Purpose This paper aims to examine the role of innovation strategy on economic sustainability in the hospitality industry. The focus is on the tourist hotels in Tanzania. Design/methodology/approach The study uses survey of tourist hotels (n = 346) in the country’s Coastal and Northern tourist circuits. Structural equation modelling was used to test the hypothesized relationship. Findings The findings indicate that innovation strategy in the industry emphasizes on standardized services; service quality; product introduction readiness and lastly on technology usage. Innovation strategy positively relates with the economic sustainability performance. Specifically, the strategy promotes hotels' sustainable growth, resource management long-term profitability, customer satisfaction and value chain management. Practical implications The findings elucidate on how sustainability can be integrated with core business strategies, to make corporate sustainability a reality. The findings also enlighten on the need for hotels to focus on innovation strategy to benefit from sustainability related opportunities. Moreover, the ability to understand customers’ needs and develop innovative services that offer social and environmental solutions can have an important implication on long-term economic success. Originality/value Most studies in the hospitality industry focus on innovative strategies geared towards environmental management. Hence, understanding how innovative strategy influences long-term economic sustainability as a core focus of any business endeavour is important. This study contributes to that body of knowledge as it uses innovation strategy based on Schumpeterian entrepreneurial approach in understanding the role of innovation on economic sustainability.

Purpose The purpose of this study is to identify and validate indicators of entrepreneurial orientation (EO) in the hospitality industry, as well as to examine its dimensionality in the context of emerging economies with a specific focus on tourist hotels in Tanzania. Design/methodology/approach The study uses a mixed-method approach for data collection and analysis. The qualitative study involved 20 in-depth interviews with hotel managers. Based on interview insights, indicators of EO were identified and applied in contextualizing the study and develop the survey questionnaires. The second phase, which was quantitative in nature involved a survey of hotels (n = 346) in the Coastal and Northern tourist circuits of Tanzania for validation and generalization. The exploratory and confirmatory factor analyses were used to analyze the quantitative data. Findings EO in the studied context consists of proactive-risk-taking, innovativeness and competition approach. Hotels focus on proactive and risk-taking efforts concurrently, undertake wide-ranging acts; pursue bold and risk decisions in exploiting opportunities; being proactive on opportunity exploration but less emphasis on initiation speed on actions of competitors. Innovativeness focuses on providing quality services; standardization of services; product introduction; and technological advancements. Besides, the conventional dimensions, hotels use competition approach geared at extensive marketing; customer management; and flexibility in pricing based on competition. EO also exhibits multidimensionality with its dimensions exhibiting moderate-to-high correlations and with acceptable discriminant validity. Practical implications The study’s findings imply that EO and its respective indicators confirmed in western contexts are not necessarily a perfect reflection and applicable in the hospitality industry in emerging economies like Tanzania. Hospitality firms must be vigilant with contextual characteristics – economically, socially and culturally shaping entrepreneurial opportunities. Originality/value This study identifies and validates indicators of EO in the hospitality industry in emerging economies. Moreover, the study adds to the body of knowledge that EO in this context is also multidimensional in nature.

When local communities are allowed to participate fully in tourism trade activities either through supplying goods and services or direct employment in the tourism sector-inclusiveness of tourism, trade can be realized in a practical sense. Research indicates that, in most tourist destinations in Africa, the tourism trade continues to be characterized by environmental and social-cultural degradation and inadequate local community participation associated with revenue leakages and weak economic linkages. The mechanism on how tourism trade contributes inclusively on local communities' benefits such as inclusive growth and poverty alleviation remains unclear. Despite destination economies engaging in services liberalization, little evidence exists on how such trade policies have been beneficial at enhancing inclusive benefits of the tourism trade. Therefore, this chapter aims to clarify how trade policies can be employed to promote the inclusiveness of the tourism trade.

When local communities are allowed to participate fully in tourism trade activities either through supplying goods and services or direct employment in the tourism sector-inclusiveness of tourism, trade can be realized in a practical sense. Research indicates that, in most tourist destinations in Africa, the tourism trade continues to be characterized by environmental and social-cultural degradation and inadequate local community participation associated with revenue leakages and weak economic linkages. The mechanism on how tourism trade contributes inclusively on local communities' benefits such as inclusive growth and poverty alleviation remains unclear. Despite destination economies engaging in services liberalization, little evidence exists on how such trade policies have been beneficial at enhancing inclusive benefits of the tourism trade. Therefore, this chapter aims to clarify how trade policies can be employed to promote the inclusiveness of the tourism trade.