Research methodology, Data analysis, conclusion and recommendation
Name
ACCT 6600 - Managing Operational and Financial Business Risks
Walden University
2022
CHAPTER THREE
3.0 RESEARCH METHODOLOGY
This chapter describes explanatory research design that was used and the methodology that was
employed in the study .This includes the target population, sample population, sampling
techniques and method of data collection and analysis.
3.1 Research design:
A research design is the arrangement of conditions for collection and analysis of data in a
manner that aims to combine relevance to the research purpose (Mugenda, 2003). A case study
was the source of secondary data needed; this involved collecting empirical data generally from
only one or a small number of cases.
This study was conducted through explanatory research design .This is considered appropriate
because the study desired to establish causal explanation on the factors that affect the hospitality
tourism enterprises. It was also considered due to its ability to provide information on which
factors work best empirically, and help explain factors accessibility to loans. Kothari (2004)
outlines some of important advantages of this design. Being an exhaustive study of a social unit,
the method enables us to understand fully the behaviour pattern of the concerned unit.
3.2 Target population:
Target population regards a group of members of real set persons, events or objects as to which a
researcher is willing to generalize the results of the research study (Mugenda, et. al, 1999). The
population for the study was investors, managers, supervisors and support staff in both hotels and
restaurant in the Eldoret Municipality. This implies the study targeted about 117 respondents.
The researcher targeted 15 investors, 25 managers, 32 supervisors and 45 support staff. The
researcher settled on this target population because selecting a huge number of respondents
would give unreliable and ambiguous information.
Figure 3.1 Target Populations.
Category Target population
Investors 15
Managers 25
Supervisors 32
Support staff 45
Target population 117
3.3 Sample size and sampling technique:
The restaurants and hotels were selected using stratified random sampling. Stratified sampling is
a probabilistic sampling techniques in which the study object are first divided into groups and
then a sample is selected from each group (mugenda and Mugenda (2003). The methods of
choosing the subject are appropriate because the population of interest is not homogeneous in the
sense that there are represented based on population ration. Eldoret municipality has six locations
which were considered appropriate to focus on in the study. The locations are Kiburgen,
Chepkoilel, Pioneer, Simat, Kapsoya, and Kapyemit. The researcher adopted the Mugenda
(2003) argument that any sample of above 30 % of the respondents is able to display the
attributes of the total population.
Table 3.1 Sample Size.
Category Target population Procedure Sample size
Investors 15 30*15 5
Managers 25 30*25 8
Supervisors 32 30*32 6
Support staff 45 30*45 14
Target population 117 33
3.4 Data Collection Methods and Procedures.
i). Types of Data
Both primary and secondary data were utilized for the study. The primary data was collected by
use of questionnaires. Secondary data was collected from published materials and also from
obtained online sources and from books, journals and circulars.
ii).Data Instruments
The data for this study was conducted using questionnaires and observation methods. The
questionnaires were semi-structured, consisting of both mixes of closed and open ended
questions. According to Okombo et al (2006) questionnaires have the following advantages;
I. The permit respondent time to consider their response without interference from,
for example, an interviewer.
II. Cost: distributions of questionnaires to large number of people simultaneously are
very possible.
They permit anonymity according to Okombo (2006, anonymity increase the rate of
response and may increase likelihood that response reflect genuinely held opinions.
Often questionnaires are designed so that answers to question scored and summed to
obtain an overall measure of the attitudes and opinions of the respondent. The observation
methods will involve noting items of interest (physical facilities)
iii).Procedure
The questionnaires were self-administering because the respondent is administrators in the
schools. They are fully literate, majority of them are university degree holders. They are
responsible for guiding the development strategic of the implementation of the strategy.
3.5 Data Collection Instrument
Data was collected by the use of a questionnaire and document analysis.
Interview Schedule
An interview schedule is used during the personal interviews with key informants. According to
Nachmias (1996), a personal interview is a face to face interpersonal role situation in which the
interviewer asks respondents questions designed to elicit answers pertinent to the research
hypothesis. The researcher adopted what Nachmias (1996) refers to as “the schedule structured
interview” whereby questions, their wordings and sequence are fixed and are identical for every
interviewee. This was done to ensure that differences in responses were due to differences
between respondents and not variation in the interview.
This tool is found to be important for its ability to get qualitative information. It also enables to
clarify issues arising from the discussions (ibid).
