Contribution of Tourism Investments and their Impact on the Local Economies of Kenya: A Case Study of Nakuru County

Abstract

Tourism development stimulates growth by attracting foreign direct investment and building new facilities and partnerships. This study sought to establish the contribution of hospitality and tourism investments to the local economy of Kenya, taking Nakuru County as a case study. The study adopted a descriptive survey research design, accommodating qualitative and quantitative methods; both primary and secondary data. Purposive sampling was used to select 51 out of 151 tourism and hospitality investments in the study area. Secondary data were obtained from tourism and hospitality published and unpublished reports from government and non-governmental organisations. Quantitative data were analysed through descriptive statistics, content and regression analyses. Salaries of staff, park entry fees, and curio shops constituted 2%, 21.3% and 0.5%, respectively, of the total revenue generated in the study area. Regression analysis results indicate that tourism investment accounted for a 36.6% improvement in the economy, as shown by the values [R Square=0.366, F (1, 151) = 87.311, p<0.05]. Tourism and hospitality investments contributed Kshs 10.12 billion, which was 54% of Nakuru County's gross domestic product, showing that tourism and hospitality investments contribute significantly to the local economy and, by extension, to the country’s economy