The distinction between these two types of tourism was expanded on by Cohen (1972) in his widely cited tourist typology based on a ‘familiarity-strangerhood’ continuum. In other words, Cohen suggested that tourists are more or less willing to seek out different or novel places and experiences; some travel within an ‘environmental bubble’ of familiarity – they seek out normal/familiar (food, language, accommodation, fellow tourists) and are unwilling to risk something new or different- whereas other seek out different or unusual experiences. This, in turn, determines how different tourist travel. Some are ‘institutionalized’ inasmuch as they depend upon the tourism industry to provide familiar, predictable, organized and packaged holidays; others, conversely, are ‘non-institutionalized’.[8]
Tourism itself takes many forms and, in fact, many argued that the market for tourism has become increasingly fragmented into a wide variety of niches, each with its own clientele, desired locations, forms of organization and associated impacts. So-called mass tourism to coastal resorts and, to a leisure extent, to mountain areas for annual vacations, although still the dominant pattern, has diversified into multiple trips, of varying duration, to undertake a wide range of activities, both active and passive, in diverse environmental settings, with varied consequences. Ecotourism, cruise tourism and heritage tourism have each been suggested by various observers as being the fastest growing type of tourism, often on the basis of slender evidence.[7]
2.1.6 Sustainable development in the context of tourism
Sustainable development in context of tourism has been defined by Butler (1993b: 29) as:
Tourism which is developed and maintained in an area (community, environment) in such a manner and at such a scale that it remains viable over an indefinite period and does not degrade or alter the environment (human and physical) in which it exists to such a degree that it prohibits the successful development and wellbeing of other activities and processes.
In contrast, he defined sustainable tourism thus (Butler 1993b: 29):
Tourism is in form which can maintain its viability in an area for indefinite period of time.
Sustainable development, and its derivative sustainable tourism, appears at first to offer a way forward that simultaneously considers the economic, environmental, and socio-cultural dimensions of development. It is reasonable, therefore, to consider the potential of the concept of sustainability to give guidance in the management of change and in the selection of opportunities to pursue, and impacts that are to be encouraged or to be redressed. Thus, attention is now directed to the concept of sustainable development and its application in a tourism context.[7]
The term ‘sustainable tourism’ suggests that tourism must be sustained. It is impossible to have sustainable tourism in the absence of tourism! Therefore, the concept implies that the tourism is the solution to whatever problems have been or may be identified. The minds of its proponents have already been made up: tourism must be sustained. This is a very narrow perspective. It implies that tourism should be sustained in some form, almost regardless of cost! Rather than advocating the perpetuation (even growth) of tourism as an end in itself, it is suggested that it is more appropriate to ask weather, and in what forms, tourism might contribute to sustainable development more broadly conceived. Of course, the answer is likely to be different in different places and times.
The most common situation is that tourism is not being developed in a totally pristine area: the world contains very few of these. Rather, tourism must be inserted into an existing economy. Ideally, it should not displace this economy but should be complementary to it. It should help to diversify the economy rather than replace one sector by another. [7]
2.2 Measuring economic growth and development
2.2.1 Meaning of economic development
What is meant by development, the answer to this deceptively simple question shapes how one judges the respective levels of development of different economies. It affects what factors we consider as contributing to progress, and our answer to what development is will influence the public policies aimed at achieving a society’s development goals.[1]
Major international economic cleavages not only reflect differences in prosperity but also reflect different demographic characteristics, different political systems and different roles in the system of international specialization and trade. Defining and measuring ‘economic development’ is therefore problematic. As we have seen, there are strong grounds for thinking in terms of underdevelopment rather than development as far as the LDCs are concerned, since the term ‘development’ implies a trajectory of improvement, in both relative and absolute term. In addition, it is now widely accepted that ‘development’ must be conceived in broad terms of social well-being. Narrow economic definitions, while admirably precise, provide only part of the picture. They encompass changes in the amount, composition, rate of growth, distribution and consumption of resources, but they do not extend to the effects these changes have on people’s lives. This is clearly reflected in the UN’s Millennium Development Goals:
- Eradicate extreme hunger and poverty
- Achieve universal primary education
- Promote gender equality and empower women
- Reduce child mortality
- Improve maternal health
- Combat HIV/AIDS, malaria and other diseases
- Ensure environmental sustainability
- Develop a global partnership for development
Development, then, should really be thought of not only in terms of income and consumption but also in terms of people’s health, education, housing conditions, security, civil rights and so on. Seen in this light, development is clearly a ‘normative’ concept – that is, it involves values, goals and standards that make it possible to compare a particular situation against a preferred one. Development can properly be evaluated only in the context of the human needs and values as perceived by the very societies undergoing change. It also follows that although ‘development’ implies economic, social, political and cultural transformations, these should be seen not as ends in themselves but as means for enhancing social well-being and the quality of human life.[2]
The level of economic development and economic growth can be measured either by the growth of total output or of total income. The two most common measures used for international income and output comparisons, and hence for measuring economic growth, are gross national income (GNI) and gross domestic product (GDP).[1]
2.2.2 Gross Domestic Product
Gross domestic product is the total value of all income (= value of final output) created within the borders of a country, regardless of whether the ultimate recipient of that income resides within or outside the country. [1]
Tourism’s contribution to GDP can be determined by summing up both the foreign and the local visitors’ expanses and subtracting from this value the purchases of the tourist sector (productive consumption). GDP consists of the following elements:
