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Phase II of KTF's Tourism Economic Research Approved
Author: Imelda Ndomo
Date: 18 Jan 17

Tourism contributes greatly to Government Revenue through license fees, customs and exercise duty, VAT on tourism services, landing fees, passenger service charge, entry fees to game parks as well as income tax levied on employees in the tourism industry.

Being essentially a service industry, tourism provides comparatively more jobs than other economic sectors. The sector's expansion therefore generates comparatively more job opportunities than an equivalent expansion in other economic sectors. Investments in tourism infrastructure and superstructure such as airports, hotels and restaurants, roads, information communication technology (ICT), power and water supply among others is shared with other economic sectors; spurring greater economic diversification.

Tourism stimulates demand for products and services across multiple sectors - Agriculture, Transport, Manufacturing, Building & Construction, ICT and Banking services - thus playing a key catalyst role in the economic transformation of Kenya,

 Phase II of 'Tourism Economic Research' by KTF Approved for Funding by Business Advocacy Fund (BAF)  
Since 2012, the Kenya's tourism sector has experienced a downturn, attributable to among others prohibitive policy regulations e.g. VAT on tourism services; negative perceptions of the destination security, amongst others. The private sector led by KTF has agreed with the government that sound policy interventions are necessary for the sector's revival. However, there is need to analyze the direct and indirect impacts of tourism on the economy to form a sound basis for policy reform. KTF wants to carry out the second phase of a tourism economic research to fill the gaps revealed in the first phase to advise its proposals to the government.

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