The Contribution of Tourism Policy On Entrepreneurship Development in Rwanda

ABSTRACT Tourism is a large industry with many operators such as hotels, companies involved in transportation and tours and because of its complexity; guidelines are required for its sustainability. Investment incentives and financing, capacity building and private sector federation’s participation are the strategies of Rwanda tourism policy. The services provided by the tourism industry are low compared to the number of tourist in Rwanda. The study found out the contribution of tourism policy on entrepreneurship development in Rwanda. The study used descriptive research design. The study population was 71 companies of which 68 managers were purposively selected from tour operators, hotels, travel agencies and academic institution chosen randomly in Kigali city. One validated instrument was used to collect data. Simple percentages, frequency counts and means were used to analyze the data. Results showed that the tourism industry provide non-financial incentives such as marketing facilities(82.9%), land(90%), basic infrastructures(98%), regular training(64.3%) and getting operational licensing (98.6%); financial incentives such as tax exemption(98.2%), financial schemes provided to entrepreneurs(98.6%) and government guarantee fund(98%). Advocacy, lobbying, capacity building, funding sources facilitation and providing dispute arbitration and business challenge assistance (58.6%) were the private sector federation’s contribution to entrepreneurship development in tourism industry in Rwanda. The results also showed that the extent to which private sector federation services affect the success of business in Rwanda was small (88.8%). Limited market, lack of skilled labor force and shortage of water and electricity were the major factors hindering entrepreneurship development in tourism industry in Rwanda. It is recommended that government should provide enabling environment like provision of water and electricity, encourage domestic tourists to fill the gap in low season.