An Analysis of the Tourism Industry in Kenya

AN ANALYSIS OF THE TOURISM INDUSTRY IN KENYA

BY:

D61/66054/2013 – CLARINE MONYANGI BOWA

A GROUP ASSIGNMENT SUBMITTED TO DR. OGUTU

10TH APRIL 2014

TABLE OF CONTENTS

INTRODUCTION 3

KEY SUCCESS FACTORS (KSF) IN TOURISM INDUSTRY IN KENYA 4

1. Quality of service 4

2. Marketing 6

3. Technology 7

DRIVERS OF CHANGE IN THE TOURISM INDUSTRY IN KENYA 9

Development of new products; holiday packages 9

Open sky benefits and low-cost airlines 9

Government Initiatives 10

Changing Consumer Dynamics 10

Terrorism Threats 10

Hosting of International Events 11

Technological Advancements 11

Rising Poaching Cases 11

DOMINANT ECONOMIC FEATURES 12

COMPETITION IN THE TOURISM INDUSTRY 14

Intensity of competitive rivalry within the tourism industry 16

Threat of new entrants 16

Threat of substitute products or services 17

Bargaining power of customers (tourists) 18

Bargaining power of suppliers 18

REFERENCES: 20

INTRODUCTION

Tourism in Kenya has seen steady growth since independence. The sector slowed down in the 1990s, but it is currently the country's largest foreign exchange earner, followed by flowers, tea and coffee. Many travelers who visit Kenya are safari-bound tourists who go to visit the various tourist attractions in Kenya. African safari is what Kenya is renowned for and thus has come to be known as the heart of the African safari. Kenya has diverse wildlife and spectacular landscapes. The country occupies an area of 58,367 square kilometers, out of which approximately 44,359 square kilometers or 7.5 percent is wildlife conservation area. The existing system comprises of 21 National Parks, 4 National Marine Parks, 23 National Reserves, 5 National Marine Reserves and 1 Local Sanctuary. Some of the wildlife that can be seen in the National Parks and Reserves are lions, elephants, rhinos, buffaloes, wildebeests, zebras, kudus, elands, gerenuks, hyenas, baboons, Thomson's and Grant's gazelles, giraffes, bushbucks, waterbucks, leopards, cheetahs, hippos,...