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The Tourism Sector in Kenya - Coursework Example

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The paper "The Tourism Sector in Kenya" highlights that governments in both countries, the UK and Kenya, maintain statistics on overseas arrivals and departures, as well as on the destinations. In the UK the data is further segregated into business visitors and holidaymakers…
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The Tourism Sector in Kenya
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Introduction Tourists desire novelty and difference; they have a desire to explore exotic destinations. Thus choice of tourism destination depends upon tourists’ motivation and background (Espinoza, 1998). The UK tourists seek to explore destinations and the UK tops as the leading source of tourists to Kenya (ETN, 2011) but Kenya has been carrying an adverse image on the minds of the people. The tourism sector in Kenya has enjoyed periods of recovery such as in 2004, 2007 and 2010, but prolonged poor performance has raised the concerns of the stakeholders (Mayaka and Prasad, 2012). Strategic issues and challenges have undermined the competitiveness and sustainability of Kenya as tourism destination. Tourism destination has been defined as “a geographical region, political jurisdiction, or major attraction, which seeks to provide visitors with a range of satisfying to memorable visitation experiences” (Bornhost, Ricthie and Sheehan, 2010). A tourism destination must also seek to enhance the economic and social well-being of the residents within its boundaries. To be called a tourism destination it must also offer a wide range of activities and experience to the tourists. Kenya can be called a tourism destination as it is an attractive, and one of the most developed tourist destinations in Sub-Saharan Africa (Ayoo, 2007). As of 2007 Kenya had 29 National Parks and 29 National Reserves that together occupy about 7.5% of the country’s total area. Biodiversity ranging from marine parks, mountain, arid and semi-arid parks to ecosystems can be found at these parks. The Equator divides the country into almost two equal halves. The country has several attractions such as natural and cultural attractions such as game viewing, bird-watching, deep-sea fishing and mountain climbing, apart from being free of terrorism (Pennington-Gray et al., 2005). The diversity of physical landscape and scenery provide both beauty and variety to the country (Odunga, 2005). Wildlife and nature-based tourism is the greatest attraction for the tourists visiting Kenya. Tourism in Kenya grew over the years and became an important economic activity. However, the sector has been experiencing decline because it could not segregate mass tourism from eco tourism and sustainable tourism. The focus initially was on mass tourism but then the focus shifted towards attracting a niche segment or the upmarket segment (Odunga, 2005). This affected the image of Kenya as a tourist attraction. With another policy shift the focus was again on both mass tourism and the niche segment. The constant shifting of strategies has led to an adverse image of the destination. Tourism in Kenya is in the decline stage of the Tourism Area Life Cycle as product quality has declined. Effective promotion is needed to restore the image that Kenya as a destination carried. Situational analysis would help recommend a suitable promotional strategy to attract the UK tourists, comprising of a niche segment. 2. Situational Analysis An analysis of the macro environment or the external factors that influence tourism in Kenya would help develop the framework for promotion as well as the marketing objectives. 2.1 Environmental Analysis The country is undergoing political instability and political unrest. One of the major issues is the unequal distribution of resources such as land on which tourism depends. Some hold the view that while tourism consumes large resources the distribution of the revenue remains at the discretion of the central government, which often disregards the social and economic needs of the region (Mayaka and Prasad, 2012). The political situation in the country makes the tourism industry vulnerable to uncertainties and volatility. The tourism sector in Kenya contributes to 11 percent of the GDP but the global financial crisis further affected the political events, which resulted in reduced flow of tourists (Mayaka and Prasad, 2012). Tourism has reduced unemployment while maintaining balance of payments (Pennington-Gray et al., 2005). The recession exposed the vulnerability of Kenya tourism which is largely dependent on arrivals from Europe and the United States. International tourism is also vulnerable to factors such as adverse publicity, insecurity and poor infrastructure (Sindiga, 1996a). The drier northern part of Kenya is besieged with drought and hunger situations. Drought and poverty leads to conflicts between the local people and the wild life within the national parks and reserves (Mayaka and Prasad, 2012). Security in Kenya is also a major concern as other forms of tourism such as slum tourism and village tourism have emerged. High prevalence of HIV/AIDS is also a risk and human resource concern in tourist destinations. Internet technology can be used as a strategic tool by the travel agents and tour operators, but this has not really been exploited. Tourism in Kenya is dependent on healthy woody savannah, coastal, marine and forest ecosystems. Safeguarding the economic system is critical to the maintenance of adequate water supplies. Degradation of the coastal beaches and Kenya’s natural wildlife has been taking place due to unplanned tourism development (Mayaka and Prasad, 2012). Environmental challenges are responsible for destination decline. Lack of volumes of water has affected recreational activities. 