CIRCULAR MIGRATION AND TOURISM ENTREPRENEURIALSHIP IN
TANZANIA: A CASE STUDY OF DAR ES SALAAM AND KILWA
Dr. George F. Masanja
Department of Geography
St. Augustine University of Tanzania
P. O. Box 307, Mwanza, Tanzania
Email: grgmasanja@yahoo.co.uk
ABSTRACT
This paper explores circular migrants’ skills,
remittances and investments and tourism
entrepreneurialship, drawing on data of 324
respondents out of which 113 are circular
migrants from Tanzania. The paper reviews
existing evidence on the role of circular
migrants and the diaspora in promoting
development in Sub-Saharan Africa, before
computing odds ratios to binary data that
influence
whether
circular
migrants
contribute to tourism entrepreneurialship.
Factors tested for their association with
tourism entrepreneurialship include a range
of individual characteristics, reasons for
visiting regularly, and the acquisition of
financial, human and social capital while
abroad. The analysis suggests that exposure,
work experience abroad, remittance and
regular visits are the most significant
predictors of tourism entrepreneurial
ventures among the circular migrants and the
diaspora in Tanzania.
1.0
INTRODUCTION
From the 1980s, African international
migration has been viewed as an important
resource for development in African
countries in terms of the Diaspora and
remittances. Yet, there is no unanimity on
evidence and conclusions drawn from the
existing previous literature, and more work
is still required on the Diaspora migrationdevelopment linkages. With the emergence
of Poverty Reduction Strategy Papers
(PRSPs) in the 1990s and the Millennium
Development Goals (MDGs) for 2000, a
growth interest has focused on the linkages
between Diaspora (as a distinctive aspect of
migration),
remittances
and
poverty
reduction in Africa.
Over the past decade, there has been both
significant growth in the world economy,
and progress in terms of the economic
development of poorer nations, and the fight
against poverty. Indeed, recent reviews of
progress towards the UN’s ‘Millennium
Development Goals’ (MDGs) in some
respects have painted a remarkably positive
picture, particularly associated with rapid
economic growth in China and India (Sachs
2005). Yet one region in particular stands
out as problematic in terms of the MDGs –
that of Sub-Saharan Africa. Sub-Saharan
Africa is alone among world regions in that
by 2004, it had either made no progress, or
was lagging on all 20 targets against which
progress towards the MDGs is measured
(United Nations 2004).
As with people the world over, Tanzanian
migrants remain tied to their home country.
Some return as tourists; others plan to retire
as soon as they have “made it”; many,
motivated by kinship obligations, remit cash
and kind. Remittance payments have been
important sources of income for many
households in the country. These cash
receipts are used mainly to purchase food
and consumer durables and to improve living
conditions. Both remittances and circular
migration have been beneficial to
individuals, improving living conditions,
sources of income, and in investments.
However, there still looms a great debate as
to whether remittances and foreign savings
aid and abet development despite personal
benefits to migrants and their households.
Likewise, despite the volume of resources
flowing to developing countries, many
people believe that they have yet to realize
their full development potential. Because
remittances tend to flow directly to family
members and households in developing
countries, and because they are generally
used for consumption rather than investment
or savings, many believe that their impact on
communities is limited.
This paper therefore seeks to examine
whether or not circular migrants including
the African Diaspora and their remittances
do leverage development in African
countries. Tanzania’s circular migrants’
tourism entrepreneurial ventures have not
been systematically investigated. The
specific objective of this study was to assess
the association of circular migrants’
remittances, and skills and tourism
entrepreneurial establishments in the coastal
zone of tourism with Dar es Salaam and
Kilwa as study sites.
The paper is organised into four sections.
First, it provides a typology of migration
flows and definition of migration concepts.
In the second section, consideration is given
to emigration as a source of data for circular
migration in Tanzania and its potential links
to small tourism business development.
Additional sub-sections include labour
migration, limitations of migration data in
Tanzania; Tanzania’s efforts and remittance
flows from and to Tanzania. Drawing on this
review and an empirical survey of circular
migrants to two Tanzanian cities –Dar es
Salaam and Kilwa – odds ratios were
caculated to estimate the association
between the propensity to establish a tourism
enterprise as a circular migrant and
background factors, focusing in particular on
the role of different kinds of capital transfer,
skills and regular visits to places of origin.
Although the analysis does not consider
whether such businesses were successful, or
contributed to development, the final section
suggests some tentative conclusions on how
the paper’s findings might be relevant to
‘migration and development’ policies.
A Typology of Migration Flows and
Definition of Migration Concepts
No generally accepted typology of migration
flows exists, but commonly, in the literature,
authors classify contemporary migration
flows in Sub-Saharan African temporal and
spatial dimensions. The temporal aspect of
migration relates both to the distance
traversed and the duration of residence at the
destination. In the temporal dimension, SubSaharan African migrations include seasonal
migration, short-term migration for a period
of two to five years and long-term or
permanent migrations. Spatially, migrations
may be rural to rural, rural to urban, urban to
rural, or urban to urban (Amselle 1976).
Others less common typology concerns
chain and group migration, which are
common in Sub-Saharan Africa. Chain
migration arise from the fact that migrants
rely on the network of social relations
(friends, relatives, town-folk) that provide
accommodation on arrival and assist in
securing employment. Unlike voluntary
migration, which derives mainly from
economic factors, the reasons for mass or
group migration within and across national
borders in Sub-Saharan Africa are
noneconomic, and are related to political and
religious factors, and sometimes, natural
disasters.
For the purposes of this paper, different
types of international migration are relevant.
These include labour (unskilled/semi-skilled,
highly
educated/skilled
professional
transients) and specific forms of tourismrelated migration such as labour migration,
return migration, entrepreneurial migration,
and retirement migration. In many
developing countries, the migration process
is predominantly circular, not permanent.
Migrants regularly return to their countries
and villages and retain their ties to land. The
distinction between circular migration and
return migration lies in the fact that circular
migrants return seasonally or temporarily
whereas return migrants’ return is more long
term or permanent (Thomas-Hope, 1985).
