The terms of trade and real import capacity of the tourism sector in Tanzania

The paper argues that in the nineteen‐seventies, international tourism in underdeveloped countries is liable to have experienced the following: (a) a lower rate of growth of price; (b) a decline in the terms of trade for the sector; (c) a lower rate of growth in the real import capacity of the sector. These hypotheses are demonstrated for an area of holiday tourism, and for tourism in general, in Tanzania up to the end of 1976. Reference is made to the part played by the depreciation of the currency against the separate currencies of the major tourism markets.