Impacts of Political Instability on Income and Employment in the Tourism Sector in Mombasa, Diani, and Malindi, Kenya
Keywords:
Political Instability, Income, Employment, Post-Election Violence, Coastal Kenya, Mombasa, Diani, Malindi, Tourism Sector, LivelihoodsAbstract
Political instability remains a major disruptor of tourism-dependent economies, particularly in destinations where livelihoods and employment rely heavily on visitor flows. In Kenya’s coastal region, Mombasa, Diani, and Malindi represent key tourism hubs that generate income and employment for hotels, tourism suppliers, and local communities. Despite their economic importance, these areas remain vulnerable to political shocks such as the 2007–2008 post-election violence and subsequent election-related tensions. This study examined the impacts of political instability on income and employment in the tourism sector in Mombasa, Diani, and Malindi, Kenya. The study was grounded on Political Risk Theory and Sustainable Livelihoods Framework. It adopted a case study research design and used a mixed-methods approach involving questionnaires, interviews, and focus group discussions. A sample of 284 respondents comprising hotel managers, tourism suppliers, and local community members was selected using purposive and simple random sampling techniques. Quantitative data were analyzed using descriptive statistics and chi-square tests, while qualitative data were analyzed thematically. Findings indicate that political instability significantly reduces tourism income through declining tourist arrivals, cancellations, and reduced occupancy rates in hotels. The 2007 post-election violence led to substantial revenue losses, business closures, and debt accumulation among tourism suppliers. Employment levels were also negatively affected through layoffs, salary reductions, and increased job insecurity across the tourism value chain. At the community level, instability resulted in widespread unemployment, loss of livelihoods, and increased socio-economic vulnerability. Statistical results confirmed a significant relationship between political instability and reduced tourism business performance (χ² = 10.977, p = 0.004). The study concludes that political instability exerts both direct and indirect adverse effects on tourism income and employment in coastal Kenya. Strengthening political stability and enhancing tourism resilience strategies are essential for safeguarding livelihoods and sustaining tourism-driven development in Mombasa, Diani, and Malindi.
References
Alon, I., & Herbert, T. T. (2009). A stranger in a strange land: Micro political risk and the multinational firm. Business Horizons, 52(2), 127–137. https://doi.org/10.1016/j.bushor.2008.10.001
Atlas Institute. (2019, January 27). How Kenya's tourism industry has felt the impact of terrorist attacks. https://atlasinstitute.org/how-kenyas-tourism-industry-has-felt-the-impact-of-terrorist-attacks/
Beirman, D. (2009). Tourism crisis and safety management. In Y. Wang & A. Pizam (Eds.), Destination marketing and management: Theories and applications (pp. 300–313). CABI. https://opus.lib.uts.edu.au/rest/bitstreams/3094be4e-801d-471d-9115-b8810a74d8c3/retrieve
Bouchet, M. H., Clark, E., & Groslambert, B. (2003). Country risk assessment: A guide to global investment strategy. John Wiley & Sons.
Brewer, T. L. (1981). Political risk in international business: New directions for research. Management International Review, 21(2), 5–12.