Diaspora on the other hand can be defined as
people who have migrated and their
descendents maintain a connection to their
homeland. The African Union, defines the
African diaspora as “consisting of people of
African origin living outside the continent,
irrespective of their citizenship and
nationality and who are willing to contribute
to the development of the continent and the
building of the African Union” (African
Union 2005). In this paper, circular migrants
and the diaspora are put into one basket
sharing a common characteristic of being
continuous migrants as opposed to return
migrants.
Emigration as a Source for Circular
Migration Data in Tanzania
Data on emigration in Tanzania is scarce.
Tanzania’s National Bureau of Statistics, for
instance, has no data at all on emigration
(Prinz 2005). Only estimates and data from
developed receiving countries, international
organizations and research entities are used
to overcome such gaps. Estimations
elaborated by the DRC of Sussex University
(Migration DRC, 2007) provide the most
recent data that can be used to approach the
number of Tanzanian emigrants by country
of destination. According to this data source,
there are 287,051 emigrants originating from
Tanzania worldwide representing 0.7 per
cent of the total population. The top ten
receiving countries, hosting 84,7 per cent
(243,131) of Tanzanian emigrants, are:
Uganda with 58,725 emigrants (20.5 per
cent) followed by South Africa with 52,554
emigrants (18.3 per cent), United Kingdom
with 32,943 emigrants (11.5 per cent),
Zimbabwe with 25,297 emigrants (8.8 per
cent), Canada with 19,960 emigrants (7.0 per
cent), Mozambique with 15,208 emigrants
(5.3 per cent), Malawi with 13,699
emigrants (4.8 per cent), United States of
America with 12,819 emigrants (4.5 per
cent), Germany with 7,587 emigrants (2.6
per cent) and Kenya with 4,339 emigrants
(1.5 per cent). Out of these ten countries, six
are within Africa and host 59.2% of
Tanzanian emigrants. The remaining 43,920
(25.3 per cent) of Tanzanian emigrants,
living out of the top ten countries, are
variably spread all over the world and
mostly in Africa.
Previous
estimations
of
Tanzanian
emigration compiled by Dilip Ratha and
Zhimei Xu as country profiles for the
Migration and Remittances Factbook of the
World Bank (2008) and referring to the year
2005 provided different figures. They
estimate the stock of emigrants from
Tanzania to 188,789 representing 0.5 per
cent of the population. According to the
same source, only four out of the top ten
destination
countries
for
Tanzanian
emigrants are within Africa. This shows that
migration data, even when available, is
subject to weaknesses related to the concepts
definitions and measurement and estimation
methods adopted by the data producer.
Moreover, even observed stock data derived
from censuses are subject to underestimation
especially for migration. Therefore, users
need to be fully aware of these weaknesses
when drawing conclusions from the data.
As for data comparison again, figures from
the Organization for Economic Cooperation
and Development (OECD) for the year 2008
show that more than 72,000 Tanzanian born
emigrants live in the OECD countries in
2008, of which 36,000 in UK, 19,765 in
Canada (2006), 9,686 in the USA and 3,357
in Australia (OECD 2010b). However, we
should notice that figures are not available
for all the receiving countries, especially in
Africa where 67.5 per cent of Tanzanian
emigrants reside.
Regarding other migration indicators,
Tanzania had an emigration rate of 0.8 per
cent for the period 2000-2002 as calculated
by the UNDP (2009) based on data from
Migration DRC (2007) and the population
prospects of the UN (2009). The major
continent of destination for migrants from
Tanzania, as calculated by the UNDP (2009)
based on data from Migration DRC (2007),
is Africa with 67.5 percent of emigrants.
This is actually the case for 72.7 per cent of
sub-Saharan emigrants who move over
national borders but remain within the
African continent. However, Tanzania's
share of total migrants’ stock in Africa is
only leveled at 1.21 per cent (UNDP 2009).
Europe comes at the second position as a
receiving continent for Tanzanians with 17.4
per cent of emigrants followed by North
America with 11.4 per cent for the period
2000-2002 (UNDP 2009). However,
Tanzanian emigrants represent less than 1
per cent in each of these two continents as a
share of their total immigrant stock.
Labour Migration
Few emigration outflows occurred during
the early postcolonial history consisted of
labour migration to mines in Zambia and
South Africa and people crossing to
neighbouring Kenya and Uganda in search
of either wage employment or land (Egerö,
1979).
Outside Africa, the stock of Tanzanian
migrants in OECD countries, aged 15 years
and above, is estimated to have reached
70,200 of which 40.7 per cent are highly
skilled (tertiary education level) (OECD,
2010a); one of the highest among African
emigrants in the OECD countries (24.5 per
cent for all Africa and 33.1 per cent for SubSaharan Africa). The emigration rate of the
tertiary educated among the total Tanzanian
population with higher education is, in the
contrary, lower and estimated at 15.6 per
cent. Nonetheless, it is still quite high
compared to other countries in the region, as
this percentage reached 12.2 per cent for
sub-Saharan Africa and 5.2 per cent for the
countries with medium human development.
Getting access to higher education is the
most important reason to migrate overseas
(de Bruijn et al. 2001). Brain drain of young
talent seems to constitute a great part of the
migration from Tanzania to Europe (IOM
2008b). As for the mobility of physicians,
we noticed that figures are subject to conflict
between sources as reported by the World
Bank in its as country profiles for the
Migration and Remittances Factbook
(2008). According to Docquier and
Bhargava (2006), 81 or 8.8 per cent of those
physicians trained in the country emigrated
and according to Clemens and Pettersson
(2006), the value are considerably higher:
1,356 or 51.8 per cent. This is quite
considerable discrepancy which should be
scrutinised in further analyses. For nurses,
953 or 3.5 per cent of those trained in the
country emigrated.
