Login (DCU Staff Only)
Login (DCU Staff Only)

DORAS | DCU Research Repository

Explore open access research and scholarly works from DCU

Advanced Search

The Effects of Diminished Tourism Arrivals and Expenditures Caused by Terrorism and Political Unrest on the Kenyan Economy

Njoya, Eric Tchouamou, Efthymiou, Marina orcid logoORCID: 0000-0001-8611-5973, Nikitas, Alexandros and O'Connell, John F. (2022) The Effects of Diminished Tourism Arrivals and Expenditures Caused by Terrorism and Political Unrest on the Kenyan Economy. Economies, 10 (8). p. 191. ISSN 2227-7099

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.
Item Type:Article (Published)
Uncontrolled Keywords:tourism; economy; external shocks; terrorism; political unrest
DCU Faculties and Centres:DCU Faculties and Schools > DCU Business School
Publisher:MDPI AG
Official URL:https://www.mdpi.com/2227-7099/10/8/191
Copyright Information:Authors
ID Code:30119
Deposited On:02 Jul 2024 13:38 by Marina Efthymiou . Last Modified 02 Jul 2024 13:38

Full text available as:

[thumbnail of economies-10-00191-v2.pdf]
PDF - Requires a PDF viewer such as GSview, Xpdf or Adobe Acrobat Reader
Creative Commons: Attribution 4.0


Downloads per month over past year

Archive Staff Only: edit this record