A Dissertation Submitted in Partial Fulfillment of the Requirements for Award of the Degree of Masters of Science in Economics (MSC. Economics) of Mzumbe University July, 2013This study assessed the Contribution of Tourism on Poverty Reduction at Northern region in Unguja; A case of pro poor tourism at Kiwengwa- Pongwe village. The study used the cross sectional data of 91 samples population of households from all Shehias of Kiwengwa-Pongwe. The data analyzed by using SPSS and STATA softwares. The results showed that the most economic activities, by which the local community had been engaged for employments, were employments from the tourism related activities which were about 46.2 percent equivalent to 86.8 percent of total income accrued by the households from that sector. The market chain for the development of livehood of local community in that area the results have shown that about 73.6 percent were access the market for their sea products, the market for local spices to tourists were about 17.6, the market for selling handcrafts were 5.5 percent and only remaining 3.3 per cent were the market for their agriculture products. In other hand the impact of the tourism sector on the growth of other services about the 73.6 per cent of respondents have denoted that the massive flow of the tourism investors in that area have influenced the economic and social transformation in that areas. It was found that about 57.1 percent of the local entrepreneurs got their initial capital from the support of pro poor projects in that areas and only 42.9 percent of local entrepreneurs got their initial capital from their own means of business formulation. It was found that 47.3 percent reported that tourism have more significance on employment opportunities, about 36.3 percent said tourism have significance on development of infrastructure, 12.1 percent said tourism have significance on improvement of the social services and only 4.4 percent said tourism have significance on growth of other sectors. In conclusion there is a need for the government of Zanzibar to address the special policy which will enhance the role of local community on the development of tourism activities .The establishment of that policy should be well organized, documented and implemented. The study also has recognized that the government of Zanzibar should have the decentralization policy that will promote and enhance the pro poor benefits from the income collected by the local government on entire area in order to improve the local community development.