital and support, low level of education, marketing strategy, lack of hotels business managerial skills, poor technology and lack of trained staff and budgetary resources. There is a challenge of obtaining the modern technology and information about the market and customers’ desire due to the absence of marketing networks that could provide the hotel with the necessary information regarding the market needs. In the lack of supervision over the quality of inputs and the products (services), SME’s aren't able to obtain a relatively competitive edge in the national markets and accordingly in international ones. The study recommends that education and training are crucial to SMH since they play a big role in the success of the business. Moreover, SMH require organization’s mission, vision, values and strategic plans. It is concluded that hotel operators should take responsibility for delivery on service quality and business performance.

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