Analysis of and Recommendations for Kenya's Tourism Sector

Inhaltsangabe:Introduction: This paper analyzes the performance of Kenya’s tourism sector with a view to assessing tourism cluster cooperation, competitiveness and its sustainability impacts on the overall economy. The theoretical foundation is based on Porter’s Diamond Model and builds on the cluster concept and typology. This integrates competitiveness and performance improvements within the economic, social, cultural, environmental and political dimensions. The results of the analysis provide possible strategic guidance for the public sector in regard to tourism policies. Similarly, it provides strategies for competitiveness, interaction, and sustainability between the public sector and the private sector. In order for Kenya to achieve its goal of improving and sustaining tourism earnings (where do we want to go?), I examined the nation’s current position (where are we now?) and provided an analytical foundation for cluster development dialogue and design (how do we get there?). Chapter 1-5 examines the sector’s external and internal environment with the help of the STEEP (Social, Technological, Economical, Environmental, and Political factors) analysis that builds in turn, on SWOT (Strength, Weaknesses, Opportunities and Threats) as an analytical tool. In addition, Porter’s model examines the cluster’s performances, identifies factors that trigger development and sustainability, and the role of the governments and related institutions in the sector. After the agricultural sector, the tourism sector is the second largest contributor in foreign earnings. In 2008, the sector witnessed a major decline in revenues in as a result of post-election violence. Given that the tourism sector touches all sectors of the economy, the decline in tourism earnings was a huge blow to the nation as the sector employs more than 407,000 people directly and indirectly (World Travel and Tourism Council 2009). Furthermore, the sector has been susceptible to market price fluctuations, increasing competition, political instability, and the recent global recession. Kenya offers several natural, geographical, historical and cultural assets namely; wildlife, coastal beaches, alternative tourism, which include sports, hiking mountain-climbing, golf, sports, cruise tourism, safari rallies, among others. However, some of these areas are underdeveloped and offer opportunities for diversification of the tourism product and market. The national government’s strategy targets [...]