- The amount domestic tourism spends on consumption, and that part of the amount spent on international transport by citizens of the given country which were paid for services and products in the given country (before the journey)
- Value of investments for tourist purposes (e.g. buildings and equipment),
- The amount spent by foreign tourists on products and services provided by the given country’s service industry (invisible export), and
- The outflow (decreasing the GDP) resulting from the fact that the citizens of the country in question purchase goods and services from another country’s tourism industry.[3]
2.3 Tourism and the economic development
2.3.1 The characteristics of tourism as an economic sector
Tourism is one of the most complex industries in the world. The supply of the tourist sector is a complex product that incorporates a number of services, qualify of which are influenced by a great many factors (such as public safety and security, hygienic qualities of the destination, or the hospitality of inhabitants). Therefore, tourism (the sector offering the services) is unable to change all these directly, if anything it can be done indirectly. On account of this complexity, tourism has been the subject of many debates as to whether it is possible to consider it as one uniform industry or if its components (e.g. catering, accommodation or tour operating) should be seen as separate and individual ones.[3]
2.3.2 Tourism as an invisible export
Tourism, as an economic activity, has a large number of characteristics that distinguish it from other sectors. One of the most important of factors is that it can be seen as a form of invisible export. Invisible in the sense, that the tourist product itself is a service, intangible and cannot be transported. In the case of tourism, it is not the delivery of the tangible product that is carried out from the manufacturer to the consumer, but it is the very consumer who actually travels to the product. The tourism service can be conducted only if the consumer (i.e. the visitor or the tourist) is present at the place of production at a given moment. This, however, means a sort of uncertainty, as the consumer takes part in the production process; his/her behavior influences the quality of the product.
When evaluating tourism as an export activity, we have to consider that the demand for tourist products is, quite often, seasonal and that it react very sensitively unforeseeable and not easily susceptible changes. People participate in leisure tourism for recreation, they wish to have a good time, and they do not intend to choose destinations affected by war or diseases. Tourist demands are also affected by the fluctuation of exchange rates and natural disasters (earthquakes, volcanic eruptions, floods, or long lasting raining). [3]
2.3.3 The economic impacts of tourism
The economic impacts of tourism can be defined as change in the economic characteristics and economic structure of the sender and receiving areas occurring as a result of the development of tourism. The economic impacts are, in this sense, differentiated from socio-cultural and physical impacts by the fact that these later impacts come into force almost only and exclusively at the destinations. The flow of income, which will result in the formation of economic impacts, will produce an effect in both the sender and receiver countries (although the effect is more important on the receiving side, as this is where the income will go, whereas, in the sender countries it will only influence the expenditure side of the balance of payment). [3]
The development of tourism and representatives of the tourism industry highlight the positive impacts of tourism to stress its importance. According to that, the development of tourism is important for a country or a region first of all because as it creates job, generates income (e.g. in foreign exchange) as an invisible export activity, enhances the general status of economy by means of its multiplier effect and contributes to the general evolution of the economy. Examining the place of tourism in world economy we can rightly appreciate its economic performance, both worldwide and in specific countries as well. We must not however forget that when assessing the actual performances of tourism it is advisable to take those economic index figures into consideration that demonstrate not the absolute but the relative information and so assist us in evaluating the competitiveness of a certain country or region (e.g. instead of the number of arriving tourist or the total income, we should rather look at the average length of stay or average expenditure, the income per citizen or market share changes). [3]
The changes presented due to the economic impacts of tourism do not generally include the benefits and costs of socio-cultural and physical impacts affecting the given destination, despite the fact that these matters should also be considered when ascertaining the balance of these impacts. In many cases the various impacts of tourism cannot be separated from each other. The socio-cultural and physical environment fundamentally determines the way the development of tourism takes place, as well as the investments, infrastructure development, and the increase in number of arrivals that it entails. It is also influenced by what of kind of people the destination might attraction terms of their interests, type and spending structure (all these factors will affect the changes that tourism induces in the economic, physical and socio-cultural characteristics of a certain region).
There may be a considerable overlap between the economic, physical, and social-cultural impacts of tourism. The creation of jobs is definitely a very important economic impact, but the change in employment entails, a number of socio-cultural impacts, e.g. such as change in quality of life, the appraisal or devaluation of a certain knowledge, which makes it necessary to examine job creation from a social point of view. [3]
Such as above mentioned impacts, the development of an infrastructure can also be considered as one of the economic impacts, as the supply level of infrastructure is an important quality of the economic development of a country. We should not forget that the process of infrastructure development or the lack of it might have a significant influence on the physical environment of tourist receiving areas. The construction of new roads increases the build-up level; it may cause visual pollution, and can cause the degradation of the quality of the natural environment. [3]
2.3.4 Economic development and tourism
One of the most important positive economic impacts of tourism is the catalytic role that it plays in general development (including not only the economic growth, but also the improving quality in the economic structure and life of those involved.) In many countries and regions not having the necessary resources to lead pursuit traditional economic activities tourism may be the only sector that can quickly and efficiently launch or contribute to development.