2.2 Market Review 2.2.1 Destination Review In addition to the natural attractions and resources such as wild life parks and marine parks, Kenya also offers other tourist activities such as visits to tea and coffee plantation (Odunga, 2005). Cultural tourism is also an attraction that offers an insight into the present and past lifestyles of the people (Ondimu, 2002). Accommodation is highly developed along the beaches as well as the wild life area, suitable for the niche segment. Kenya has been promoting sustainable tourism and had also adopted the principles of ecotourism. Stakeholders’ interest was at heart when importance was given to local communities through community-based natural resources management (CBNRM) (IFRA, 2007). However, mass promotion of Masaai Mara has led to mass tourists being attracted to the destination. The destination has certain weaknesses such as the influence of western tourism has led to great resentment in the Muslim community (Sindiga, 1996). The activities include scant dressing, alcohol consumption, and prostitution. Tourism in Kenya has also failed to involve the local communities. The development of tourism has also led to segmentation of the society based on the socioeconomic class. Recreational activities have been affected due to lack of volumes of water. However, Kenya’s tourism sector has great potential and opportunities because of the emerging forms of tourism such as village tourism, rock art tourism and agritourism (Mayaka and Prasad, 2012). Kenya has destination competitiveness in the form of cultural and natural resources, but advantage can be leveraged through effective promotion. 2.2.2 Target Market Review The British are a scrupulous nation of Organized Explorers, according to the Expedia Travels Booking Report 2010 (cited in ACNielsen-ORG MARG, 2011). They book their flights and hotels three months before departure. In 2009 the UK residents made 58.6 million visits abroad (of which two-thirds are for holiday), which is a fall by 15 percent from the previous year. Kenya does not feature among the top ten countries visited by the UK tourists (Appendix A). The UK travel and tourism market has felt the full impact of the global recession. The outbound travel and tourism market had experienced steady growth between 2005 and 2008 but it has been severely affected by the downturn (ETN, 2010). The coalition government in the UK has impacted the sector as well. Taxes and duties are being revised and financial protection is being extended to a large number of holidaymakers. In 2011, 203,920 British nationals visited Kenya according to the Kenya Tourist Board (Foreign & Commonwealth Office, 2012). The UK tourists prefer a beach and safari break but Kenya is broadening its appeal and is offering a range of eco destinations, which is appealing to the UK tour operators who want to offer diverse products to their customers (Perrett, 2008). The British are highly individualistic and seek happiness through personal fulfillment (Hofstede, n.d.). They are self-confident and intellectually curious and according to Plog (2001), such people have a strong desire to explore the world of ideas and places. However, following the killing of a British couple in Kenya in 2011, the Foreign and Commonwealth Office (FCO) has been issuing warnings to stay away from certain areas in Kenya (Gordon, 2011). After this incident the number of UK tourists visiting Kenya has reduced. If the British tourists travel against the FCO advice, the travel insurance is invalidated (Bowes, 2011). However, as security has stepped up in Kenya, most of Kenya including the Masaai Mara and the major reserves has been declared safe. This led to an increase in booking for Kenya from the UK. Travelers concerned about safety prefer escorted trips but the UK tourists recognize that travelling to developing countries involves an element of risk. Most tourists from the UK book their tours through tour operators and these tour operators offer multiple destinations for safaris. This suggests the significance of targeting the tour operators in the promotion strategy. 