The Economics and Politics of Tourism in Kenya

What is tourism?From a layman's point of view its activities that take place at recreational amenities and facilities.Tourism is a wide field and cover much more than recreational activities.Its therefore becomes very important to understand what tourism is,how its benefits a country and how we can improve tourism as a country?Kenya is yet to fully enjoy the fruits of tourism yet Kenya is one of the few countries in the world that has one of the biggest tourism industry. Tourism is widely recognized as a key contributor to the Kenya's economy.Kenya’s services sector, which contributes about 64 % of Gross Domestic Product, is largely dominated by tourism. The tourism sector as it is has exhibited steady growth in most years since independence and by the late 1980s had become the country’s principal source of foreign exchange. In the late 1990s, tourism relinquished this position to tea exports, because of a terrorism-related downturn and political instability. The downturn followed the 1998 bombing of the U.S Embassy in Nairobi and later negative travel advisories from Western governments. Tourists, the largest number from Germany and the United Kingdom, are attracted mainly to the coastal beaches and the game reserves, notably, the expansive Tsavo National Park (20,808 square kilometers) in the southeast. The government and tourist industry organizations have taken steps to address the security problem and to reverse negative publicity. Such steps include establishing a tourist police and launching marketing campaigns in key tourist origin markets. Tourism has seen a substantial revival over the past several years and is the major contributor to the pick-up in the country’s economic growth.Tourism is today Kenya's largest foreign exchange earning sector, followed by flowers, tea, and coffee. In 2006 tourism generated US$803 million, up from US$699 million the previous year. Tourism forms a vital foundation for the country's economy and is highlights two of Kenya's most unique features: wildlife and beaches. Careful planning and proactive leadership have maximized the tourism potential as Kenya continually outpaces it's East African neighbors. A solid infrastructure coupled with a devotion to wildlife conservation has propelled Kenya to the forefront of the regional tourism industry. 

However pertinent issues arise.Why does Kenya fail to get the maximum benefits from its robust tourism sector?One of the key thing is that tourism is largely run by multinational corporations.These multinational corporation are run like cartels where they lobby for friendly legislation.They also repatriate most of the profits to their mother country.Its crucial to note that most of this conglomerates are foreign owned. Its important for the government to put in place legal mechanism to curb this.A country like Libya has put in a law that requires that 70% of the profits be reploughed back in the country while 30% can be repatriated.  The cost of tourism is so exorbitant compared to Tanzania and South Africa.Many tourist are preferring to go to these destination other than Kenya.Is this the way to go?Although its being argued that this will work positively in the long run in terms of preserving our destinations and our enviroment

There are a myriad of leakages in the multiplier cycle in the tourism sector.Tourists sometimes carry along with them things like alcohol and water from their original country .This has a negative impact to the economic benefits of tourism.Such products should be highly taxed by the government to encourage use of local products.Another contributor to leakages is the fact that you will find that most senior management position in places like hotels are reserved for foreigners yet Kenya has talented persons who can execute such roles.The locals are left to do the less prestigious menial jobs in the tourism industry.This has a negative impacts on growth of Kenyan economy.For example the Maasai community is being dissuaded from adopting new methods of life in order to act as tourist attractions.What does this mean to the local economy?This people will not be educated and will continue to leave in deplorable conditions.

The government also need to intervene in order to reduce the number of licenses required before establishing a tour related service.Its time the government also supported the local investors by giving subsidies and financial support in order  to compete against the multinational corporations.The decentralization of government department that deals with investors is also key to improving the business environment. The issue of sustainable tourism also play an integral part in helping the country reap maximum benefits.The government should also focus its energy in promoting domestic tourism which could be more sustainable than international tourism.

The government also need to address the issue of sex tourism.Together with stakeholders this is a problem that need attention.This is because its erodes all the benefits the country accrue from the tourism industry.Sex tourism is highly related to  use of drugs and this is having an adverse effects on the productive youths.


Not unless the government address such issues,Kenya will not fully benefit from tourism industry which has great potential.But does our government listen?