The development of tourism has significant priority in most of these countries, since jobs created in regions that lack alternative resources and tax revenues contribute to the population-keeping capacity of the region and may lead to a rise in the living standard of the population. It also may decrease the need of central funds expended on solving social conflicts and unemployment.
The impacts of the development of tourism closely depend on the economic characteristics and geographical situation of the region in question. The main differences can be found between the developed and developing countries. The developing countries are characterized by:
- low gross income per person and the uneven distribution of assets and income
- high unemployment rate
- the limits of domestic market
- low developmental level of the local industry
- high proportion of agricultural products in export structure
- high foreign ownership rate in the industry and service sector.
To enable tourism to work as a catalyst of economic development, it is necessary that the specific country or region has countrywide or internationally considerable attractive power, which is competitive on the tourist market and can serve as a basis for the products to be developed. If there is no such attraction, it will need to be created artificially, as without it tourism cannot fulfill the role of serving as a regional developer and the whole sector will be unable to develop. Besides marketable attraction, the status of infrastructure is also important, already in the beginning phase, along with the accessibility, proper public safety and security, and the positive attitude of decision-makers towards tourism. [3]
2.4 Socio-cultural and environmental aspects of tourism
2.4.1 Social and cultural impacts of tourism
Tourism is a global phenomenon which is essentially taste driven, with regions coming in and out of fashion and often the topic of social conversation. This is often embodied in the concept of which places are ‘in vogue’ and ‘must see’ destinations. In this respect, tourism is about people and how people as tourist interact with other locations and peoples, engaging in experiences that may influence their own or the host community attitudes, expectations, opinions and lifestyles.
- The nature of socio-cultural impacts
Socio-cultural impacts relate to changes in societal value systems, individual behavior, social relationship, lifestyles, modes of expression and community structures. The focus of socio-cultural impacts tends to be the host community, i.e. the people who reside in tourist destinations, rather than the tourist-generating region. Mathieson and Wall (1982) state that socio-cultural impacts are’ about the effects on the people of host communities, of their direct and indirect associations with tourists’. Lea (1988 outlines the dimensions of tourist-host encounters and provides a useful starting point from which to define social and cultural aspects.
Sharply (1994) states that from a social and cultural perspective, the rapid extension of tourism is important in two respects:
- The development of tourism as a vehicle for economic modernization and diversification almost invariably leads to changes and developments in the structure of society. These may be positive and negative. In the positive sense, there may be society wide improvements in income, employment opportunities, education, local infrastructure and services. On the negative side, there may be a threat posed to traditional social values, the creation of factions of society who may take advantages of others and adaptation or weakening of cultural values.
- All tourists, to a lesser or greater extent, inevitably take on holiday their own benefits, values and behavioral modes: what may be termed cultural baggage. Cohen (1972) states that people tend to travel in an environmental bubble (see Murphy 1985:6). Therefore, the scope for mixing of cultures is great.
This gives rise to two ideas about the socio-cultural effect of tourism. First, that the interaction between host and guest could dilute or destroy traditional cultures. This reflects the literature that considers tourism primarily as a threat to culture and peoples. Second, that the interaction between host and guest could create new opportunities for peace and greater understanding.
- Factors influencing socio-cultural impacts
Having explored the general context, it is now apposite to consider the range of factors which influence the nature and extent of socio-cultural impacts. Sharply (1994) outlines four factors which shape the effects.
- Types and numbers of tourists
- Importance of the tourism industry
- Size and development of the tourism industry
- Pace of tourism development
Other related aspects which need to be consider include the nature of the host-guest encounter, the nature of the destination, and cultural similarities.