2.3 SWOT Analysis Strengths Cultural and natural resources Wild life, Good accommodation, Great asset base, Entrepreneurial people, Geography and climate conducive to round-the-year tourism (Nyabiage, 2011). Weakness Inadequate Government tourism policy and regulatory issues, Lack of involvement of the local communities in tourism, Lack of planning, Western influence, Lack of capability of the educational sector to address national development goals for the development of tourism, resulting in lack of trained staff Tired product offering in need of upgrade and diversification, lack of funds (Nyabiage, 2011). Opportunities Growth of several other tourism products such as agritourism, village tourism and rock art tourism. Threats Ecological imbalance and degradation of the coastal beaches and Kenya’s natural wildlife Famine, drought, threat to security, diseases. Competition from alternate tourist destinations such as South Africa, the Far East and Asia (PwC, 2012), global financial uncertainties (Nyabiage 2011). The SWOT analysis suggests that the destination has several weaknesses as well is exposed to threats from competition as well as the environmental degradation. However, based on the strengths of the destination and opportunities, promotion can be devised to attract tourists from the UK to Kenya. 3. The Promotion Plan Since the image of Kenya has been impacted due to security reasons, it is essential to focus on enhancing the brand image as powerful and strong brands can derive competitive advantage (Hosany, Ekinci & Uysal, 2007). The image of the destination influences the choice process. Association with the brand can be created through three different ways – through direct experience with the product or service, from information sources or from inferences to pre-existing associations. 3.1 Marketing Objectives Marketing a destination has become challenging and to compete effectively it is essential to identify the critical success factors and these should be incorporated into the strategic planning (Baker and Cameron 2007). Image and identity play a vital role in differentiating between seemingly similar destinations. Thus branding of destinations has become crucial to marketing. The marketing objectives for Kenya would be: Specific To change the brand image of Kenya for the UK tourists, from a destination for safaris and wildlife to eco tourism, cultural tourism and village tourism To influence the members of the travel trade in the UK as they are a significant link to the UK consumers Measurable This implies that extensive brand building strategy should be taken up. Members of the travel trade should be brought in to Kenya for familiarization tour and supported with publicity material. Achievable These objectives are achievable because Kenya has variety of attractions and can derive competitive advantage. The UK government is warning only against a certain zone in Kenya and hence with the support the travel trade, they can achieve in changing the brand image. Realistic The objectives are realistic because the tourists from the UK seek precisely what Kenya has to offer. All it requires is the way it should be presented to them. Kenya is economy is dependent upon tourism to a large extent and hence it would be in the interest of the tourist authorities to exert efforts to achieve the marketing objectives. Timed The objectives are intended to be achieved over three years. 3.2 Marketing Strategy Based on Porter’s generic strategies, Kenya promotion should be based on focus and differentiation they should focus on one particular segment (the UK market) and offer uniquely differentiated product to the customers. Kenya should strictly avoid cost advantage strategies as they are based on mass marketing, mass production and mass consumption (Buhalis, 2000). Kenya should promote ecotourism and involve the private sector in Kenya as well as in the United Kingdom. Promotional Plan Today every destination offers excellent service and accommodation and every country claims unique culture and heritage (Morgan, Pritchard and Piggott 2003). Differentiation can be created through a unique identity to sustain competition in the global marketplace. Kenya should position itself as a unique destination focusing on eco tourism, village tourism and cultural tourism. Kenya should target the niche segment keen to explore village life rather than focus on the mass market keen to visit wildlife. Based on this target segment the nation should try to enhance the brand image of the destination. Image of a destination is owned by the tourists over which the DMOs have no control. Therefore to create brand awareness, DMOs have to focus on the slogans, taglines and logos which help the tourists in image formation (Munar, 2011). Mega trends and consumer behaviour is going to shape the future tourists, according to Yeoman, Munro and McMahon-Beattie (2006). The UK tourists are discerning and want to live and experience local. They come from a networked society where information is freely available. Hence, the promotion has to be realistic and not deceptive. Today consumers are well-travelled and educated and are keen to experience the destination. To manage a destination brand requires identifying the brand’s values and translating these values into an appealing personality (Morgan, Pritchard and Piggott 2003). Promotion should be such that visitors are able to experience the brand values and the authenticity of the unique place. Authentically Kenya should be the tag line used in all promotional material to promote Korea. 