Abstract:
The usage of digital marketing has revolutionized the promotion of tourism products and services in the 21st century. However, the number of international visitors in Tanzania remains constant to about one million since 2012. This study aimed at investigating the effects of digital marketing on the performance of tour operators in the tourism industry in Tanzania. The study was guided by Schumpeter’s theory of innovation, and profit maximization theory. Convergent parallel mixed-method design was employed. The sampling frame composed of 543 tour operators, and a sample size of 230 firms. Using a stratified sampling technique, the sample was divided into three strata, proportionately distributed in three locations Arusha, Dar es Salaam, and Zanzibar. The sample was selected using a simple random sampling technique from each stratum. A structured questionnaire was used to collect quantitative data, and interview guide was used to
collect qualitative data. Data were analysed using descriptive statistics and summarised using percentage, mean and inferential statistics. Structural Equation Modelling (SEM) was used to test the hypotheses. The study findings support Schumpeter’s theory of innovation, and profit maximization theory by revealing that digital marketing has a positive significant relationship with tour operators’ performance. The results of the
study suggest that tour operators have to use advanced ICTs such as an electronic database to influence visitors’ decisions, virtual reality to sell the experience, update websites and social media, and protect database against malicious attacks and promote customer knowledge. The results are useful to stakeholders in enhancing the promotion of the tourism products and services as they provide new insight on how electronic marketing influence performance in the tourism industry in Tanzania.