2.4.2 Tourism, Development and the Environment
The history of tourism clearly indicates that the environment of places has contributed to the birth and progress of tourism. Scenic sites amenable climates and unique landscape features have had an important influence upon the patronage of specific localities, regions or countries. The environment of the host region is crucial to the attractiveness of virtually all tourism destinations. Natural resources, ecosystems, regional ecology, and the cultural and commercial attractions in cities, whatever may be the designation or concept in their physical expressions, provide an important backdrop for the majority of tourism activities. [6]
The effects of environmental factors can be observed at all points of tourism process. Tourist behavior patterns, although not necessarily motivated solely by environmental conditions, are clearly influenced by them through choice of destination and length of stay. In other words, climatic features and newly discovered or developed ‘natural’ attractions may influence tourists’ loyalty to, substitution of and behavior in tourist destination. Environmental conditions place constraints on types of development, and destinations lacking appropriate climatic geological, floral or faunal conditions are seldom selected for tourist development.[7]
Tourism was increasingly considered to be in conflict with the environment, the debate dominated by dependency and limits to growth theories. However, in parallel with the evolution of sustainable development discourse, concerns about the environmental and social impacts to tourism have escalated in recent years. In this respect, the concepts of ecological limits, sustainable resources use and defined carrying capacities have found wide applicability [4] – ‘unless specific steps are taken, tourist destination areas and resources will inevitably become over-used unattractive, and eventually experience declining use’.[5] At the same time, however, it has also been recognized that tourism planning and management must be undertaken in the wider context of global commerce and its social, political, economic and environmental impacts.[4]
An alternative way of examining the consequences of tourism on the environment by consideration of environmental components is to focus attention upon distinctive ecosystems. The ecological composition and functional relationships of ecosystems are central to the understanding of how they form tourist resources, and the nature of tourist impacts that affect them. A large range of environments are used for recreation and tourism and, in many cases, they are protected or sensitive areas. They are often more attractive to tourists and thus more vulnerable to environmental stress than areas that are less complex environmentally. [7]
So far, it has been assumed that principles resources of tourism are predominantly natural attractions and that risk to the environment is created primarily by excessive numbers of tourist using these resources. One of the most obvious environmental effects of tourism is the development of these facilities and infrastructure that, in some instances such as in urban centers, also serve as the main tourist attraction. They can be observed in three major types of tourist development:
- The growth and change in tourist reports;
- Hotel and attraction development of urban centers;
- Second home developments and rural or peripheral tourism developments. [7]
Considerable knowledge has accumulated concerning the environmental consequences of tourism. However, much of this knowledge has been concentrated in specific aspects of impact with the result that a somewhat unbalanced picture of the environmental effects of tourism has emerged. Quite a lot is known about resort morphologies and infrastructure changes in urban environments but much less is known about the impacts of tourism on particular natural environment. A symbiotic relationship exists when the interacting sets of phenomena are mutually supportive. The roles of tourism in the creation of wildlife parks and the preservation of historic buildings are example of this relationship. Tourism may also exist in conflict with the environment. The trampling of vegetation, the pollution of resort beaches, and the irresponsible behavior of tourists disrupting the feeding and breeding habits of wildlife are examples of this conflict. The relationships of tourism with the natural environment are particularly ambivalent. This is a consequence of the complexity of the tourist phenomenon itself and the many interrelated components of the environment. [7]
2.4.3 Environmental impacts of tourism
To facilitate the study of environmental impacts of tourism, it is advisable to break ´tourism´ into its component parts. While there is some overlap between these categories, this provides a satisfactory basis for analysis. Broadly, tourism comprises:
Much concern has been expressed about increasing levels of transport on roads and in the air in industrialized nations, and the consequent wider effects in the environment and human health (Page 2005). Awareness of pollution emanating from various transport modes as well as direct effects on landscape and amenity values have escalated as transport infrastructure id further developed. The study of transport is one aspect of tourism which highlights the conflict between the environment and the industry. On the one hand, enabling travel is an essential criterion for tourism; roads, cars, aircraft and airports are all needed to permit the easy passage of tourists from home to destination and back again. Conversely, the negative effects are the pollution of the natural environment and damage to the quality of landscapes.9
Worldwide, over 1 billion people now travel by air. The damage caused to the environment starts before the aircraft even takes off. Airports require substantial tracts of land in order to operate safely and efficiently. [9]
Most often concerns connected to air travel are:
- Noise
- Emissions, fuel efficiency and energy
- Congestion
- Tourism destination development
There are two types of environmental impacts which occur in destination development:
- Those affecting the integrity and composition of the natural environment
- Those affecting the tourist experience of the environment
In essence, these two categories overlap but need to be viewed from different perspectives. For example, the effects of trampling on vegetation induce direct environmental change whereas overcrowding affects tourist enjoyment but have a different overall impact on the natural environment.
The following sections outline the major environmental impacts of tourism in destinations:
- Inappropriate development
- Loss of natural habitat and effects on wildlife
- Pollution
- Loss of spirit
- Overcrowding and traffic congestion
-
Wear and tear (physical damage on the environment)
- Tourism associated activities
In relationship to the impact of tourism activities, it is worth drawing out examples to indicate to what extent popular holiday activities can affect the natural environment.
While the premise of ecotourism is to assist in conservation and the well-being of local communities, it is often the case that ecotourism-based activities lead to deterioration in environmental quality (Page and Dowling 2002). Swarbrooke (1999:320), for example, argues that ‘today’s ecotourism destinations such as Kenya etc. have already suffered extensive negative impacts as a result of increased numbers of ecotourists. Despite researchers claiming that tourism and wildlife are compatible in these environments (Maher, 2008), it is clear that if a catastrophic human-related event destroyed a single breeding ground, with a high proportion of a single species, the consequences would be severe. [9]
2.4.4 Positive environmental impacts of tourism
The damaging aspects of tourism are significant and receive deserved attention. However, it is essential to recognize that positive impacts may be gained from tourism activity. Doswell (1997) notes that tourism can focus attention on significant environmental issues and stimulate initiatives to conserve and enhance the environment. The main areas to examine:
Conservation of redundant and/or historic buildings for alternative uses
Tourism can provide the impetus for converting disused buildings into foci for tourism activity. Many buildings retain their character yet can be carefully modernized to form new visitor attractions.