3.3 Promotion strategy User-generated content As consumer preferences and demands have changed, marketing of destinations too have to undergo change as consumers are no more passive customers (King 2002). The concept of promoting a destination to mass market is redundant and it is no more practical to rely on an outdated distribution system. Today customers need to be engaged and the DMOs need to effectively promote the destination to provide the experience that customers seek. Demographic and psychographic segmentation is no more feasible as customers decide how and where they access or purchase travel and tourism information and documents. Tourists tend to base their decisions on user reviews and harness the potential of internet technology. Hence, Kenya travel Authorities should encourage their travel partners in the UK to set up user forums on their websites. They should employ Web 2.0 tools as tourists extensively use this medium to gather information and share travel experiences (Munar, 2011). Web 2.0 enables user generated content (UGC) where the tourists upload information and share photographs through the Internet. Publicity Campaigns Publicity campaigns are usually undertaken by the destination marketing organization (DMO) to promote certain events or to target and develop new segments (Dore and Crouch 2002). Advertising targeting the travel trade is the most manifest form of promotion. Kenya should use the internet media and television media to target the end travelers but to target the travel trade, Kenya should target the trade magazines and newspapers. Personal selling should be executed through the travel trade in the form of training programs; familiarization tours for the members of the trade from UK should be conducted by Kenya. Personal selling can also be executed through call centres making direct calls to consumers. Publicity programs of destinations should be deliberate, planned, methodical, coordinated and have clear set of objectives. The image of destination Kenya is created in the minds of the consumers through the media, through the government agencies and through the travel agents and tour operators in the respective countries. The existing advertisements focus on nature-based tourism and wildlife safaris. The focus should now shift towards eco tourism and cultural tourism in Kenya. The same strategy should be adopted by the tour operators in the United Kingdom. Tourist education has become an integral part of tourism activity where tour operators play a vital role. Tour operators are the communicators of foreign culture and hence have to ensure that cultural identity and cultural heritage of the destination is maintained (Pennington-Gray et al., 2005). The promotional brochures distributed by the tour operators in the UK should carry information on responsible tourism. 3.4 Budgets Television advertising is the most expensive form of promotion while online forums the least expensive. In the first year 50% of the total budget should be used up of which 50% should be spent television advertising. This should be taken up only at the time of initial launch of a new product and then again during the peak season. Engaging customers through the social networking platforms would be the most effective as there is two-way communication; besides it is the least expensive. The rest of the allocated budget in the first year should be equally divided between promotional brochures, familiarization tours of the tour operators, and on print media. Some budget would also have to be allocated to revamping the website of Kenya Tourism. In the second and the third year, 25% each of the budget should be spent. The amount spent on print media should be increased while the television advertising should be reduced. 3.5 Evaluation of the marketing strategy The evaluation of the marketing strategy can be conducted through the hotel occupancy rates as well as from the airline bookings. Governments in both the countries, the UK and Kenya, maintain statistics on overseas arrivals and departures, as well as on the destinations. In the UK the data is further segregated into business visitors and holiday makers. These data would reveal if the marketing efforts have enhanced tourism business in Kenya. In addition, technology has made it possible to evaluate the website visitors. Hence it would be possible to determine to what extent technology has enhanced tourism to Kenya. To further evaluate the strategy and enhance customer service, regular customer feedback should be obtained at the point of service from the UK customers. This would help evaluate service gaps, if any. Feedback responses would enable the tourism destination to evaluate and then enhance its products and services to suit the customer needs. Satisfied customers would leave their feedback on forums and blogs of the tour operators or even on their own social networking platforms. The tourism authorities in Kenya should take both positive and negative