Regarding the economic activity status, the
labour force participation rate of these
Tanzanian emigrants is estimated at 69.9 per
cent (OECD 2008) which is lower than the
national rate (88.4 per cent) and the subSaharan rate (72.6 per cent) but higher than
the overall African rate (63.4 per cent). The
total unemployment rate of 5.9 per cent is
lower than the African and sub-SaharanAfrican rates (6.5 per cent vs. 12.0 per cent
respectively). By level of educational
attainment, as generally, Tanzanian migrants
with tertiary (higher) education are less
affected by the unemployment compared to
migrants with lower educational levels. The
unemployment rate is estimated to have
reached 4.2 per cent, 7.4 per cent and 8.1 per
cent respectively for migrants with high,
medium and low educational attainment.
This means that international migrants from
Tanzania are better involved in the labour
market than others from Africa, especially
when they are highly educated.
On the other side, it is acknowledged in
Tanzania that refugees in the old settlements
have contributed to the economies of the
regions in which they live (UNHCR 2010).
Besides that, Tanzania is increasingly
receiving irregular and mixed migratory
flows, most of them from the Horn of Africa,
heading to southern African countries in
search of safeguarding physical and
economic security (IOM 2009).
Moreover, Indian and Chinese migration to
Tanzania has occurred over time, since the
end of the 19th century, through distinct
waves and for diverse motives. Basically for
labour purposes for the later and trade for the
former. In the 1930s Chinese went to settle
in Zanzibar. During the 1960s and 1970s
workers were sent by the Chinese
government as part of development
assistance to Tanzania (around 13,000
workers in the railway construction). Private
entrepreneurs and traders began doing
business there during the 1990s. Some
expatriates, in the 1990s, went initially to
Tanzania with the intention of working in
industries, such as construction, textiles, or
food products before they switch into
business and trade activities. Many people of
Indian origin are traders and they control a
sizeable portion of the Tanzanian economy.
Limitations
Tanzania
of
Migration
Data
in
Except for refugees, research on migration,
within and beyond the Tanzanian borders, is
hampered by insufficient, if not inexistent
data. Tanzania’s National Bureau of
Statistics, for instance, has no data at all on
emigration (Prinz, 2005). Only data and
estimates from developed migration
receiving countries and international
organizations are used to overcome such
gaps.
Other key gaps still exist not pertaining only
to non availability of accurate numerical
estimates of migrants and remittances, but
also to lack of information on migrants’
profiles and migration policies (implicit and
explicit) related to all migration issues in the
country.
Tanzania’s Efforts
Tanzania being an African country has also
realized the potential of its people who have
decided to stay in foreign countries in terms
of skills and economic investment.
Previously Tanzania was concerned over
brain drain and made all efforts to restrain
migration. It is now gradually giving way to
migration facilitation and changing from
“brain drain” to “brain gain” concept. The
government is seriously exploring the best
ways to reap the benefits of migration. It is
creating an environment in which Tanzania
can gain from the wealth of skills and
expertise that its people in the diaspora
posses. There are many countries in the
world which have immensely benefited from
engaging their diaspora in their development
goals. Good examples are India, China and
Philippines.
Tanzania
hosted
the
International
Conference on ‘African Diaspora Heritage
Trail’ in Dar es Salaam from 25th to 30th
October, 2009. The theme of the conference
was “An African Homecoming: Exploring
the Origins of the African Diaspora and
Transforming Cultural Heritage Assets into
Tourism Destinations”. The African
Diaspora conferences aimed at sharing
accessible expertise and technical assistance
in the development of heritage tourism
programs and products.
As a result of the government’s recognition
of its circular migrants and the diaspora, and
coupled with the current focus on these
groups, the Government has established that
Tanzanians in the diaspora have acquired
professional experience in various fields.
Some have vast investment potential and do
constitute a critical reserve of skilled labour
force. Consequently, Tanzanians of the
diaspora are considered as one of the
country’s
economic
development
stakeholder. The Government thus envisages
a structured diaspora role in diverse sectors
of development such as tourism.
Remittance Flows to Tanzania
Tanzania is receiving a very low amount of
remittances annually. Only US$ 14 million
were received in 2007 (US$ 19 million in
2008) representing 0.1 per cent of the GDP
and 0.5 per cent of the ODA (World Bank
2009 and 2010). Per capita, the amount is
insignificant (US$ 0). As for comparison, the
average is US$ 26 for sub-Saharan Africa
and US$ 262 for Nigeria in 2007. The same
year, the ratio of remittances to FDI (Foreign
Direct Investments) is also insignificant
while the ratio to the ODA (Official
Development Assistance) is only 0.5 per
cent. Indeed, as mentioned above, the
number of immigrants from developing
countries in Tanzania is quite noteworthy
with respect to the amount of foreign
investments reaching US$ 647 million in
2007 and US$ 744 million in 2008 (World
Bank, 2010). The ODA amounted to US$
17.5 million in 2007 and US$ 12 million in
2008 representing three to four times the
amount of remittances. Although most of its
emigrants live in Africa, Tanzania receives
the highest amount of remittances (49.3 per
cent) from Europe which should clearly be
correlated to wage differentials and, at a
lesser extent, to migrants’ profiles (skills).
The percentage of remittances inflowing
from North America is 37.3 per cent while
the share of remittances from the entire
African continent is only 11.0 per cent.
The most striking observation with regard to
remittances in Tanzania is that this country
is one of the few developing countries where
the outflow of remittances is higher than the
inflow confirming the impact of its
migratory pattern of a country receiving
more migrants/refugees than it sends abroad.
US$ 46 million left Tanzania as outflow of
remittances in 2007 and US$ 54.4 million in
2008. Foreign investors from developing
countries, as seen above, might remit partly
or totally their savings to their origin
countries. Thus the inflow of FDI is
compensated, partly, by the outflow of
remittances. The average of remittances
outflow per capita amounted to US$ 59 in
2007 (World Bank 2009). An IOM study
(2009c), on the remittance transfer between
Tanzania and Uganda concluded that some
formal data shows a net flow of funds in
favour of Uganda (US$ 2.6 million from
Tanzania vs. US$ 1.6 million to Tanzania,
according to postal bank records in 2008).