Enhancement of local environments
If tourism is viewed as an important source of income, it is likely that local government will seek to retain and increase visitor numbers by improving the general amenity value of the local environment. This is relevant to a range of environments, including rural, costal and urban areas. For many historic cities, improvements may consist of landscaping which reflects the heritage character of the townscape and simultaneously assists the visitor experience.
Protection of wildlife
It has been seen in various locations worldwide that tourism discourages poaching because it places economic value on wildlife and protection of natural resources. In many less developed countries, tourism acts as a force of conservation as it offers an alternative economic use.[9]
3. Objectives and Methodology
3.1 Aim of the thesis
The main objective of the thesis is to analyze the contribution of tourism to economical growth of Kenya with a view to past, present day and the future. The analysis will concentrate on the importance of tourism to the economic development of Kenya and its contribution to the gross domestic product as a foreign exchange earner and the welfare effects on the citizens of Kenya for the observed period.
3.2 Methods and Data Analyses
The thesis is comprised of two main parts. The first part is intended on theoretical knowledge of given topic. Theoretical part is divided into four sub-parts. Contemplator will read over basic understanding of tourism, tourism demand and tourism typologies. Second sub-part is devoted to measurements of economic growth and development, to obtain economical information itself. Third part combines tourism with economical development together. Sub-chapter also mentions concern of developing countries and its rising importance of tourism industry. Last part put stress on socio-cultural and environmental aspects of tourism. Last but not least, sustainable tourism is mentioned in view of connection to sustainability and sustainable development, as highly discussed issue lately.
The second part of the thesis is portioned out to two segments. The first one gives heed to general observation of present day situation in Kenya. Second part is approached to analyses of contribution of tourism to economic growth, covering up GDP, employment, international tourism expenditure et cetera. The Final part pays attention to visitor’s analyses, involving movement of the visitor inside the country, purpose of visit, visitor’s nationality and most attended national parks.
Both parts were composed together in order to give reader complex understanding of both theoretical and practical parts. Emerged conclusion will be decomposed in the end of the thesis, followed by feasible discussion of the issue.
Data applied in practical part of the thesis were basically secondary. Unfortunately, I was dependable only on indirect sources via trusted World Wide Web pages and Kenya’s Ministry of Tourism. Regrettably, I haven’ had a chance to visit Kenya and collect primary data. Data collected were worked together, counted, progressed and subsequently put into tables, which can be seen in the Appendix. Data shown in tables were processed into graphs, which can be found in practical part. Factors of the contribution of tourism to economic growth such as GDP and employment are consisted of two graphs. The first graph is given in factor unit. The second one is depicted as a percentage of factor growth. Data were also counted in order to get output growth or average spending of visitor per day.
4. Practical Part
4.1 Kenya: Introduction
Kenya spreads out on eastern part of African continent covering an area of 582, 350 sq. kilometers. Nairobi is the capital city with largest population. Population is estimated of almost 40 million inhabitants. According to World Bank literacy rate in country reached 87% in 2009, which exceeded an average of 72 % of Sub – Saharan Africa countries. Kenya still belong to countries with low income per capita. In 2009 total GDP amounted to 29,376 million US dollars ranking 84th place in the world. (See Table 1 in the Appendix).
In past few years, services sectors including tourism continued to power economic growth of Kenya. In spite of this, agriculture still remains as the leading industry contributing to GDP by 22 % in 2009, according to CIA World Fact book. Kenya exports high proportion of agricultural products, such as coffee, tea, sugarcane, cigarettes etc., in order to higher overall income.
In 2008 whole country suffered humanitarian, political and finally economical losses due to election crises, which led to sudden riots and violence. All sectors were affected by election except tourism, where was settled at least six months slowdown. Lack of tourism in those unpleasant times was real catastrophe for the economy. Countries biggest contributor of net foreign exchange earner was almost stopped as tourists were scared to travel to unstable violent country.
Since year 2009 tourism sector accelerated its full recovery after violent election crises, and begun to contribute into country’s economy significantly. Let’s observe what was happening in the past to present days, and finally outline the future possible estimates of Kenya’s fast growing industry.
4.2 Introduction of GDP in Kenya and other Sub-Saharan African Countries
Before analyzing contribution of tourism to gross domestic product, let’s observe whole GDP growth in Kenya and other African countries. Kenya’s GDP growth was increasing thru years 2004 – 2007. Graph on the next page shows neighboring countries nearby Kenya, in order to imagine other African countries economic performances. As we can see Sudan, Tanzania and Uganda has higher GDP growth than Kenya. Sudan for instance injected money to devastated infrastructure and government has support local businesses in order to enrich economical growth. In 2006 Kenya reached partially same growth as overall Africa and in 2007 actually raised by 7%, leaving Africa’s GDP behind. Political situation in the country worsen, and due to reforms, revolution accelerated vastly. Year 2008 and 2009 noted serious decrease in economy. Tourism sector was influenced by violence highly and suffered considerable looses. (See appendix for Table 2).
