A DISSERTATION SUBMITTED IN PARTIAL FULFILMENT OF THE REQUIREMENTS FOR THE DEGREE OF MASTER OF SCIENCE IN ENVIRONMENTAL AND NATURAL RESOURCE ECONOMICS OF SOKOINE UNIVERSITY OF AGRICULTURE. MOROGORO, TANZANIA.A study to assess contribution of hunting tourism to general economy was conducted in Tanzania. This aimed at assessing the significance of Hunting Tourism (HT) to economic growth, community development and household income in Tanzania. Purposively Tanzania and Selous Game Reserve was selected to study contribution at macro and micro levels. Simple random sampling technique applied to select districts, wards, villages and households where data was collected for micro level study. At macro level secondary time series data was collected using literature review technique and at micro level structured questionnaire and focus group discussion techniques were applied. A total of 90 households were randomly selected from three villages around Selous Game Reserve namely: Msolwa station, Miguruwe and Ngarambe. At macro level data analysed by using descriptive statistics, trend analysis, Johansen test for co-integration and granger causality test. At micro level descriptive statistics, trend analysis and multiple regression of household income against other source of income were done. Generally results show that there is declining of hunting tourism business due decrease of hunting clients and animal hunted yearly; however, revenue collection is increasing. This is attributed by government policy due to changes in wildlife policy and fee structure. Apart from that since 1988 to 2013 the industry has been growing with annual average growth rate of 0.073%. However, the average annual contribution of HT to GDP growth has been decreasing from 1988 to 2013. Also unidirectional long run relationship exist between hunting tourism revenue and GDP which run from hunting tourism to GDP thus revealing the significance of hunting tourism to economic growth (GDP) of Tanzania. Conversely, the results indicate that contribution of HT to community development and household income was very little and insignificance. This is due to poor monitoring of benefit sharing scheme and none adherence of hunting regulation by hunting companies. Therefore, hunting tourism is more beneficial at macro level (GDP) as it contributes to economic growth but not beneficial at micro level as little contribution is experienced, this has an implication to the participatory approach management policy and its incentive to the participating communities. The participation dis-incentive also has implication in the ongoing constraints in conservation strategies. This study recommends good monitoring system to make the industry more beneficial to community and household level