Buigut, S. (2018). Effect of terrorism on demand for tourism in Kenya. Journal of Conflict Resolution, 62(4), 836–857. https://doi.org/10.1177/0022002716659732
Buigut, S., & Amendah, D. D. (2015). The impact of terrorism on tourism in Kenya. Economics and Business Letters, 4(2), 53–62. https://doi.org/10.17811/ebl.4.2.2015.53-62
Carr, E. R. (2013). Livelihoods as intimate government: Reframing the logic of relief and recovery. World Development, 48, 89–103. https://doi.org/10.1016/j.worlddev.2013.03.014
Carter, J., & Garaway, C. (2014). Livelihoods and tourism in Kenya's coastal region. Tourism Geographies, 16(4), 599–616. https://doi.org/10.1080/14616688.2014.965269
Chambers, R. (1987). Sustainable livelihoods, environment and development: Putting poor rural people first (IDS Discussion Paper 240). Institute of Development Studies. https://opendocs.ids.ac.uk/articles/report/Sustainable_livelihoods_environment_and_development_Putting_poor_rural_people_first/26473510
Chambers, R., & Conway, G. (1992). Sustainable rural livelihoods: Practical concepts for the 21st century (IDS Discussion Paper 296). Institute of Development Studies. https://opendocs.ids.ac.uk/articles/report/Sustainable_rural_livelihoods_practical_concepts_for_the_21st_century/26473510
Chisadza, C., Clance, M., Gupta, R., & Wanke, P. (2022). Uncertainty and tourism in Africa. Tourism Economics, 28(4), 964–978. https://doi.org/10.1177/1354816620969998
Collinson, S., Elhawary, S., & Muggah, R. (2003). Politics, protection and livelihoods: A comparative analysis of the impact of humanitarian action on livelihoods in complex political emergencies. Humanitarian Policy Group, Overseas Development Institute.
Commission of Inquiry into Post-Election Violence. (2008). Report of the Commission of Inquiry into Post Election Violence. Government of Kenya. https://www.knchr.org/Portals/0/Reports/Waki_Report.pdf
Dangi, T. B., & Jamal, T. (2016). An integrated approach to "sustainable community-based tourism." Sustainability, 8(5), 475. https://doi.org/10.3390/su8050475
De Haan, L., & Zoomers, A. (2005). Exploring the frontier of livelihoods research. Development and Change, 36(1), 27–47. https://doi.org/10.1111/j.0012-155X.2005.00401.x
Department for International Development. (1999). Sustainable livelihoods guidance sheets. DFID. https://www.livelihoodscentre.org/documents/114097690/114438878/Sustainable+livelihoods+guidance+sheets.pdf/594e5ea6-99a9-2a4e-f288-cbb4ae4bea8b?t=1569512091877
Dupas, P., & Robinson, J. (2012). The (hidden) costs of political instability: Evidence from Kenya's 2007 election crisis. Journal of Development Economics, 99(2), 314–329. https://doi.org/10.1016/j.jdeveco.2012.03.002
Equal Times. (2014, July 22). Kenya: Tourism sector reeling in the wake of coastal terror attacks. https://www.equaltimes.org/kenya-tourism-sector-reeling-in
Fitzpatrick, M. (1983). The definition and assessment of political risk in international business: A review of the literature. The Academy of Management Review, 8(2), 249–254. https://doi.org/10.2307/257750
Gikonyo, J. (2024). Effect of political stability on international tourism in Kenya. International Journal of Modern Hospitality and Tourism, 4(2), 27–38. https://iprjb.org/journals/index.php/IJMHT/article/view/3058
Howell, L. D., & Chaddick, B. (1994). Models of political risk for foreign investment and trade: An assessment of three approaches. Columbia Journal of World Business, 29(3), 70–91.
Kabii, F. (2018). Kenya's resilient tourism industry survival strategies. Global Journal of Human Social Science, 18(2). https://globaljournals.org/GJHSS_Volume18/2-Terrorism-and-Tourism.pdf
Kenya National Bureau of Statistics. (2010). Economic survey 2010. Government of Kenya. https://www.knbs.or.ke/download/economic-survey-2010/
Mwangi, J. K. (2015). An Evaluation of Accommodation Challenges Faced by Seasonal Commercial Workers During Tourism Peak Season in Malindi Town, Kenya (Doctoral dissertation, Kenyatta University).
Kimani, J. (2021). Antecedents of travel advisories on performance of the hotel industry in Kenya: A case of five-star hotels in Nairobi County [Unpublished master's thesis]. https://www.researchgate.net/publication/385287457
Kinyanjui, J. (2014). The impact of terrorism on foreign direct investment in Kenya [Unpublished manuscript]. University of Nairobi.
