An Examination of the Contributions of Digital Technology Growth in Kenya on Access to Tourist and Travel Markets

Abstract

The world is in the midst of an all-purpose technological revolution based on information communication technology (ICT) which includes computers, computer software and telecommunications equipment. The rapid progress in ICT and its impact in the global economy have intensified in the recent years leading to a  new economic system that has attracted a great deal of interest. It has also raised debate on the extent of ICT diffusion and economic opportunities and challenges imposed by ICT on the developing world. The objective of the study was thus to examine the contributions of digital technology growth in Kenya on access to tourist and travel markets. The study was based on the hypothesis that: ICT penetration in Kenya significantly contributes to tourism and air travel market growth. Descriptive and econometric approaches were used.The study utilized time series data covering seven years collected from local and international sources. A series of regression equations were applied to test the hypothesis that: ICT penetration in Kenya significantly contributes to tourism and air travel market growth. The ordinary least squares method of regression was used to estimate the model and linear regression estimated the results. The study findings revealed that, digitally advanced tourist destinations like South Africa and Tunisia have better access to the global tourism and air travel market than Kenya which is less advanced in digital technology. Further, ICT development in Kenya has a significant statistical effect on air passenger arrivals in Kenya. Since air travel is closely related to tourism, this implies that ICT can open up the international travel market, thereby providing a strong potential for tourist market access. The study result shed light on strategic policy choices and initiatives that can be put in place to reduce the digital gap and open up tourist markets in Kenya.

Keywords: Information Communication Technology, Tourism Market Access, Travel Market Access, Econometrics, Time Series.