ABSTRACT
Worldwide, tourism generates millions of dollars for the economies of developed and developing countries. Tourism is also one of the fastest-growing economic sectors, especially in developing countries. It is characterised by multiple services such as a source of income and employment, foreign currency and the potential to reduce poverty. Local communities residing near tourism-basedb resources have reaped significant benefits that have contributed to improved livelihoods. The attainment of sustainable rural community livelihoods has depended on nurturing the relationship between tourism resources and the livelihoods they sustain. The development of tourism in many countries has had an influence on handicrafts which represents local traditions of the populations residing near tourism destinations. Historically, the handicraft sector has not been regarded as an important sector in development, despite the high participation of rural people, especially women, in the sector. There is dire need to conduct a literature review on studies on economic assessment of these livelihoods in different settings. The study conducted a literature review on the economic sustainability of tourism-based livelihoods, focusing mainly on handicrafts in Eastern and Southern Africa. The Sustainable Livelihood Framework was used to guide the study. Results indicate that the handicraft sector is largely informal in nature and therefore perceived to have low contribution to the economy. However, its expansion has sustained livelihoods especially where tourism has thrived. The governments of Southern and Eastern African countries should have well-articulated strategies geared towards supporting craft-based enterprises for sustainable rural income generation, employment creation and export.
