| dc.description.abstract | Though tourism is globally recognized as significant drivers of economic development and growth, its economic potential in Africa is dampened by income leakages which reduce its real contribution in promoting local socio economic welfare in Sub Sahara Africa. In Kenya, there is limited linkage between tourism sector and local economy of Kisumu County, which denies local people the opportunity to optimally benefit from tourism. A number of studies have been conducted mostly on determinants of local participation in tourism, but no study has been done on the influence of structural factors on tourism backward linkage with local economy of Kisumu County - a gap that the current study seeks to fill. The overall objective for the study is to analyse the influence of the structural factors on tourism backward linkage with local micro and small enterprises in Kisumu County. The specific objectives of the study were to establish the relationship between number of income streams within the tourist facilities and local purchase ratio; to analyse significant differences in average score profile amongst groups of local suppliers and explain probability of their sale exceeding government policy threshold of 30%; to model the effect of number of income streams, location, size, type and competition among tourism enterprises on local purchase ratio controlling for patronage rate and visitor length of stay ; to establish the moderating effect of levels of tourism business networks on the relationship between physical location of tourism firms, type of tourism firms and local purchase ratio ; and to analyse the interacting effect of tourism seasonality on the nexus between the size of tourism enterprise, patronage rate and local purchase ratio. The research design was cross - sectional field survey wherein the target population of 266 tourism enterprises were used, and from which a sample of 106 tourism enterprises drawn using proportionate stratified random sampling techniques. The respondents in the study were managers of tourism enterprises. The data was collected using self-administered questionnaires. The first objective was analysed using Pearson`s χ2 Statistics, and Cramer`s V statistics. In the analysis of the second objective multiple descriptive discriminant analysis and Linear probability model was employed; the third objective was analysed using Multiple regression analysis. Fourth objective was achieved using Three Way ANOVA or 3 x 3 x 2 Factorial design; multivariate analysis of variance based on a mixed design GLM model was adopted in the analysis of fifth objective. It was established that level of tourism business network affected relationship between location of tourism business and local purchase ratio but it did not affect the impact of type of tourism enterprises on the same. The number of income stream within tourism firm has no significant relationship with local purchase ratio. Local suppliers were differentiated by value of weekly supplies, promptness in making deliveries and long term relationship developed with tourist industry. The socio economic variables with significant effect on probability of exceeding 30% sale threshold included amongst others quality of supplies, number of supplier`s employees and frequency of weekly supply. Though seasonality had no moderating effect on the nexus between patronage rate and local purchase ratio, its effect on local purchase ratio depended on the size of tourism enterprises; lastly, all independent variables explained only 14.8% of variation in local purchase ratio. Local purchase ratio of tourism firms in rural areas exceeded those of Kisumu CBD and its outskirts. In conclusion, tourism backward linkages can be enhanced by collaborative strategies amongst tourism firms in rural areas and outskirts of Kisumu City and competitive strategies amongst the same in Central Business District. Product diversification at micro level has no effect on the local economy if linkage between tourism and local economy is weak. Value of supplies and sustained commercial relationship with tourist industry are amongst the key success factor in local supply business. The key contribution of the study is in creating understanding of the role of business network and tourism seasonality in moderating effect of business location and aspect of destination accommodation structure respectively on extent of tourism backward linkage with the local economy. Thus, the study advances the theory of business network and the perspective on tourism seasonality. | en_US |