The interview schedule for data collection was composed of open-ended questions. The
interviewer read the questions to the respondents from an interview schedule and wrote down
the answers as given by the respondents.
Questionnaire
A questionnaire consists of a number of questions typed in a definite order on a form or set of
forms. A questionnaire was semi-structured and was administered to the teachers, head of
departments, BOG members and schools heads. The researcher was required to administer some
of the questionnaires to the respondents and pick the same day and other s were left and picked
later (Kothari, 2004).
3.6 Justification of the study
Tourism is one of the most precious economical activities in Kenya. This activity is has been
faced with numerous challenges which among others include; poor roads leading to touristic site,
underdeveloped tourism sites, lack of proper marketing abroad. The findings of this research
project will be used by tourism stakeholders and the government in reviewing the existing
tourism policies and rectifying the existing problems to achieve the targeted tourism objectives
of receiving over five million tourists annually.
3.7 Data analysis and presentation
The data collected was analyzed using descriptive methods and inferential statistics. Descriptive
methods were used in analyzing qualitative data where frequencies and proportions were used in
interpreting the respondent’s perception of issues raised in the questionnaires so as to answer the
research questions in table’s format.
3.6 Reliability and Validity of Instruments
i)Reliability of instrument
Reliability is a measure of the degree to which a research instrument yields consistent result or
data often repeated Cronbach’s coefficient Alpha method was used to compute reliability. A
single test was administered to a sample of subject (3 schools). A score obtained in one item is
correlated with scores obtained from the other items in the instruments. Cronbach’s coefficient
Alphas is then computed to determine how well items in a set are positively correlated to one
another .The closer Cronbanch’s Alpha is to 1, the higher the internal consistency reliability i.e.
internal consistency reliability of measure used in the study will be considered to be good.
ii).Validity of the questionnaire
Validity is the accuracy and meaningfulness of inference which are based on research, result
(Mugenda and Mugenda 1999)
Essentially, validity is considered with establishing whether the questionnaire content is
measuring what it is supposed to measure. Validity is the degree to which the empirical measure
or several measure the concept accurately, measure the concept. Information technology experts
in the field will be used to validate the content employed in the questionnaire.
3.8 Limitation of the study
In conducting this study, several constraints are likely to be encountered. The major drawback
will be conducting the study within the time scheduled. This is because the time might be
inadequate to fully carry out the study. This may involve collection of data from the respondents.
The researcher might therefore need to seek assistance from an assistant researcher in order to
complete the task in time.
Another drawback is likely to be financial constraints in meeting the requirements of the study.
This shall involve the many travelling trips to be made together with the acquisition of other
necessary materials. The researcher shall then have to seek financial assistance from the family
members to pull through the exercise.
CHAPTER FOUR
DATA ANALYSIS AND PRESENTATION
4.0 Introduction
This chapter will discuss analysis of the data collected and presented in form of graphs and
tables. The information will be interpreted and discussed to establish the benefits of tourism
industry in a country, to assess factors that hinder growth in tourism enterprises, to establish the
effects financial support to tourism enterprises and to establish the relationship between tourism
development and financial institutions.
4.1 Background Information.
The study sought to establish the background of the respondents participating in the study with
an aim of ensuring that the population of the respondents was well represented in the study.
4.1.1 Gender of the respondents.
The researcher sought to establish the gender of the respondents with an aim of ensuring the
respondents were well represented for whole period of the research. The research findings were
recorded and tabulated in the table below for interpretation purposes.
Table 4.1 Gender of the Respondents.
Frequency Percentage
Male 21 64
Female 12 36
Total 33 100
The study revealed that 61% of the respondents were male while 39% were female.
Figure 4.1 genders of the respondents.
64
36
Percentage
Male
Female
From the study above, majority of the respondents were male as indicated by 64% of the results.
This could be attributed to the idea that the bulkiness of work to be done especially in the kitchen
department required high level of attentiveness and consistency which could be disrupted by
maternity leaves offered to female workers hence the firm opted to employ more men to fill the
gaps left by their female counterparts.
4.1.2 Age of the respondents
The researcher sought to establish the age of the respondents participating in the study with an
aim of ensuring the respondents were well distributed with relation to their age. The research
findings were tabulated as indicated in the table below for interpretation purposes.
Table 4.2 Ages of the Respondents.
