The study examines the implication of tourist hotels’ procurement strategies on smallholders upgrading in local linkages using the evidence from horticultural-tourism value chain in Tanzania. In-depth interviews with the hotels’ procurement managers/chefs, intermediaries, individual farmers and groups, farmer organisation, survey and documentary review were conducted. The collected information was subjected to qualitative and quantitative data analysis and interpretation. The results show that, while some strategies, i.e. sourcing from wet market, have negative impact on smallholders upgrading and local linkage, others such as captive procurement strategy, enhance smallholders’ competence and capabilities to access tourist hotels’ market. The study recommends for policies to further increase smallholders know-how to supply more horticultural produces to tourist hotels and strengthen local linkage between agriculture and tourism sectors in the country.DANIDA under BSU-GEP project