Vision and Long-term Development Strategy for Kenya's Tourism Industry
KIPPRA Discussion Paper no. 7

Abstract
This paper reviews tourism performance in Kenya in relation to the policy framework, focusing specifically on the absence of a shared vision and a long-term development strategy. Tourism is Kenyaˇ¦s third largest foreign exchange earner after tea and horticulture, and a major employer, accounting for 9% of the total wage employment in 1993. It contributes about 11% of the gross domestic product (GDP). After impressive growth in the 1960sˇV1980s, the sector experienced an unprecedented decline in the 1990s, particularly 1995ˇV1998 when annual tourist arrivals and receipts dropped by 1.5% and 19.5%, respectively. Promotion of mass tourism in 1965ˇV1994 led to substantial increases in tourist numbers but drastic falls in per capita tourist expenditure, length of stay, hotel occupancy, hotel room rates, and service quality. This tourism segment cannot be relied upon as a sustainable source of revenue as carrying-capacity limits of many tourism resources appear to have been exceeded. The capacity of the country to offer luxury tourism, the current target, has been largely compromised by the effects of years of promoting mass tourism. Specifically, the capacity has been affected by overcrowding at tourist sites, overdevelopment of tourist facilities, general insecurity in the country, poor infrastructure, and environmental degradation. This poor situation in tourism is attributable to i) the fact that there was inadequate reflection, consultation and planning when the policy to focus on the mass market was formulated, and ii) the absence of a shared tourism vision and a long-term development strategy. Kenya still does not have a shared vision for tourism generated through wide consultation and open dialogue among stakeholders in the industry, and the framework for tourism is incomplete in the sense that industry actors and activities are not adequately coordinated. Consequently, the policies developed for the sector have been ad hoc, unimplementable and without consistency, continuity, or a long-term focus. The tourism vision for the country could be built around pro-poor and sustainable development, based on the tourism products in which the country has comparative advantage. To attract the luxury cadre of tourists, Kenya needs to develop an appropriate vision and long-term strategy and start rebuilding its capacity to deliver high-quality products. In the short and medium term it is advisable for the country to continue relying on a blend of high- and low-volume markets as it raises the quality of tourist assets and service. A simultaneous but gradual increase in prices would restrict tourist numbers and enable the resources to recover. Once resources have recovered sufficiently and facilities and services have been improved, prices could be raised to a level sufficient to turn the country or designated parts of it into a high-value tourist market. High-value tours to game parks or wildlife safaris complemented by quality coastal beach holidays remain Kenyaˇ¦s primary tourist products. But Kenyaˇ¦s natural environment, cultural diversity and the people themselves have the potential to give the country distinctiveness. The long-term tourism development strategy could be based on the following elements:

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