Kiprono, S., & Buigut, S. (2018). Effect of terrorism on tourism demand. International Journal of Economics and Finance, 10(5), 1–15. https://doi.org/10.5539/ijef.v10n5p1
Kobrin, S. J. (1979). Political risk: A review and reconsideration. Journal of International Business Studies, 10(1), 67–80. https://doi.org/10.1057/palgrave.jibs.8490633
Lautze, S., & Raven-Roberts, A. (2003). Violence and complex humanitarian emergencies: Implications for livelihoods models (HPG Discussion Paper). Overseas Development Institute.
Lawton, T. C., Rajwani, T., & Doh, J. P. (2013). The antecedents of political capabilities: A study of ownership, cross-border activity and organization at home and abroad. Strategic Management Journal, 34(11), 1372–1389. https://doi.org/10.1002/smj.2074
Llorca-Vivero, R. (2008). Terrorism and international tourism: New evidence. Applied Economics Letters, 15(5), 365–367. https://doi.org/10.1080/13504850600706138
Manaliyo, J. C. (2021). The relationship between political risk and employment in tourism: A case of South Africa. Eurasian Journal of Social Sciences, 9(2), 78–88. https://doi.org/10.15604/ejss.2021.09.02.007
Masinde, B. K., Buigut, S., & Mung'atu, J. (2016). Modelling the temporal effect of terrorism on tourism in Kenya. International Journal of Economics and Finance, 8(12), 10–20. https://doi.org/10.5539/ijef.v8n12p10
Mayaka, M. A., & Prasad, H. (2012). Tourism in Kenya: An analysis of strategic issues and challenges. Tourism Management Perspectives, 1, 48–56. https://doi.org/10.1016/j.tmp.2011.12.008
Morse, S., & McNamara, N. (2013). Sustainable livelihood approach: A critique of theory and practice. Springer.
Murray, C. (2000). Livelihoods research: Some conceptual and methodological issues. Background Paper 5, Chronic Poverty Research Centre.
Muturi, E. (2021). Effect of post-election violence on the performance of tourism industry: A critical literature review. International Journal of Modern Hospitality and Tourism, 1(1), 21–32. https://iprjb.org/journals/index.php/IJMHT/article/view/1362
Neagu, O. (2017). The impact of terrorism on tourism in North African countries. Journal of Tourism and Hospitality Management, 5(2), 45–58. https://doi.org/10.15640/jthm.v5n2a5
Neumayer, E. (2004). The impact of political violence on tourism: Dynamic cross-national estimation. Journal of Conflict Resolution, 48(2), 259–281. https://doi.org/10.1177/0022002703262862
Ng'ang'a, J. K. (2018). International tourism receipts and economic growth in Kenya 1980–2013 [Unpublished master's thesis]. MPRA Paper No. 78110. https://mpra.ub.uni-muenchen.de/78110/1/MPRA_paper_78110.pdf
Njoya, E. T., & Seetaram, N. (2022). The effects of diminished tourism arrivals and expenditures caused by terrorism and political unrest on the Kenyan economy. Economies, 10(8), 191. https://doi.org/10.3390/economies10080191
Oetzel, J., & Oh, C. H. (2015). The impact of political risk on firm-level investments in the global renewable energy sector. Energy Policy, 78, 154–161. https://doi.org/10.1016/j.enpol.2014.12.016
People Daily. (2019, October 31). Malindi is no longer the beloved 'Little Italy'. https://peopledaily.digital/lifestyle/malindi-is-no-longer-the-beloved-little-italy
Republic of Kenya. (2024). Preliminary offering circular. https://mwangocapital.files.wordpress.com/2024/02/republic-of-kenya-preliminary-offering-circular-d_875476396.pdf
Robock, S. H. (1971). Political risk: Identification and assessment. Columbia Journal of World Business, 6(4), 6–20.
Root, F. R. (1968). U.S. business abroad and political risk. MSU Business Topics, Michigan State University.