Overview of the Tourism Industry in
Tanzania
One might consider these figures with
caution since the true size of remittances,
including unrecorded flows through formal
and informal channels and remittances in
kind, is believed to be larger in most of
countries. The study on the TanzaniaUganda remittance corridor (IOM 2009c)
found out that almost 60 per cent of the
interviewed migrants preferred remitting
through the informal systems. The amount of
money transferred remains unknown. This
occurs despite the availability of a wide
range of formal transfer facilities (banking
institutions, post offices and remittance
companies) although more or less reached by
larger groups of population. The cost
limitations of the formal system are cited as
the main reason for avoiding it. Furthermore,
some banks in Tanzania opened agencies in
the UK and USA to simplify deposits by
Tanzanians living abroad. Others have even
created investment related products tailored
to suit the needs for investments back home
(IOM 2009c).
Tourism is the sum of the phenomena and
relationships arising from the travel and stay
of non-residents in so far as they do not lead
to permanent residence and are not
connected to any earning activity.
On the other side, amounts of the
remittances outflow are subjected to
underestimation than the remittances inflow
due to registration differentials and transfer
channels used for each. This means that the
outflow of remittances from Tanzania might
be much higher than indicated. Moreover,
remittances in and outflows are not often
geographically
disaggregated
by
origin/destination countries. For instance, a
clear cut answer on whether the outflow of
remittances from Tanzania is mostly due to
refugees, to other immigrants or even to
Tanzanian nationals is unknown.
Tourism is one of Tanzania's leading
economic sectors, providing employment,
foreign
exchange
and
international
recognition. Tanzania has some of the
world’s finest tourist attractions and game
reserves. Equally famous are trekking
expeditions (notably Mount Kilimanjaro)
and coastal tourism. These attractions,
among others, qualify tourism as a growth
sector, as they offer immense opportunities
for expansion of the sector.
Growth of tourism was 1.9 percent in 2009.
This explains the risks of its reliance on
foreign tourists, which makes it susceptible
to swings of the global economy. The sector
also faces inadequate technical, managerial,
and entrepreneurial skills for a modern
tourism
industry
and
infrastructural
bottlenecks and poor tourist supporting
services (health, finances, insurances, ICT,
etc), which have resulted in substantial
under-exploitation of the nation's tourism
potential. Addressing these constraints will
lead to expansion of not only natural
resource based tourism, but also cultural
tourism.
Tourism, however, remains the single most
important area of the Tanzanian economy in
which the role of small tourism
entrepreneurs has not been systematically
investigated. Yet its ability to provide
opportunities for small-scale entrepreneurs
has been well established. Circular migrants
may be attracted to tourism ventures since
their overseas experiences are likely to have
increased their familiarity with different
lifestyles and, in turn, their ability to
maintain cross-cultural interactions.
Harnessing Circular Migrants and
Diaspora Contributions
Migration contributes to countries of origin
by way of the three R’s: remittances,
resourcing expatriates, and the return of
migrants to their countries of origin. In the
context of this paper, migration takes into
account current circular and temporary
migration realities. It is noted that
underdevelopment is among the route
courses of migration. Migration can both
adversely affect development and can have
important benefits. Much of the literature on
diaspora contributions focuses on skilled
migrants and how trade, technology, and
capital formation are facilitated by migrants
with advanced degrees. But both low-skilled
and high-skilled make contributions to their
homeland. A growing body of research
suggests that skilled migrants and country
networks abroad are important reservoirs of
knowledge (Saxenian 2002a, 2004, 2006;
Barré and others 2003; Kuznetsov 2006;
Westcott 2006; Wickramesakara 2009).
Other studies highlight the contributions of
all migrants, including low-skilled diaspora
(Orozco 2003, 2006a, 2006b; Lowell and
Genova 2004; Lucas 2004, 2006; Portes,
Escobar, and Radford 2007; Crush 2011).
Other studies analyze how members of the
African diaspora contribute to their countries
of origin (Chikezie 2000; Mohamoud 2003,
2010; Mohan and Zack- Williams 2002;
Bakewell 2008).
2.0
MATERIALS AND METHODS
2.1
Area of the Study
Recently, the need to diversify away from
wildlife tourism (as well as complement it)
and develop other attractions has been
recognized by both the public and private
sectors. The coastal zone is one of the areas
that have vast, untapped potential to attract
tourism investment. The coast of Tanzania
is tropical as Tanzania lies just south of the
Tanzania has a long coastline of about 800
kilometers excluding near shore islands,
bays, lagoons and estuaries. The study area
therefore extends from Dar es Salaam to
Tanga and between Dar es Salaam, Mafia
and Kilwa.
Figure 1: TANZANIA - Coastal Tourism Zone showing Study areas
Source: Circular Migration Survey, 2011
2.2 The Universe
The universe was made up of two areas
namely the city of Dar es Salaam and Kilwa.
Kilwa District, particularly Kilwa Kivinje,
Kilwa Masoko, Kilwa Kisiwani, Songo
Mnara, Sanje ya Kati and the adjacent
Mangrove Reserves and nearby caves form
the main tourist attractions. These areas can
be considered the 'jewels' of Tanzania's
Swahili Coast.
Plate 1: Seated at the ruins of the Husuni Kubwa sultanate palace at Kilwa Kisiwani
Source: Circular Migration Survey, 2011
Other areas have excellent attractions as
well, but these three priority areas have the
most potential because of the uniqueness of
the sites and resources and the diversity of
attractions within a small area.
2.3 Target Populations and Study Units
Dar es Salaam’s population has an estimated
size of approximately an estimated
population of 4 million. It is estimated that
approximately 69% of the population growth
was caused by rural-urban migration
(Sommers, 2001).
