ECONOMICALLY, diversification is a common concept but of critical importance.
It means an asset allocation plan, which properly apportions resources among different types of investment.
Investors accept certain level of risk but they also need to have an exit strategy, should investment fails to generate the expected return.
Through construction of a well-diversified portfolio, investors protect their investments while embracing great potential for growth.
And, that explains why we find reports that Tanzania is redirecting efforts to new sources of tourists in efforts to boost the country’s tourism sector highly pleasing.
Under the new diversification drive, some 600,000 new visitors are expected from five new markets—China, Israel, Russia, Oman and Australia.
Traditionally, Tanzania has been solely relying on the United States of America, United Kingdom, Germany, Italy and France as the main sources of tourists.
While we appreciate the traditional markets, we firmly believe that the country—as other investors looking forward for return on their investments—there are remain huge business opportunities worthy exploring in other developed nations.
Tanzania is naturally endowed with huge tourism potentials, including wild animals, mountainous features, beautiful beaches and generous people.
True, the government, through the Ministry of Natural Resources and Tourism, in collaboration with Tanzanian embassies abroad, has been doing a fantastic job in marketing the country’s tourist destinations.
But, continuing with the traditional markets alone may not necessarily exhaust the available potentials to accommodate more tourists.
Statistics show that last year Tanzania received 1.5 million tourists, mainly from the US, UK, Germany, Italy and France.
Probably the diversification strategy that the government has embarked on will accelerate the number of visitors and help increase earnings, especially the dearly needed foreign currencies.