Frequency Percentage
18-30 years 13 33
31-40 years 15 45
41-50 years 4 13
over 50 years 1 9
Total 33 100
The study indicates that for those aged between 31-40 years were represented by 41%, those
aged between 41-50 years were represented by 26%, those aged between 18-30 years were
represented by 23% while 10% for those aged over 50 years.
Figure 4.2 ages of the respondents.
Percentage
0
10
20
30
40
50 33
45
13 9
18-30 years
31-40 years
41-50 years
over 50 years
The research findings were interpreted to mean that the respondents were well distributed in
relation to their ages. The employees of the facility were mostly young people between the age
of 31-40 years which implies that the facilities prefers a young and energetic staff to carry out its
activities. Those aged between 41-50 years had enough experience at work and could pass the
same to those aged between 18-30 who were perceived as very young and inexperienced at work.
4.1.3 Education level of the respondents
The researcher sought to establish the education levels of the respondents participating in the
study with an aim of ensuring the respondents were well distributed with relation to their
education levels. The research findings were tabulated as indicated in the table below for
interpretation purposes.
4.3 Table education level of respondents
Frequency Percentage
Secondary 18 55
Tertiary level 9 27
University 5 15
Post graduate 1 3
Total 33 100
From the above study, 55% of the respondents had a secondary certificate, 27% had a tertiary
level of education, 15% had a university degree while 3% had a post graduate degree.
Figure 4.3 Education Levels of the Respondents.
Percentage
0
10
20
30
40
50
60
55
27
15
3
Secondary
Tertiary level
University
Post graduate
The findings indicated that majority of the respondents had secondary level of education as
shown 55% of the same. This might be attributed to the idea that majority of the workers
constituted the support staff who requires minimal level of education as compared to the
management who requires high level of education perhaps a degree and above. This level of
education was ideal and advantageous to the study because the respondents could read, interpret
and answer the questionnaire appropriately.
4.1.4 Departments of the respondents
The researcher sought to establish the departments of the respondents. The results were recorded
and tabulated as indicated in the table below for interpretation purposes.
Table 4.4 Departments of Respondents
Frequency Percentage
Administrators 3 9
Senior Managers 5 15
Department supervisors 9 27
Public Relations Officers 6 19
Support staff 10 30
Total 33 100
From the study above, 9% of the respondents represented the administration population, 15%
were senior managers, 27% came from the supervisory department, and 19% were from the
public relations department while the highest percentage came from the support staff with 30%.
Figure 4.2 Departments of the Respondents.
Percentage
0
5
10
15
20
25
30
9
15
27
19
30
Administrators
Senior Managers
Department supervisors
Public Relations Officers
Support staff
The above study indicates that majority of the respondents were from the support staff
department as indicated by 30% of the respondents who participated in the study. This might be
attributed to the idea that such tourism facilities require high level of manual job which requires
both skilled and unskilled labour from the support staff. Department supervisors too have to be
relatively high in number to enable proper delegation of duties to junior staff so that job quality
and effectiveness could be enhanced.
4.1.5 Duration of stay of the respondents.
The researcher sought to establish the duration of stay of the respondents. The results were
recorded and tabulated in the table below for interpretation purposes.
Table 4.3 Duration of Stay of the Respondents.
Year of stay Frequency Percentage
0-3 years 6 18
4-6 years 9 27
7-10 years 14 42
Above 10 years 4 13
Total 33 100
From the above study, 18% have stayed in this tourism facilities for between 0-3 years, however
27% have worked for between 4-6 years, 42% have worked for between 7-10 years while only
13% for above 10 ye
Figure 4.3 Respondents year(s) of service in the company
Percentage
0
5
10
15
20
25
30
35
40
45
18
27
42
13
0-3 years
4-6 years
7-10 years
Above 10 years
From the study, its apparent that majority of the workers have stayed in this facilities for about 7-
10 years as indicated by 42% of the respondents who concurred with this idea. This might be
attributed to the idea that there’s high retention of employees hence avoiding and shunning high
costs involved in training of newly recruited personnel.
4.2 Specific information
4.2.1 Benefits of Tourism Industry in a Country.
The researcher sought to establish the benefits of tourism industry in a country. The results were
recorded and tabulated in the table below for interpretation purposes.
Table 4.4 Benefits of Tourism.