feedback as important for the destination. Returning customers should be offered discounts on services. Word Count: 3138 References ACNielsen-ORG MARG. (2011) Study on Tourism in the Overseas Market of United Kingdom (UK). Ministry of Tourism, Government of India. Available from: http://tourism.gov.in/writereaddata/CMSPagePicture/file/marketresearch/studyreports/UK.pdf [Accessed 15 December 2012] Ayoo, C. (2007) Community-based natural resource management in Kenya, Management of Environmental Quality: An International Journal, 18 (5), pp. 531-541 Baker, M. and Cameron E. (2008) Critical Success Factors in Destination Marketing, Tourism and Hospitality Research, 8 (2), pp 79-97. Bornhost, T., Brent Ritchie, J.R. and Sheehan, L. (2010) Determinants of tourism success for DMOs and destinations: an empirical examination of stakeholders’ perspectives, Tourism Management, 31 (5), pp 572 – 589. Bowes, G. (Nov 04, 2011) Kenya: is it safe to go? The Guardian. Available from: http://www.guardian.co.uk/travel/2011/nov/04/travel-safety-advice-kenya-lamu [Accessed 15 December 2012] Buhalis, D. (2000) Marketing the Competitive Destination of the Future, Tourism Management, 21, pp 97-116. Dore, L. and Crouch, GI. (2002) Promoting destinations: An exploratory study of publicity programmes used by national tourism organisations, Journal of Vacation Marketing, 9, pp.137 Espinoza, ARR. (n.d.) Motivation of Nature Tourism. Available from: http://vidasilvestre.org.uy/wp-content/uploads/2012/08/Motivation-of-NAture-Tourism.pdf [Accessed 15 December 2012] ETN. (May 17, 2011) South Africa's surge threatens Kenyan tourism. Available from: http://www.eturbonews.com/22905/south-africas-surge-threatens-kenyan-tourism [Accessed 15 December 2012] ETN. (2010) 2010 is another difficult year for UK travel and tourism market. Available from: http://www.eturbonews.com/19361/2010-another-difficult-year-uk-travel-and-tourism-market [Accessed 15 December 2012] Foreign & Commonwealth Office. (2012) Sub Saharan Africa - Kenya. Available from: http://www.fco.gov.uk/en/travel-and-living-abroad/travel-advice-by-country/sub-saharan-africa/kenya1 [Accessed 15 December 2012] Gordon, S. (Sept. 12, 2011) Travel industry seeks to reassure travellers after Kenya kidnapping and murder. Mail Online. Available from: http://www.dailymail.co.uk/travel/article-2036549/Kenya-kidnapping-Travel-industry-tries-reassure-holidaymakers-British-couple-attacked-near-Lamu [Accessed 15 December 2012] Hosany, S., Ekinci, Y. and Uysal, M. (2007) Destination image and destination personality, International Journal of Culture, Tourism and Hospitality Research, 1 (1), pp. 62-81 IFRA. (2007) Continuity and Change in Kenyan Ecotourism Practices. MAMBO ! Available from: http://www.ifra-nairobi.net/mambo/IfraMambovol6_2.pdf [Accessed 15 December 2012] King, J. (2001) Destination marketing organisations – Connecting the experience rather than promoting the place, Journal of Vacation Marketing, 8 (2), pp 105 -108. Mayaka, MA. and Prasad, H. (2012) Tourism in Kenya: An analysis of strategic issues and challenges, Tourism Management Perspectives, 1, pp. 48–56 Morgan, NJ., Pritchard, A. and Piggott, R. (2002) New Zealand, 100% Pure: The creation of a powerful niche destination brand, Journal of Brand Management, 9 (4/5), pp 335–354. Munar, AM. (2011) Tourist-created content: rethinking destination branding, International Journal of Culture, Tourism and Hospitality Research, 5 (3) pp 291-305. Nyabiage, J. (Jan 24, 2011). Kenya: Tourism Sector 'Faces Major Setbacks'. Daily Nation on the Web. Available from: http://allafrica.com/stories/201101250006.html [Accessed 15 December 2012] Odunga, PO. (2005) Choice of Attractions, Expenditure and Satisfaction of International Tourists to Kenya. Available from: http://edepot.wur.nl/121685 [Accessed 15 December 2012] Ondimu, KI (2002) CULTURAL TOURISM IN KENYA. Annals of Tourism Research, 29 (4), 1036–1047 Pennington-Gray et al. (2005) Do US tour operators' brochures educate the tourist on culturally responsible behaviours? A case study for Kenya, Journal of Vacation Marketing. 11, pp. 265 Plog, S.C. (1974) Why destination areas rise and fall in popularity, Cornell Hotel and Restaurant Quarterly, 14 (4), pp 55-58. Perrett, M. (Aug 07, 2008) Africa: Kenya recovery continues as tourists return. Travel Weekly. Available from: http://www.travelweekly.co.uk/articles/2008/08/07/28417/africa-kenya-recovery-continues-as-tourists-return.html [Accessed 15 December 2012] PwC. (2012) Tourism. Available from: http://www.pwc.com/ke/en/industries/tourism.jhtml [Accessed 15 December 2012] Sindiga, I. (1996) International tourism in Kenya and the marginalization of the Waswahili, Tourism Management, 17 (6) pp. 425-432 Sindiga, I. (1996a) DOMESTIC TOURISM IN KENYA, Annals of Tourism Research, 23 (I), pp. 19-31 Yeoman, I., Munro, C. and McMahon-Beattie, U. (2006) Tomorrow’s: World, consumer and tourist, Journal of Vacation Marketing 12 (2), pp 174 – 190. http://geert-hofstede.com/united-kingdom.html Appendix A Top ten countries visited in 2009 (Figures in millions) Read More
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