Figure 2: Map of Dar es Salaam
Source: Wikipedia
The majority of the poor city residents are
proprietors of small businesses and account
for 20% to 40% depending on the area of the
city. Petty traders or street vendors are 15%
to 20% and consists mainly of male youth
between 20 and 29 years of age. Skilled
workers account for 20% of the labour force.
Unskilled labourers are 10 to 30% (PHDR,
2002).
Figure 3: Number firms and number of people working in Dar es Salaam
Source: National Bureau of Statistics: Census of Business Establishments, 2003-2005
Dar es Salaam is Tanzania’s economic and
financial center, with a concentration of
large manufacturing, economic and financial
center, with a concentration of large
manufacturing
and
medium-scale
enterprises. There is good reason to believe
that the growth of many of these small
businesses is boosted by remittances and/or
circular migration.
For Kilwa District, there were 171, 057
people in the last national census, of which
82,322 were males and 88,835 were females.
Kilwa District is located in Lindi Region in
southern Tanzania. It lies on latitude 80 20 to
90 56 and longitude 380 36 to 39050 east of
Greenwich.
Figure 3: Map of Kilwa
Source: Research at Songo Mnara
To the north it borders with Rufiji district,
Coast Region, Lindi and Ruangwa Districts
in the south, Liwale district in the west and
to the east, it borders with the Indian Ocean.
The total district area is 3, 347.50 km2 of
which 12, 125.9 km2 is surface land and
1,221.52 km2 is the ocean. It is
administratively divided into 6 wards, 20
wards and 97 registered villages (Masoko
and Kivinje urban areas inclusive).
2.4
The Sample Size
A randomly selected sample of circular
migrants for the Dar es Salaam City was
drawn from a general list of small businesses
available from the National Bureau of
Statistics (2005). This process proved
productive, yielding 56,460 randomly
selected small and medium businesses of a
size of 1-20 employees. Out of these, 174
respondents were sampled for the survey.
Accordingly, the only requirement for being
interviewed was that the owner was a
circular migrant or had received or was
receiving remittances. Based on these
criteria, the number of circular migrants
sampled was 113, while the number
receiving remittances was 37 and 24served
as a control group.
For Kilwa, given the relatively small size of
towns such as Kisiwani, Kivinje and Masoko
and other surrounding villages, it was
decided to take as full a census as possible
until the target of 150 was reached. Further,
it seemed unwise at that stage to screen
respondents according to the size of their
establishments, however defined. On the
Kilwa part, no attempt was made to select a
control group. The total sample size reached
for the study was 324.
2.5
Sampling Procedures
The techniques used to identify respondents
were thus a combination of snowball and ad
hoc sampling. The snowball technique was
useful because it was hard to locate subjects
with specific characteristics. For Kilwa,
where snowballing proved ineffective, the
researcher resorted to combing all
establishments for circular migrants. In this
way virtually all of Kilwa was covered to fill
a quota. All these circumstances dictated the
application of different methodologies in the
two areas. In the Dar es Salaam City, where
there are hundreds of thousands of
establishments, the decision was made to
screen businesses for size using the number
of workers and to focus on those employing
20 or fewer. More than likely many circular
migrants were excluded because they had
larger establishments. For Kilwa, on the
other hand, had screening been attempted, it
is certain that the target of 150 would not
have been met. For these reasons, the two
samples could be merged and treated as one.
The findings are presented and discussed
comparatively
2.6
Methods of Data Collection
A questionnaire was developed and pretested
in both Dar es Salaam City and the Kilwa.
Apart from general information (age, gender,
education), it featured five sections:
migration and return, establishment of the
business in tourism, remittances, retained
links abroad, and questions about the
operation of the business.
2.7. Data Analysis
Data collected through the survey using
structured interviews were prepared by
cleaning, coding and entering them in a
computer
using
SPSS
programme.
Categorical data analysis was adopted
because background characteristics and the
observed
outcomes
were
measured
categorically. Categorical variables are
variables that can be measured using only a
limited number of values or categories as
opposed to continuous variables (Powers and
Xie, 2000)
3.0
RESULTS AND DISCUSSION
3.1 Socio-economic Characteristics of
Respondents
All 150 Kilwa and 174 Dar es Salaam
respondents grew up in Tanzania. Most were
males, but the ratio of males to females was
higher for the Dar es Salaam City (6:4
compared to 4.5 for Kilwa).
Figure 1: Composition of Study Respondents for Dar es Salaam City and Kilwa
Dar es Salaam
Respondents
Kilwa Respondents
Male
Male
Female
Female
Source: Circular Migration Survey, 2011
Not all interviewees were circular migrants.
Forty-five persons representing 26 percent
for the Dar es Salaam City were people who
never migrated and 97 representing 65
percent for Kilwa.
Respondents overall were young and fairly
well educated. In the Dar es Salaam City, 63
percent were below the age of 45. Fifty
seven percent had received a secondary
education; 17 percent had acquired a first
degree and 10 percent a postgraduate degree.
The pattern was somewhat incomparable for
Kilwa: 61 percent were below age 45, 67
percent had completed only primary school
education. 29 percent had secondary
education but only 4 percent had a first
degree.
3.2
Migration
Migration, for those who had returned, was
highest during the decade beginning in the
mid l995s. Before 1995 the number of those
who left Tanzania was relatively small.
External migration rose sharply between
1995 and 2000. It remained at a plateau for
the next five years, and then peaked again
between 2009 and 2011. This second peak
was sharpest in the Dar es Salaam City;
nearly three times more circular migrants left
between 2009-2011 than in the previous
quinquennium. The steep climb in external
migration among circular migrants merits
comment. This was the time when the
diaspora were encouraged by the
government of Tanzania to invest in various
sectors of the Tanzania economy. Many
migrants went out with an intention of
earning money and remitting back to their
relatives and/or establishing investments in
this country.
3.4
Reasons for Emigration
As shown in Table 1, economic reasons were
greater for Kilwa than in Dar es Salaam by
48 percent compared to 18 percent. The Dar
es Salaam City, on the other hand, showed
significantly higher levels of educational
motives, 31 percent compared to 19 percent.
