Dissertation (MA Business Administration)This study has intended to assess the contribution of tourism industry in social economic development in Tanzania. A cross sectional research design was adopted; a sample size of 113 respondents was obtained through a purposive and non-purposive sampling techniques. The study has used both quantitative and qualitative methods for data analysis. Statistical Package of Social Sciences (SPSS) version21 and Excel software were used to analyze the data. Findings have revealed that, game-view tourism (35%) and cultural tourism were the major tourisms activities undertaken. Data also have revealed that tourism industry ranked second source of livelihood (30%) to the community after agriculture and contributed in improving social service to the community. Tourism contributed on the constructions of schools (37%) and medical facilities. The sponsorship of student was 30% while sports were by 7%. The community presented major challenges impeded the growth of tourism industry in Tanzania included; none availability of enough standard accommodations for tourists (30%) and lack of skilled labour (22%).It is strongly recommended, Government to create enabling environment to this sector. To this end, this form of tourism can become a viable alternative economic activity for the poor people in rural areas of Tanzania.