Saha, S., & Yap, G. (2014). The moderation effects of political instability and terrorism on tourism development: A cross-country panel analysis. Journal of Travel Research, 53(5), 509–521. https://doi.org/10.1177/0047287513496475
Santana-Gallego, M., & Fourie, J. (2022). Tourism falls apart: How insecurity affects African tourism. Tourism Economics, 28(4), 995–1008. https://doi.org/10.1177/1354816620978128
Scheyvens, R. (1999). Ecotourism and the empowerment of local communities. Tourism Management, 20(2), 245–249. https://doi.org/10.1016/S0261-5177(98)00069-7
Scheyvens, R. (2002). Tourism for development: Empowering communities. Prentice Hall.
Scoones, I. (1998). Sustainable rural livelihoods: A framework for analysis (IDS Working Paper 72). Institute of Development Studies. https://opendocs.ids.ac.uk/articles/report/Sustainable_rural_livelihoods_a_framework_for_analysis/26473510
Simon, J. D. (1984). A theoretical perspective on political risk. Journal of International Business Studies, 15(3), 123–143. https://doi.org/10.1057/palgrave.jibs.8490485
Stone, M. T., & Nyaupane, G. P. (2017). Rethinking community-based tourism in protected areas: A case study of the Chobe Enclave, Botswana. Journal of Sustainable Tourism, 25(6), 838–855. https://doi.org/10.1080/09669582.2016.1247827
Tchouamou Njoya, E., & Nikitas, A. (2022). The effects of diminished tourism arrivals and expenditures caused by terrorism and political unrest on the Kenyan economy. Economies, 10(8), 191. https://doi.org/10.3390/economies10080191
TechMoran. (2015, January 12). Kenya's tourism industry counts losses of up to Ksh 40 billion. https://techmoran.com/kenyas-tourism-industry-counts-losses-of-up-to-ksh-40-billion/
The Conversation. (2024, May 29). How Kenya's tourism industry has felt the impact of terrorist attacks. https://theconversation.com/how-kenyas-tourism-industry-has-felt-the-impact-of-terrorist-attacks-110151
Thiongo, M., Mwangi, P., & Otieno, J. (2022). Types of political violence that influence tourism security in Mombasa and Nairobi Counties, Kenya (1992–2024): Exploring relationships and consequences. International Journal of Research and Scientific Studies. https://ijrss.org/index.php/ijrss/article/view/928
Tomazos, K. (2017). Egypt's tourism industry and the Arab Spring. In R. Butler & W. Suntikul (Eds.), Tourism and political change (2nd ed., pp. 141–160). Goodfellow Publishers. https://www.researchgate.net/publication/316049640
Tourism Review. (2018, September 24). Tunisia and Egypt rejoice over strong tourism sector numbers. https://www.tourism-review.com/tourism-sector-of-egypt-and-tunisia-celebrating-news10752
U.S. Department of State. (2009). 2009 Investment climate statement – Kenya. https://2009-2017.state.gov/e/eb/rls/othr/ics/2009/117490.htm
United Nations Development Programme. (2017). Journey to extremism in Africa: Drivers, incentives and the tipping point for recruitment. https://www.undp.org/publications/journey-extremism-africa
Usher, D. (1965). The economics of foreign aid. Aldine Publishing Company.
World Travel & Tourism Council & Global Rescue. (2019). Crisis readiness: Are you prepared and risk resilient to safeguard your people and destinations? https://www.globalrescue.com/grmkt_resources/pdfs/Crisis-Readiness-Final.pdf
World Travel & Tourism Council. (2019). Travel & tourism economic impact 2019: Kenya. https://wttc.org/Research/Economic-Impact
YaleGlobal. (2003, December 8). Terror takes toll on Kenya's tourism industry. Yale University. https://archive-yaleglobal.yale.edu/content/terror-takes-toll-kenyas-tourism-industry
Zenoff, D. B. (1967). Overseas investment. Council for International Progress in Management.
Downloads
Published
Issue
Section
License
This work is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License.
Authors must distribute contributions under the same license as the original.
