Tourism And Economic Growth In Kenya (2002-2011)

ABSTRACT

This research is set to investigate the relationship between tourism and economic growth in Kenya. Its objectives were; to establish the trend of Tourism in Kenya (2002- 2011, to establish the trend of GDP growth of Kenya (2002-2011), to investigate the relationship between Tourism and GDP growth in Kenya (2002-2011). The hypothesis of the study was there is no significant relationship between Tourism and GDP growth in

Kenya time series analysis such Correlation analysis, regression analysis mechanisms

were used. The trend of Tourism and GDP growth showed a general increase with percentages change of 80.65 and 66.1 percent respectively. Using the correlation, regression approach, there was a strong positive correlation between Tourism and GDP growth(r =0.927), there was also significant relationship between Tourism and GDP growth at 0.05 level of significance. In conclusion therefore both Tourism and GDP

growth has a general increase; there is a positive relationship between Tourism and growth in Kenya which agreed with Cortes Jimenez (2007) chang, Khamkaev and McAleer (2010 )Sequeire and Nunes (2008) study on Tourism and GDP growth and found a significant relationship this has implied that the Tourism plays a very important role in economic growth of Kenya.

Table of Contents

DECLEARTION

APPROVAL

DEDICATION

ACKNOWLEDGMENT

ACRONYMS v

LIST OF TABLES AND FIGURES vi

CHAPTER ONE

PROBLEM AND ITS SCOPE 1

1.1 INTRODUCTION 1

1.2 Problem statement 3

1.3 Purpose of the Study 3

1.4 Research objectives 3

1.5 Research Questions 4

1.6 Hypothesis of the study 4

1.7 Scope of the study 4

1.7.1 Content scope 4

1.7.2 Geographical Scope 4

1.7.3 Theoretical scope 4

1.7.4Time scope 5

1. 8. Significance of the Study s

1.9 Operational definitions 5

CHAPTER iWO 6

LITERATURE REVIEW 6

Concept, Ideas, Opinion from Authors/Expert 6

2.lTourism 6

2.2 Economic Growth 7

2.3 The relationship between Tourism and Economic Growth s

2.4 Conceptual frame work 9

vii

2.5 Theoretical studies 9

2.6 Related studies 10

CHAPTER THREE~~ 13

RESEARCH METHODOLGY 13

3.1 Research Design 13

3.2 Research Population 13

3.3 Sampling Technique 13

3.4 Research Instrument 13

3.5 Data Gathering Procedure and Source 13

3.6 Time Series Data Analysis 14

3.7 Limitations of the Study 15

CHAPTER FOuR~U,UflPfl,tU.,,,ØflUfl, ,,,D.,fløflflfl,fl..,n 16

PRESENTATION, ANALYSIS AND INTERPRETATION OF DATA..~,~16

4.1 The Trend of the Tourisms of Kenya (2002-2011) 16

4.2 The trend of the GDP growth in Kenya (2002-20 11) 17

4.3 The relationship between Tourism and GDP growth in Kenya (2002-2011) 18

4.3.1 Correlations analysis of Tourism and Economic growth of Kenya 18

4.3.2 Regression analysis of Tourisms and GDP growth in Kenya 19

CHPTER FIVE 21

DICUSSION, SUMMARY, CONCLUSION AND RECOMMENDATION 21

5.1 DICUSSION 21

5.2 SUMMARY OF FINDINGS 21

5.3 CONCLUSION 22

5.4 RECOMMENDATION 22

5.5 SUGGESTIONS FOR FURTHER RESEARCH 23

REFERENCE 24

APPENDIX I: Regress Economic growth BIN USD Tourism BIN USD 27

APPENDIX II: TIME FRAME 29

APPENDIX III: BUDGET 30