E E Agree Disagree Total
Foreign exchange
E
Frequency E28 5E E33
Percentage E85 E15 E100
There is exchange of professionalism
and jobs.E
Frequency E7 26E E33
Percentage 21 E79 E100
Development of infrastructure
E
Frequency E25 8E E33
Percentage E76 24E E100
Enhances good governance of touristic
sites
E
Frequency E19 E14 E33
Percentage E58 E42 E100
Employment creation EFrequency E26 7E E33
Percentage 78 22 100
Form the above study, 85% agreed while 15% disagreed with the idea that tourism results to
foreign exchange, however, 21% agreed while 79% disagreed with the idea that there is
exchange of professionalism and jobs. nevertheless, 76% of the respondents agreed while 24%
disagreed with the idea that tourism enhances development of infrastructure, however, 58% of
the respondents agreed while 42% disagreed with the idea that tourism enhances good
governance of touristic sites, finally, 78% of the respondents agreed while 22% disagreed with
the idea that tourism leads to employment creation.
From the above study its apparent that tourism industry has diverse benefits, for instance tourism
leads to foreign exchange as indicated by 85% of the respondents who were for this idea. This
might be attributed to the idea that foreign tourists on holiday spend reasonable amount of
foreign currency while on holiday. This foreign money, usually converted to local currency
enables a country access the foreign money. However, a huge percentage disagreed with the idea
that there’s exchange of professionalism and jobs as indicated by 79% of the respondents. This
might be attributed to the idea that the once a tourist arrives in the country he expects to be
served by and treated by the people in the industry and hence does not provide jobs for the locals
abroad but just in the tourism industry inside the employees country. As per the majority of the
respondents who agreed that there’s creation of infrastructure as indicated by 76% of
respondents, tourism enhances creation of roads and refrastructure which combines both hotels
and airport. The revenue collected from this industry if well managed leads to high creation of
tourism components. Tourism enhances conservation of touristic sites as indicated by 58% of the
respondents who agreed. This might be attributed to the idea that the stakeholders of tourism
strive to conserve this touristic sites so that they can earn even more from this facilities. Tourism
too leads to greater job creation as indicated by 78% of the respondents. This might be attributed
to the idea that tourism affiliates like hotels, airports and even touristic sites themselves pose a
great potential of offering jobs to locals.
4.2.2Factors that hinder growth of tourism enterprises.
The researcher sought to establish the factors that hinder growth of tourism enterprises. The
results were recorded and tabulated in the table below for interpretation purposes.
Table 4.5 Factors Hindering Tourism Growth.
E E Agree Disagree Total
Mismanagement of tourism sites/ funds.
Frequency 27 6 E33
Percentage 82 18 E100
Untrained personnel Frequency 25 8 E33
Percentage 76 24 E100
Inaccessibility to the sites
Frequency 23 9 E33
Percentage 70 30 E100
Minimal marketing of attraction sites
Frequency 11 22 E33
Percentage 33 67 E100
Improper government policies. EFrequency 19 14 E33
Percentage 58 42 100
From the above study, 82% agreed while 18% disagreed with the idea that mismanagement of
tourism sites/ funds. However, 76% agreed while 24% disagreed with the idea that untrained
personnel hinder tourism growth. Moreover, 70% agreed while 30% disagreed with the idea that
there’s inaccessibility to the tourism sites. Furthermore 33% of the respondents agreed while
67% disagreed with the idea that there’s minimal marketing carried out on tourism sites. Finally,
58% agreed while 42% disagreed with the idea that there’s improper government policies put in
place.
From the study above, it’s apparent that mismanagement of tourism sites and funds has led
redundant growth of this industry as indicated by 82% of the respondents who agreed. This
might be attribute to the idea that there’s no proper follow up made on funds collected as revenue
and that this funds just ends in the pockets of a few rogue mangers who do not take any point in
maintaining the touristic sites using the collected funds from the parks and national reserves.
