The efficacy of tourism as a tool for economic development in Kenya

Abstract

This paper provides as analysis concerning existing structural deficiencies and socio- economic factors which impact on the efficacy of tourism as a tool for long-term sustainable development in Kenya. It also presents policy-related suggestions on alternative tourism strategy which can assist to ameliorate the social and environmental impacts of tourism development and enhance the efficacy of the industry in promoting : long-term sustainable development.

Kenya provides a good example of an African country which has embraced tourism as an important tool for socio-economic development. In the short-term, Third World Countries in general, and Kenya in particular, viewed the development of tourism as a quick and reliable source of much sought after foreign exchange receipts, job creation and economic growth. Whereas in the long-term it is usually envisioned that tourism development will contribute to economic diversification and, in consequence, reduce excessive over-dependency on the exportation of conventional raw materials. This is due to the fact that because the consumption of tourism products occurs at the place of production (the destination) it has, through its various possible linkages and associations with other industries (i.e., transport, agriculture, fishery , forestry, construction, handicraft), potential multiplier effects on the local, regional and national economy. However, a critical evaluation of the evolution and development of tourism in Kenya indicates that the country's tourism industry faces socio-economic problems and structural deficiencies which reduce the industry’s efficacy as a tool for local, regional and national sustainable development. For instance, there are extremely high leakage rates of the country's tourism revenues to external sources. It has been estimated that sometimes as much as two thirds of the gross tourism revenues go to foreign owned tour operators, and airlines, as well as to pay for imported commodities for tourists and the tourism industry .As a consequence, insignificant amounts of the tourism revenues trickle down to local people who are usually employed in servile and lowly paying jobs, and bear most of the negative social and environmental impacts of tourism development.