Discussion Paper No. 121 of 2010 on A Panel Data Analysis of the Determinants of Tourism Destination Competitiveness: Kenya and Compactor Countries in Africa

Abstract

This study analyzes the determinants of tourism destination competitiveness using panel data for the period 1980 to 2008, based on an augmented version of an empirical model by Craigwell (2007). The analysis is based on secondary data for six countries: Kenya, Egypt, Morocco, South Africa, Tanzania and Tunisia. The data was transformed into logarithms before estimation. The results indicate that the elasticities of per capita income, technological advancement and tourism openness are positive and significantly affect destination competitiveness. The study finds evidence that tourism competitiveness can be enhanced through policy measures that favour tourism openness, such as visa fee waivers and technological advancement.