Analysis of the Socio-Economic Factors Enhancing Competition and Competitiveness in the Tourism Industry in Kenya

This research pursues a twofold objective: (1) to identify uniquely differentiated tourism marketing products that have driven the rapid expansion and enhanced the competitiveness of Kenya’s tourism industry, and (2) to examine how the adoption of information technology has contributed to competitive advantage and improved the business environment.
This study contributes both academically and practically. Academically, it enriches tourism competitiveness and sustainable development literature by applying these frameworks to an African context. Practically, it provides evidence-based insights for policymakers, the Kenya Tourism Board, private operators, and communities to maximize tourism’s benefits while safeguarding sustainability.
Scholarly work highlights competitive strategy, the Diamond of National Advantage, and product differentiation as critical drivers of competitiveness in tourism, alongside technological innovation. Industry profitability is further shaped by Porter’s five competitive forces: (1) entry of new competitors, (2) threat of substitutes, (3) bargaining power of buyers, (4) bargaining power of suppliers, and (5) rivalry among existing firms. In Kenya, intensifying competition has stimulated technological adoption, product differentiation, and the use of value chain systems to improve efficiency and operational effectiveness.
The industry’s competitiveness has, in turn, led to the formulation of tourism policy frameworks, capacity development of professionals, and more intensive marketing. These efforts have enhanced Kenya’s unique product positioning, strengthened brand identity, and improved customer satisfaction, loyalty, and retention—key drivers of strategic positioning, long-term profitability, and sustained growth.
Both primary and secondary analyses affirm the government’s central role in shaping the industry through policy and regulatory frameworks, conservation and protection of wildlife, provision of strategic leadership, creation of a conducive business environment, and country branding.
This study adopts a deductive approach, with findings strongly aligning with the theoretical principles established in the literature review. Overall, the tourism industry continues to stand out as a key pillar of Kenya’s economic growth, contributing significantly to investment, job creation, and national competitiveness.