Two reasons may account for these
differences between the two areas. First, it is
well known that tourism as an industry is
highly sensitive to recession in certain areas
of Tanzania. As one of Tanzania's main
tourism area, the Kilwa area would bear the
brunt of the decline in tourism. Second,
because the Dar es Salaam City hosts the
highest concentration of the country's
educational institutions, one would expect it
also to have the highest concentration of
people wanting to pursue further education
abroad. Odds ratios show that educational
reasons and a combination of reasons are
more associated with migration of circular
migrants.
Table 1: Reasons for Migration
Reasons
1. Family
2. Economic
3. Educational
4. Socio-political
5. Combination
6. Other
TOTAL
%
14
48
18
12
2
6
100
Kilwa
N
21
72
27
18
3
9
%
15
18
31
5
18
13
150
100
Dar es Salaam
N
26
31
54
9
31
23
Odds Ratio
0.34
4.6
0.25
20.68
0.24
174
Source: Circular Migration Survey, 2011
The United States, the United Kingdom, and
Canada were host countries for the
overwhelming majority of Tanzanian
migrants. The two regions exhibited marked
differences. However, the United States was
the host country for 73 percent of Dar es
Salaam respondents compared to 27 percent
of Kilwa respondents. Nineteen percent of
the latter chose Canada compared to only 7
percent of the former. The figures of the
United Kingdom were about comparable: 26
percent and 21 percent for the Kilwa area
and Dar es Salaam City, respectively. These
differences in the proportion of circular
migrants received by host countries are
consistent with the motives alleged. Whereas
Canada would have been attractive as a
country of great opportunity to those
prompted by economic motives, the United
States would have remained the country with
the greatest educational opportunities.
4.5
Attitudes toward Host Country
Migrants were asked what they liked most
and least about their host countries. Table 2
presents their likes and Table 3 their dislikes.
Most Kilwa respondents (30%) relished the
economic opportunities, followed by the
level of discipline (19%), educational
opportunities, and living standards (17%
each). Dar es Salaam respondents welcomed
the standard of living (27%), followed by
cultural and aesthetic reasons (19%),
educational opportunities (14%), and
discipline (l0%). Why should cultural and
aesthetic reasons figure so prominently
among Dar es Salaam respondents in
contrast to a mere four percent of their Kilwa
equivalents?
Table 2: Most liked Aspects of Host Countries
Kilwa
Aspect
Frequency Valid Percent
1. Work Opportunities
45
30
2. Educational Opportunities 25
17
3. Standard of living
25
17
4. Cultural/Aesthetic
6
4
5. Discipline
29
19
6. Other
20
13
TOTAL
150
100
Frequency
38
24
47
33
18
14
174
Dar es Salaam
Valid Percent
22
14
27
19
10
8
100
Odds Ratio
1.2
2
2.93
0.11
1.13
Source: Circular Migration Survey, 2011
Note: The term "cultural and aesthetic
reasons" groups together such answers as
"different cultural" "the scenery'' and "the
people."
including those who left as students, is
distributed among Dar es Salaam
respondents and it can be opined that having
traveled less, they would have been struck
more by the experience. As stated above,
One reason perhaps lies in the fact that a
higher proportion of younger people,
Table 3: Least Liked Aspects of Host Countries
Aspect
1. Climate
2. Discrimination
3. Difficulty in adjusting
4. Social life
5. Dissatisfaction with
6. social amenities
7. Nothing special
8. Other
TOTAL
Kilwa
Frequency Valid Percent
61
41
30
21
11
6
12
7
3
21
12
150
2
15
8
100
Dar es Salaam
Frequency
Valid Percent
45
26
64
37
19
11
16
9
0
14
16
174
8
0
9
100
Odds Ratio
2.9
0.81
0.77
0
0
0
Source: Circular Migration Survey, 2011
Kilwa respondents, motivated mainly by
economic
reasons,
liked
economic
opportunities and the "discipline" in the
society best. Discipline here refers to the
work ethic in the industrialized countries,
including such values as punctuality,
reliability, and universalist standards. It
contrasts with opposing values such as lack
of
punctuality,
irresponsibility,
and
corruption of which most migrants would be
keenly aware upon their return. Odds ratios
indicate that all aspects were associated with
liking host countries except discipline. As
shown in Table 3, the two outstanding
problems were the cold climate and racism.
For more than 40 percent of Kilwa
respondents the climate was their number
one dislike; they were followed by 21
percent for whom racial discrimination was
the main concern. Among Dar es Salaam
respondents the priorities were reversed,
with discrimination cited by 37 percent and
the climate by 26 percent. Calculated odds
ratios are supportive of this contention.
Scholars and governments viewing external
migration as a potential contributor to
national development usually cite the return
of higher levels of training, a reverse of the
brain-drain in fact. Respondents were asked
whether they had acquired skills and what
these were. An overwhelming majority (81%
among Dar es Salaam and 62% among
Kilwa respondents) answered positively.
Skill acquisition was significantly higher
among Dar es Salaam circular migrants,
consistent with the related finding that
education played a bigger motivating role
among those drawn from the Dar es Salaam.
More critical is the nature of skills and their
relevance to local industry and economic
development. In this study of Tanzanian
circular migrants, most of the skills
transferred were “relatively simple ones”
acquired primarily in low-tech industries
Table 4: Types of Skills Acquired Abroad
Skills
1. Craft
2. Service-Oriented
3. On-the-job
4. Technical
5. Professional
TOTAL
Kilwa
Frequency Valid Percent
46
38
26
21
26
21
6
5
18
15
122
100
Frequency
36
24
42
28
44
Dar es Salaam
Valid Percent
21
14
24
16
25
174
100
Odds Ratio
1.18
1.75
2.87
0.52
Source: Circular Migration Survey, 2011
Acquired skills by Tanzanians were grouped
into five categories according to the
necessary degree of education (see Table 4).
