Predictors of Length of Stay in the Tourism Industry in Kenya

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Date
2015-12
Authors
Magu, Judy Waithira
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Kenyatta University
Abstract
When tourists plan a holiday, a number of decisions must be made about different components of the trip like the choice of the destination, the type of the accommodation and means of transport. One of the most important holiday characteristics to be decided is the length of stay. This variable has received little attention in literature, bearing in mind its effect on the income generated in tourist destination. Tourists who stay at their destination longer, visit more attractions and generate-more business for the destination than those who stay for shorter time ceteris peribus. Kenya's long term development blue print; Kenya Vision 2030,has identified tourism as one of the six sectors that will drive the economic growth to a double digit by the year 2030 leading the country to be globally competitive. Despite this fact, the tourism industry has been coupled by various challenges including travel advisory from the leading tourist market. Given the importance for destinations to have long stay tourism, it is necessary to undertake an in-depth analysis of this variable in order to identify exactly which factors affect the length of stay. This will provide the necessary tools to allow the relevant bodies involved in destination planning and management to attract tourists who can prolong their stay. The purpose of this study was to identify those variables that influence tourists' length of stay at the destination so as to increase the revenue collected from tourism to achieve the intended goal of contributing to economic growth. Uncovering the determinants of length of stay is critical to the design of marketing policies that promote longer stays, associated with higher occupancy rates and revenue streams. Also the models of length of stay are important to the research on sustainable tourism since they are useful in forecasting tourists' on site time and the stress on local resources caused by tourism activity. This study estimated the demand of length of stay in the tourism industry in Kenya using Generalised least square (GLS) estimation technique for data covering for the period 1980 to 2013. The results suggest that tourist's incomes (Yit), holiday visitors (Hvist.), price of accommodation (Paccj) are important factors determining the length of stay in the tourism industry in Kenya. Tourist's income and holiday visitors have positive relationship with length of stay while price of accommodation, and terrorism in Kenya have a negative relationship. The results confirm the expected signs of positive relationship between length of stay and tourist's income, holiday visitors as well as negative relationship between the length of stay price of accommodation and terrorism in the tourism industry in Kenya.
Description
A Research Project Submitted to the Department of Economic Theory, School of Economics in Partial Fulfilment of the Requirements for the Award of the Degree of Master of Economics (Policy and Management) of Kenyatta University
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