Source: Own work (data taken from WB)
4.3 Analyses of the contribution of tourism to the Economic growth of Kenya
In this chapter will be analyzed contribution of travel and tourism within Kenya’s economy. We will have a look on total contribution of tourism to GDP, total contribution of tourism and employment and international tourism expenditures. All given data were analyzed from year 2005 to 2009. Estimated amounts for year 2011 are also included, except future estimation for year 2021. (All data from this chapter are listed in Table 5 and 6 in the Appendix).
4.3.1 Total Contribution of Tourism to GDP
Kenya’s gross domestic product, as well as tourism industry experienced a positive economic trend from 2005 to 2008, establishing whole new market with tourism demand. Improved marketing system of travel agencies and widen information of Kenya Tourism Board was introduced in late 2005. Kenya Tourism Board provides travel agencies with valuable information to supply their customer needs fully. Growing economic momentum stopped in the second half of the year 2008 when Kenya coped up with violence in the country caused by election crises. Red colour of the graph indicates contribution of tourism to overall Kenya’s GDP. In years 2005 to 2007 tourism contribution sustained around 14 % of whole GDP. In 2009 Kenya begun to recover from unstable political situation, however lost more than half million US$ on tourism due to visitors doubts on security of the country. In this year contribution of tourism to GDP decrease to 11, 6 %, as is depicted in the Table 3 in the Appendix.
Source: Own work (data taken from WTTC and WB)
Green linear line shows contribution of tourism growth to GDP in percentages for clear understanding. The growth was obvious reaching its peak in 2007 by 21, 29 % than almost stopped in 2008. In 2009 Kenya suffered post election crises so badly that total contribution of tourism got negative 13, 92 % from the previous year. Total contribution reached $3403 million US.
4.2.1.1 Total Contribution of Travel & Tourism to GDP – Kenya, Africa, Worldwide comparison
Global view on the total contribution of tourism to GDP ensures perceivable trend of Kenya growing industry. Kenya should reach 11, 4 % contribution of tourism in 2011. It can be easily seen that total contribution of tourism in Kenya is higher than in Africa and worldwide. The forecast made pointed even higher contribution, rising up to 11, 6% by 2021. Numbers shown are great evidence of Kenya economical performance over tourism contribution to GDP. (See Table 4 in Appendix)
Source: Own work (data taken from WTTC)
4.2.2 Total contribution of Tourism to Employment
Tourism sector offered 708 000 jobs in 2005, which signed 4, 23 % of total labor force of that time in Kenya. In years 2005 to 2007 number of jobs offered by tourism industry remained stable. In 2008 labor force decreased due to limited offers on the side of demanders. Post election crises influenced not only foreign people but also local Kenyans who lost their job in circumstances of employment shortages. Until 2009 the sector reached 3, 35% employment of total labour force, therefore hasn’t been fully revived. (See Table 5 in the Appendix).
Source: Own work (data taken from WTTC and WB)
4.2.2.1 Total Contribution of Travel & Tourism to employment – Kenya, Africa, Worldwide comparison
Second graph points percentage share of total jobs offered by tourism. The biggest contribution holds Kenya, which will generate 9, 9 % by 2011 as predicted. In the longer perspective should increase its share by 0.2 % to 10, 1 %. In contrast to Africa it will reach distinct difference in exceeding by 2.9 % in 2011. Even in the world perspective Kenya reaches over the world notably. Increased employment contribution signifies also higher contribution to GDP as tourist will demand products and services produced and operated by local people. If economic conditions remain the same, we anticipate there will be a significant increase in the number of people employed in the tourist industry. (See Table 6 in the appendix).
Source: Own work (data taken from WTTC)
4.2.3 International Tourism Expenditures
International tourism expenditures are expenditures which are spent in Kenya by foreign visitors. The graph on the next page shows overall expenditures purchased by visitors and their average spending per day per capita. In years 2005 to 2007 positive rising trend can be observed. Government opened market to remoter countries such as India, Japan and China. Also security was intensified on the national airports in order to attract more tourists and higher international expenditure. Also capacity of international flights was increased. Kenya came up with new efforts toward diversification of leisure places supplied. (Facts are taken from annual reports of centralbank.go.ke). Average spending increased apparently as well. In 2005 visitor spent $88 per day. In 2007 was spent $ 233 per head but as the election crises occurred, the inflation went up. Consequently, visitor could afford less goods and services for same amount of money. And finally in 2009 visitors spend $65 less than the before. (For full data see Table 7 in the Appendix).
Source: Own work (data taken from WB)
4.3 Visitor Analyses
In this chapter, the stress will be put on visitor’s arrivals by purpose of visit, hotel occupancy by continent and length of stay of visitors. Last analyses will be focus on national parks visits as long as Kenya’s Safaris and natural reserves are significant contributor to number of visits in overall view of traveler’s entry to the country.
4.3.1 Visitors Total Arrivals and Departures - comparison
In the graph on the next page, can be see overall arrivals and departures to Kenya from year 2003 – 2008. Since year 2003 number of tourists visiting Kenya was growing until the most populous year 2007. In this year come to visit Kenya indispensable 1 816 800 visitors. Number of arrivals and departures remains almost equal; visitors come to the country to spend their holidays or business trips. The reason is simple, as Kenya is still developing country, there is no such a high standard of living, undoubtedly. (See Table 8 in the Appendix).
