The Effects of Diminished Tourism Arrivals and Expenditures Caused by Terrorism and Political Unrest on the Kenyan Economy
The economic development of many countries globally relies heavily on tourism arrivals and spending. Terrorist attacks, political unrest, and other external shocks create disruptions and imbalances that lead to tourism crises with devastating effects on a country’s economy. The paper quantitatively...
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| Format: | Article |
| Language: | English |
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MDPI AG
2022-08-01
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| Series: | Economies |
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| Online Access: | https://www.mdpi.com/2227-7099/10/8/191 |
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| author | Eric Tchouamou Njoya Marina Efthymiou Alexandros Nikitas John F. O’Connell |
| author_facet | Eric Tchouamou Njoya Marina Efthymiou Alexandros Nikitas John F. O’Connell |
| author_sort | Eric Tchouamou Njoya |
| collection | DOAJ |
| description | The economic development of many countries globally relies heavily on tourism arrivals and spending. Terrorist attacks, political unrest, and other external shocks create disruptions and imbalances that lead to tourism crises with devastating effects on a country’s economy. The paper quantitatively examines the wider economic impacts and welfare effects of a continued decrease in tourism revenues caused by terrorism and political instability on the Kenyan economy. We use a dynamic Computable General Equilibrium model which we calibrate to a 2003 Social Accounting Matrix for Kanya. Our results reveal that a decrease in tourism spending causes a contraction of the economy in the short-term and long-term. Tourism contraction leads to decreased output, prices and wages in urban households, whereas the rural households notice an increase in welfare in the short and medium-term and a decrease in the long-term. Diversification of the tourism product, better branding, crisis management preparations and emphasis on domestic tourism that is less affected by disruption are ways to safeguard tourism in Kenya and beyond. |
| first_indexed | 2024-03-09T04:33:01Z |
| format | Article |
| id | doaj.art-8176c9e03f2346c6ac9a4e2989442210 |
| institution | Directory Open Access Journal |
| issn | 2227-7099 |
| language | English |
| last_indexed | 2024-03-09T04:33:01Z |
| publishDate | 2022-08-01 |
| publisher | MDPI AG |
| record_format | Article |
| series | Economies |
| spelling | doaj.art-8176c9e03f2346c6ac9a4e29894422102023-12-03T13:33:31ZengMDPI AGEconomies2227-70992022-08-0110819110.3390/economies10080191The Effects of Diminished Tourism Arrivals and Expenditures Caused by Terrorism and Political Unrest on the Kenyan EconomyEric Tchouamou Njoya0Marina Efthymiou1Alexandros Nikitas2John F. O’Connell3Huddersfield Business School, University of Huddersfield, Huddersfield HD1 3DH, UKBusiness School, Dublin City University, Dublin D9, IrelandHuddersfield Business School, University of Huddersfield, Huddersfield HD1 3DH, UKCentre for Aviation Research, School of Hospitality and Tourism Management, University of Surrey, Guildford GU2 7XH, UKThe economic development of many countries globally relies heavily on tourism arrivals and spending. Terrorist attacks, political unrest, and other external shocks create disruptions and imbalances that lead to tourism crises with devastating effects on a country’s economy. The paper quantitatively examines the wider economic impacts and welfare effects of a continued decrease in tourism revenues caused by terrorism and political instability on the Kenyan economy. We use a dynamic Computable General Equilibrium model which we calibrate to a 2003 Social Accounting Matrix for Kanya. Our results reveal that a decrease in tourism spending causes a contraction of the economy in the short-term and long-term. Tourism contraction leads to decreased output, prices and wages in urban households, whereas the rural households notice an increase in welfare in the short and medium-term and a decrease in the long-term. Diversification of the tourism product, better branding, crisis management preparations and emphasis on domestic tourism that is less affected by disruption are ways to safeguard tourism in Kenya and beyond.https://www.mdpi.com/2227-7099/10/8/191tourismeconomyexternal shocksterrorismpolitical unrest |
| spellingShingle | Eric Tchouamou Njoya Marina Efthymiou Alexandros Nikitas John F. O’Connell The Effects of Diminished Tourism Arrivals and Expenditures Caused by Terrorism and Political Unrest on the Kenyan Economy Economies tourism economy external shocks terrorism political unrest |
| title | The Effects of Diminished Tourism Arrivals and Expenditures Caused by Terrorism and Political Unrest on the Kenyan Economy |
| title_full | The Effects of Diminished Tourism Arrivals and Expenditures Caused by Terrorism and Political Unrest on the Kenyan Economy |
| title_fullStr | The Effects of Diminished Tourism Arrivals and Expenditures Caused by Terrorism and Political Unrest on the Kenyan Economy |
| title_full_unstemmed | The Effects of Diminished Tourism Arrivals and Expenditures Caused by Terrorism and Political Unrest on the Kenyan Economy |
| title_short | The Effects of Diminished Tourism Arrivals and Expenditures Caused by Terrorism and Political Unrest on the Kenyan Economy |
| title_sort | effects of diminished tourism arrivals and expenditures caused by terrorism and political unrest on the kenyan economy |
| topic | tourism economy external shocks terrorism political unrest |
| url | https://www.mdpi.com/2227-7099/10/8/191 |
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