The lowest, Level 1, refers to craft skills that
could have been acquired through
apprenticeship. Mechanics and plumbing fall
into this category. Level 2 includes serviceoriented skills such as cosmetology,
catering, and entertainment. Level 3 includes
on-the-job skills such as marketing and real
estate. Level 4 encompasses technical skills
requiring institutional training such as
interior decorating and fashion design. And
finally, Level 5 comprises professional skills
such as engineering, nursing, and piloting.
The types of skills acquired and their
proportions were not evenly distributed
between the two sampled areas. Level 5, or
professional skills, describes those acquired
by 15 percent Kilwa and 25 percent Dar es
Salaam circular migrants. Job-related skills
were acquired by 21 percent Kilwa and 24
percent Dar es Salaam circular migrants.
Technical skills were acquired by 5 percent
of Kilwa and 16 percent of Dar es Salaam
respondents. Combined, the technical and
professional levels account for 20 percent of
Kilwa and 41 percent of Dar es Salaam
respondents who had acquired skills abroad.
Our data therefore suggests that the transfer
of skills is not equally distributed. There
were disproportionately more Kilwa than
Dar es Salaam respondents with craft skills
(38% to 21%), and similarly more Kilwa
than Dar es Salaam respondents with
service-oriented ones (21% to 14%). Dar es
Salaam respondents mentioned more of onthe-job, technical and professional skills than
others. Calculated odds ratios indicate a
positive association between light skills and
the migrants’choices. It is only professional
skills that appeared to be liked by Dar es
Salaam circular migrants perhaps because of
their strong educational background.
Plate 2: With one of the Tourism circular migrant owning a restaurant at Kilwa Kivinje
Source: Circular Migration Survey, 2011
4.6
The Return
Although cold climate of the north was
ranked as the feature most disliked by
Tanzanian migrants, it did not feature at all
among reasons cited for the decision to
return. As shown in Table 5, completion of
studies, family, and "time to return" are the
three most prominent reasons given. Climate
figures in only 5 percent of Kilwa and 7
percent of Dar es Salaam responses.
Table 5: Reasons for returning to Tanzania
Reasons
1. Studies completed
2. Family
3. Time to return
4. Economic reasons
5. Climate
6. Other
TOTAL
Kilwa
Frequency Valid Percent
63
42
36
24
14
9
24
16
7
5
6
4
150
100
Dar es Salaam
Frequency
Valid Percent
14
8
40
23
59
34
16
9
12
7
33
19
174
100
Odds Ratio
5
3.84
0.16
2.58
3.25
Source: Circular Migration Survey, 2011
Some puzzling differences between the two
areas are evident. Whereas 48 percent of
Kilwa
responses
cited
economic
opportunities as the reason for migrating,
completion of studies is the reason given for
return in 42 percent of responses. On the
other hand, 31 percent of the Dar es Salaam
responses gave educational opportunities as
the reason for migrating; now 34 percent cite
“time to return” rather than completion of
studies as the reason for returning.
In summary, return migrants are motivated
far more by the pull factors of home than by
the push factors of the host country. This is
set out in Table 6, where multiple answers
are grouped together. Dar es Salaam
respondents said that they were responding
to the pull of home, family, economic
prospects, and the like (80%), and not so
much to the cold climate, dislike of or
inability to adjust in the host country (20%).
For Kilwa respondents, pull factors were
significant among 92% and push factors very
low (cited by a mere 8%). Where push
factors do operate, they were somewhat
greater among Dar es Salaam circular
migrants. The category “Other,” which
grouped “studies completed” with a range of
personal factors, was cited by 51 percent.
Calculated odds ratios are supportive of the
association of these factors and the decision
to return to Tanzania.
Table 6: Factors Affecting Decision to Return to Tanzania
Factors
1. Pull factors
2. Push factors
TOTAL
Kilwa
Frequency Valid Percent
138
92
12
8
150
100
Dar es Salaam
Frequency
Valid Percent
139
80
35
20
174
100
Odds Ratio
2.89
Source: Circular Migration Survey, 2011
4.7
The Business
This section examines the types of business
circular migrants operated as well as the role
of capital and labor in the enterprises linked
to migration. Those who hold that migration
enhances development argue that it is a
source of capital for small enterprises, which
in turn contributes to the economy by
increasing
production
and
reducing
unemployment. It should be noted that no
single dominant factor seemed responsible
for the decision by the majority of return
migrants, whether in the Dar es Salaam or
the Kilwa, to enter into business; many had
more than one reason. Both areas are parallel
in terms of the responses, as Table 7 shows.
Fifty percent of Kilwa and 53 percent of Dar
es Salaam respondents explained their
actions in terms of market forces such as
demand, good investments, and more
earnings. Personal reasons, such as training,
enjoyment, and family, are cited in 50
percent of Kilwa and 47 percent of Dar es
Salaam responses. Calculated odds ratios
confirm this assertion.
Table 7: Reasons for going into Business
Reasons
1. Family friends
2. Opportunity
3. Independence
4. Enjoyment
5. Higher income
6. Convenience
7. Use of Training
TOTAL
Kilwa
Frequency Valid Percent
11
7
60
40
6
4
22
15
8
5
15
10
28
19
150
98
Dar es Salaam
Frequency
Valid Percent
23
13
68
39
14
8
5
3
16
9
17
10
31
18
174
100
Odds Ratio
0.53
2.06
0.1
8.87
0.56
0.96
Source: Circular Migration Survey, 2011
4.7
Types of Businesses
Since Dar es Salaam is the seat of the
country's commercial activity, wholesale and
retail trading and transportation were,
understandably, the two primary businesses
operated by circular migrants. Art and
entertainment were next, in 12 percent of
cases. Manufacture ranks low, sharing fifth
place with cosmetology. On the Kilwa side,
the main type of business operations carried
on by circular migrants is not, as might be
thought, the villas and hotels known to
proliferate along the Coastline. Rather, 35
percent are in wholesale and retail trade,
compared to 18 percent who operate
guesthouses, 12 percent who operate
restaurants and catering services, and 10
percent who are involved in transport. The
rest are spread thinly over a very wide range
of productive activities and services: real
estate (7% arts and crafts (6%), agriculture
and manufacture (5% each), entertainment
(4%), and construction (3%).
