Influence of Economic Factors and Government Initiatives on International Tourism Demand in Kenya
DOI:
https://doi.org/10.53819/81018102t2183Abstract
This study examined the influence of economic factors and government interventions on the demand for international tourism in Kenya. Using a correlational research design and data from the Kenya National Bureau of Statistics, Kenya Tourism Board, and World Development Indicators, the study analyzes various economic indicators and tourism-related data for the period 1980-2019. The analysis includes correlation analysis, regression analysis, cointegration testing, and Vector Error Correction Model (VECM) analysis. The findings reveal significant relationships between economic factors, government initiatives, and international tourism arrivals. GDP and tourism earnings exhibit strong positive correlations with arrivals, while variables such as the weighted exchange rate, trade openness, tourism product price, substitute product price, and tourism promotion funds show moderate to negative correlations. Regression analysis and VECM modeling provide insights into the relationships and dynamics among the variables, allowing for forecasting of future trends. The findings of this study suggest that government initiatives, particularly investment in tourism promotion, play a significant role in attracting international tourists to Kenya. The country's GDP and tourism earnings are also important factors influencing tourism demand. These findings can guide policymakers and tourism stakeholders in formulating strategies to further develop and promote the tourism industry in Kenya. Measures to enhance the country's political stability, diversify tourism offerings, and allocate sufficient funds for tourism promotion can contribute to sustained growth in international tourism arrivals.
Keywords: Tourism Demand, Economic Factors, Government initiatives, Tourism Promotion Fund, Product Price, Substitute Product Price
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