Assessing the competitiveness of tourism industry in kenya using porter’s diamond model
This study aimed at determining factors that influence the competitiveness of the Kenyan tourism sector in the global market. The study was a survey conducted on firms across the various types of firms in the Kenya tourism sector with data collected using Likert scales in a questionnaire. The analysis of the factors affecting performance revealed that performance among players in the tourism industry in Kenya were affected by lack of funds; poor road/infrastructure; the demand for services; competition from local rivals; high taxes and Government policies/regulations. The firms also indicated that performance was not seriously affected by competition from cheaper service providers; lack of research on improvements in the tourism nor old equipment. The factor conditions that drove the Kenya tourism industry were the presence of both skilled and non-skilled labour, the state of the roads which were poor and as a result significantly increased the cost of service provision. It was also indicated that a lot of capital was required to enter the industry. Location of the firms did not provide a strong advantage to some firm in service provision. The technological level in the industry was not seen as a strong driver of the industry. The tourist service providers were not perceived as operating effectively and efficiently. Demand conditions that were critical were that the potential of creating a strong local demand was huge and that the demand for tourist services is huge in the country despite the local consumer behavior not trending like in the global market. The firms felt that taxes by government added a significant cost to business, though, some policies by government helped make marketing tourism easier. Concerning firm strategy, structure and rivalry in Kenya tourism industry the companies that had been in the industry for a long had special advantages over other and that the localization of firms in one region had increased pressure in the industry to innovate. However, the tourist business environment in Kenya did not shape the structure, size and hierarchy of firms. On related and supporting industries, the cluster grouping of companies in common zones had not helped improve. Further, the work relation between the government, hotels, tour operators, travel agents, national parks, regulators and researchers was not strong.