Source: Own work (data taken from Kenya National Bureau of Statistics)
In the second graph of France total arrivals and departures are shown noticeable discrepancies. Number of people who arrive to France is absolutely higher than a number who departs. There are several reasons to point out; a person who come to this country to obtain higher education, get a better well paid job, or to marry someone. These two graphs depict great difference between courtiers with high and low GDP, showing the difference between developed and underdeveloped country. (See Table 9 in the Appendix)
Source: Own work (data taken from WB)
4.3.2 Visitors Arrivals by Purpose of Visit
Visitors come to Kenya mainly for three different purposes – holidays, business and transit. Kenya offers valuable travel packages for its visitors in coastal areas, safaris and mountains. The analyses put mind on arrivals and departures focused on business and holidays. For insignificant transit numbers see whole Table 10 in the Appendix. In last five years Kenya notably improved its supply which led to constant increase in number of visitors. We can observe how many of tourists came to the country from 2003 to 2007. Number of arrivals was growing until 2008. In the year 2007 arrived to Kenya remarkable 1 278 500 of tourist looking for holiday. Kenya’s business visits reached its peak in 2004 when government assessed Nairobi as an advantageous place for conferences and higher its share evidently. The portion of business travelers reached 242 200 in 2007. After 2008 the gap between great performances had slow down due to crises, as mentioned before. Indeed business travel contributes to total arrivals approximately by ¼ , this tourist product line shouldn’t be forgotten as it has tremendous potential to future arrivals. (See Table 10 in the Appendix).
Source: Own work ( data taken from Kenya National Bureau of Statistics)
4.3.4 Tourist Hotel Bed Occupancy
Graph on tourist hotel bed occupancy is shown from year 2005 until year 2009 and was established for five main continents. Accommodation was primarily demanded by European tourists. Greatest part on that has United Kingdom, which reached 909 700 occupied beds and Germany with 685600, in 2009. Africa ranked the first position just once in 2008 reaching over half a million more occupied beds than Europe. America ranked third place in visits by reaching 325 700 occupied beds in 2009. Asia visitors ranked fourth place with 232 800 in the same year. Australia and New Zealand both together occupied 54 900 beds. Obviously, the graph shows that most tourist come from countries with high GDP per capita (OECD countries) the reason been that citizens from this country can afford to pay for holiday packages and take a holiday at least once a year.
Source: Own work (data taken from Kenya’s Ministry of Tourism)
Graph on the next page shows hotel bed occupancy by selected countries with highest number of visitors. European tourist from Britain, Germany and Italy take opportunity of travel packages the most. Purpose of this is that the distance to travel is not so far and they can afford longer stay.
Source: Own work (data taken from Kenya’s Ministry of Tourism)
Total number of hotel bed occupancy graph shows total portion of hotel bed occupied and available in whole Kenya. Greatest amount of visitors in hotels, Kenya experienced in 2007, 6 939 200 beds were occupied unrespectable to nationality. Nevertheless 14 711 600 beds remain available. The number of beds available increased in year 2009 and reached 17 125 300. Total occupied beds were almost three times lower than is an actual capacity available. Here is evident that Kenya disposes of huge capacity of beds and is prepared for tons of visitors considerably.
Source: Own work (data taken from Kenya’s Ministry of Tourism)
Kenya hotels are occupied just by one half of its real availability as shown in the graph above. Kenya reached 47% of hotel bed occupancy in 2007, since then hasn´t been reached higher peak as long as data were available. Election crises made its part on tourist in hotels in 2008. Since this year trend has been rising up, reaching 36, 5% in 2009. (See Table 12 in the Appendix).
4.3.5 Visitors Length of Stay
Visitor who came to Kenya within years 2000 to 2006, stayed in the country on the average 10, 2 days. We can see the upward trend within the years. In the year 2000 average visitor spent in Kenya 8, 7 days. While an average visitor in 2006 enjoyed his stay for 12, 1 day. The trend shows that average visitor spent in Kenya 3, 4 days more than he/she used to in the year 2000. These findings go together hand by hand with visitor arrivals by purpose of visit analyses, showing that people spent mainly on their holidays up to two weeks. (See Table 13 in the Appendix)
Source: Kenya National Bureau of Statistics
4.3.6 National Parks Visits
Last graph in this chapter shows most attended parks and reserves by number of visitors. We can observe that Lake Nakaru lying in the south – west of the country reached highest number of visitors thru years 2005 – 2007. Lake Nakuru attracted 346 800 guests due to pictures nature with thousands of pink Flamingo birds, white and black rhinos, zebras and Leopards. Second finest visited attraction in these years was wildlife reserve Maasai Mara, which is nearby Lake Nakaru in south- western part of the country. Masaai Mara welcomed its maximum 316 500 visitors in 2006. Animal Orphanage lies in the capital city of Kenya Nairobi within Nairobi national park. Animal Orphanage is the oldest orphanage in Kenya and begun to attract more and more people due to its educational and training facility. Government has injected money to the facility, which coincidently allured more visitors as it´s obvious from upward trend in years 2006 to 2009. Orphanage reached spectacular amount of 450 600 visitors in 2009. In contrast to 284 500 obtained visitors in the year 2008. But in this year Kenya suffered from the crises. In spite of that fact Animal Orphanage sustain the upward trend. Nairobi Safari Walk attracted 285 500 visitors due to its eco-tourism behavior. Kenya Wildlife Service offers the tour of wild life experience facing biodiversity conservation. They run lot of community projects so new investment can be invested to the Nairobi in order to generate higher revenues. Last but not least national parks and reserves offer plenty of jobs and promote lower unemployment in the country. (See Table 14 in the Appendix)
Source: www.tourism.go.ke
- Discussions and Conclusion
The objective of this bachelor thesis was to analyze the contribution of tourism to economic growth of Kenya.