4.8
Sources of Start-up Capital
Savings abroad are the primary source of
capital for between eight and nine cases of
every ten. For small enterprises, overseas
migration plays a significant role as the
single largest source of capital formation.
4.9
Remittances
This survey considered the role of
remittances since it cannot be assumed that
capital inputs into local business operations
are made only after migrants return home or
that these inputs are made just once. Indeed,
it was observed that a small proportion of
these circular migrants (22% of Kilwa
respondents; 11% of Dar es Salaam
respondents) start their operations before
returning home. It is reasonable to assume
that at least some start-up is affected through
remittances. There are also those businesses
owned and run by persons who never
migrated that are supported by remittances.
Roughly 40 percent of the Kilwa and 30
percent of the Dar es Salaam respondents
received remittances and identified the
persons making these. Relatives constituted
the most frequently cited source, as Table 8
reveals. Odds ratios calculated also confirm
the association between circular migrants
and persons running enterprises in places of
origin.
Table 8: Relationship of Person Remitting
Reasons
1. Spouse
2. Relative
3. Friend
4. Business Partner
6. Other
TOTAL
Kilwa
Frequency Valid Percent
20
13
102
68
7
5
21
14
0
0
150
100
Dar es Salaam
Frequency
Valid Percent
35
20
85
49
17
10
28
16
9
5
174
100
Odds Ratio
2.9
2.9
0.55
0
Source: Circular Migration Survey, 2011
The role of kinship is a bit more pronounced
in the tourism zone (Kilwa) than in the Dar
es Salaam City where 68 percent of remitters
are relatives compared to 49 percent.
Unfortunately, this study is unable to
comment fully on the degree of kinship
involved. However, 81 percent of Kilwa and
89 percent of Dar es Salaam remittances
originate in the United States. Canada
figures more prominently as a source for 15
percent of the Kilwa circular migrants
compared to 2 percent in the Da es Salaam
City. Somewhat surprising is the finding
indicating that goods are so markedly in
Kilwa remittances: 33 percent are sole
goods; 33 percent include cash and goods
together (Table 9).
Table 9: General Type of Remittance
1. Cash
2. Goods
3. Cash and Goods
4. Not Stated
TOTAL
Kilwa
Frequency Valid Percent
38
25
49
33
49
33
14
9
150
100
Dar es Salaam
Frequency
Valid Percent
50
29
14
8
110
63
0
0
174
100
Odds Ratio
0.04
7.6
0
Source: Circular Migration Survey, 2011
In the Dar es Salaam City, cash and goods
are remitted to 63 percent of the recipients.
This emphasis on goods could be because
many businesses embrace some form of
trade, for which direct import through
relatives is sometimes more profitable. Cash
alone is remitted to 25 percent of Kilwa and
29 percent of Dar es Salaam recipients.
Calculated odds ratios confirm the findings.
Remittances for two-thirds of Kilwa and
three-quarters of Dar es Salaam recipients
value less than half of the yearly net earnings
of the business.
Table 10: Type of Tourism Investments
Kilwa
Frequency Valid Percent
1. Hotels and Guest Houses
9
6
2. Tour Guide Services
14
9
3. Restaurants
36
24
4. Taxi and Minibus services
41
27
5. Water sports
18
12
6. Art and craft production and distribution 32
22
7. Food and Beverages Services
0
0
TOTAL
150
100
Dar es Salaam
Frequency Valid Percent
26
15
5
3
31
18
75
43
12
7
17
10
8
4
174
100
Odds Ratio
0.12
2.44
2.15
0.36
0.78
0
Source: Circular Migration Survey, 2011
The study sites varied somewhat in terms of the types of tourism investments made. Twentyseven percent of Kilwa respondents invested in minibus services, in comparison to 43 percent
of Dar es Salaam respondents (Table 10). Dar es Salaam respondents exhibit higher
percentages than their counterparts in establishment of hotels and guest houses as well as
food and beverage services. However, Kilwa circular migrants seem to be more aggressive
than Dar es Salaam circular migrants in some types of tourism investments such as tour
guide, restaurant and art and craft. Perhaps this difference could be attributed to the more
varied tourist activities that attract tourist flows to Kilwa area.
5.0
CONCLUSION
The study has noted that Dar es Salaam City is an important transit site for tourists and as
such circular migrants wishing to invest in tourism enterprises have bright avenues. Dar es
Salaam City is very active in terms of providing support services for circular migrants in
view of the supportive migration environment the Tanzanian government has already
initiated. Kilwa on the other hand has demonstrated a high potentiality for eco-tourism. The
ruins, monuments, beaches and marine resources found in Kilwa which attract a significant
number of tourists offer a number of potential tourism investments which circular migrants
originating from this coastal area have begun to capitalize on. The Government therefore
needs to improve tourist infrastructure such as airfield, roads, water supply and electricity
which appear today as constraints to the development of the industry in Kilwa.
The study has found that exposure; work experience abroad, remittance and regular visits are
the most significant predictors of tourism entrepreneurial ventures among the circular
migrants and the diaspora in Tanzania. The government should include these elements in
migration cum tourism policy to augment entrepreneurial ventures. To boost circular
migrants’ investments in the tourism industry, the study noted that there is a need to relax
tariffs on their tools of trade they come with. Migration also made a clear difference in
personal development. The overwhelming majority of respondents in both samples said they
benefitted from the acquisition of skills and professions offered by the host countries - a
development that had certainly given some of them, at least those in Dar es Salaam, some
managerial edge.
One critical finding of the present study, with both policy and theoretical implications, is the
identification of ways in which migration contributes to small-business development. In
geographical areas, remittances and personal savings made in host countries were the single
greatest source of start-up capital and these impact the local economy positively.
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