Contribution of tourism to GDP is clear at the first sight. Tourism contributes to the total economy significantly, due to improvement of security system in the country, appreciable work of Kenya Tourism Board marketing, governmental subsidies through sector et cetera. Kenya needs to maintain stable political situation and stay away from bribes and violence as it was in sadly years 2008 and 2009. Forecasted analyses show respectful contribution of tourism to GDP growth. If Kenya succeeds in stable political, economical and social conditions, the growth will be accurate.
Tourism employment plays also role within Kenya’s economy. Working places available from tourism are mostly within travel agencies, hotels, airports, marine recreation, infrastructure and also working positions created within Ministry of Tourism. Jobs are mainly created in regions with attractive supply as in Nairobi, national parks, costal area with western – based hotels etc. Spatial division is not in favor with other parts of the country where many people suffer from unemployment and poverty, and are unable to travel long distances to get a job. In other words tourism employment is highly seasonal and dependable on tourism arrivals. However in provinces where the tourism supply is demanded, the share of jobs available is significant. Undoubtedly, many jobs in the country are given to foreign people, as long as foreign investors build holiday complexes, so it is convenient to raise a question if tourism truly contributes as much in developing employment opportunities for locals. Real share of foreign and local people employed in sector wasn´t unfortunately available.
International tourism expenditure makes a great deal of income of the country, people mostly from OECD countries come to visit Kenya and spend their money on leisure and business purposes. Real share of earned income will rise with more people coming to Kenya to spend their money for tourist’s packages. Average money spent by tourist per day has risen up, so Kenya should sustain growth through years by sustaining its wide range of resources, maintain its attractiveness for western countries and finally establish improvements in infrastructure.
Betterment of infrastructure can help increase number of arrivals to the country. Added value can contribute to spatial dispersion and mobility through all country. Standards set by improvement can also higher potential of remoter localities in Kenya which haven’t been exploited much so far.
Kenya high literacy rate could lead to sustainability of their regions by learning from OECD countries that create relevant share of Kenya present day tourism supply. However process of sustainable development won’t be fulfilled sooner than Kenyans enhance their own political stability and peace in country.
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- Appendix
Table 1: Kenya’s GDP in current prices
Source: http://data.worldbank.org/country/kenya
Source: Central Bank of Kenya and National Berau of Statistics
Table 2: GDP growth of neighboring states and Africa as a continent
Source: Own work (data taken from WB)
Table 3: Total Contribution of Tourism to GDP, growth, percentage
Source: Own work (data taken from WTTC and WB)
Table 4: Forecasted Total Contribution of Tourism to GDP
Source: Own Work (data taken from WTTC)
Table 5: Total contribution of Tourism to Employment
Source: Own work (data taken from WTTC and WB9)
Table 6: Forecasted Total Contribution to Employment in Percentages
Source: Own work (data taken from WTTC)
Table 7: International Tourism Expenditures
Source: Own work (data taken from WB)
Table 8: Kenya: Total Arrivals and Departures
Source: Kenya National Bureau of Statistics
Table 9: France: Total arrivals and Departures
Source: Own work (data taken from WB)
Table 10: Visitors Arrivals by Purpose of Visit
Source: Own work (Kenya National Bureau of Statistics)
* Provisional
Table 11a: Tourist Hotel Bed-Nights Occupancy, Permanent Occupants and Selected Countries from Europe
Source: www.tourism.go.ke
Table 11b: Africa: Tourist Hotel Bed-Nights Occupancy
Source: www.tourism.go.ke
Table 11c: America:Tourist Hotel Bed-Nights Occupancy
Source:
Table 11d: Asia: Tourist Hotel Bed-Nights Occupancy
Source:
Table 11e: Tourist Hotel Bed-Nights Occupancy
Source:
Table 12: Kenya: Total number of Hotel Bed Occupancy
Source:
Table 13: Visitors Length of Stay
Source: Kenya National Bureau of Statistics
Table 14: National Park Visits
Source:
- List of abbreviations
GDP Gross Domestic product
WTO World Trade Organization
UN United Nations
WTTC World Travel and Tourism Council
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