However untrained personnel to manage and man this sector are insufficient as indicated by 76%
of the respondents. This might be attributed to the idea that the government has not taken the
initiative of replacing the old guards employees with very minimal academic qualifications to
enhance new skills in the sector thus leading new ideas inadequacy. This too slows down tourism
growth. Inaccessibility to the tourism sites also hinders tourism growth as indicated by 70% of
the respondent. This might be attributed to the idea that the roads or human paths leading to this
sites are poorly maintained and that most of them are seasonal roads which are disrupted during
rainy seasons rendering them impassable and making the sites totally inaccessible. Majority of
the respondents disagreed with the idea that there’s lack of promotional strategies put in place as
indicated by 67% of the respondents who disagreed. This might be attributed to the idea that the
government has tried a lot to ensure that marketing and promoting Kenyan tourism sites abroad
is up to date especially during the reign of Najib Balala as the tourism minister. This led to
familiarizing of Kenyan tourism destinations hence leading high tourism turn over. Improper
government policies like charging high fees on locals could also leads to low domestic tourism
turnover.
4.2.2Effects of Financial Support to Tourism Enterprises.
The researcher sought to establish the effects of financial support to tourism enterprises. The
results were recorded in the table below for interpretation purposes.
Table 4.6 Financial Support to Tourism Enterprises.
E E Agree Disagree Total
Creation of accommodation facilities
Frequency 29 4 E33
Percentage 88 12 E100
High remuneration to tourism sector employees Frequency 9 24 E33
Percentage 27 73 E100
Improved quality of services.
Frequency 27 6 E33
Percentage 82 18 E100
Development of new sites.
Frequency 24 9 E33
Percentage 73 27 E100
Increased employment opportunities. EFrequency 20 13 E33
Percentage 61 39 100
From the above study, 88% agreed while 12% disagreed with the idea that financial support
leads to creation of accommodation facilities. However, 73% disagreed while 27% agreed with
idea that there are increased remunerations to tourism employees. Furthermore, 82% agreed
while 18% disagreed with the idea that financial support to tourism enterprises leads to
improved quality of services. Nevertheless, 73% of the respondents agreed while 27% disagreed
with the idea that there’s development of new sites. Finally, 61% agreed while 39% disagreed
with the idea that tourism funding leads to increased employment and job creation.
From the above study, its apparent that majority of the respondents were for the idea that
financial support to tourism enterprises leads to creation of accommodation facilities as
indicated by 88% of the respondents, this might be attributed to the idea that proper funding of
tourism enterprises leads creates a need to have more facilities to accommodate even a huge
number of clients or customers. On the contrary, the respondents were against the idea that
financial support leads to high salaries of tourism sector employees. This might be attributed to
the idea that the support this enterprises receives are majorly meant for investment purposes and
growth of facilities and that remunerations will only result after realising reasonable turn over
and profits for this facilities. Majority of the respondents were for the idea that financial support
to tourism enterprises leads to improved quality of services as indicated by 82% of the
respondents who were for this idea. This might be attributed to the idea that financial input to
this sector leads to good and quality facilities accorded to visitors who in turn enjoys the
serenity of the environment and value for their money. Funding of tourism enterprises leads to
development of new site as indicated by 73% of the respondents who were for this idea. This
might be attributed to the idea that there are many sites in the country that has been not
developed and hence financing people with environmental oriented minds could lead to uprising
of this tourism sites and hence creating of more touristic sites and facilities. Increased
employment will only arise if the money and finances given to these enterprises is put into
constructive use of expanding the tourism sector as indicated by 61% of the respondents who
were for this idea. Otherwise if the money could be mishandled no proper improvement could
be realised such like creation of employment.
4.2.4 Relationship between Tourism Development and Financial Institutions.
The researcher sought to establish the relationship between financial institution and tourism
enterprises, the results were recorded and tabulated in the table below for interpretation purposes.
Table 4.7 Tourism Development and Financial Institutions.
E E Agree Disagree Total
Tourism growth relies on financial
institutions.
Frequency 8 25 E33
Percentage 24 76 E100
Tourism sector receives a lot of cash from
these institutions of finance.
Frequency 12 21 E33
Percentage 36 64 E100
There’s close relationship between tourism
development and financial institutions.
Frequency 26 7 E33
Percentage 79 21 E100
International financial bodies have invested
heavily in tourism.
Frequency 24 9 E33
Percentage 73 27 E100
EFrequency 4 29 E33
Without these institutions tourism could be no
more. Percentage 12 88 100
From the above study, 76% disagree while 24% agree with the idea that tourism growth relies on
financial institutions. However, 64% disagree while 36% agree with the idea that tourism sector
receives a lot of cash from these institutions of finance. Furthermore, 79% agree while 21%
disagree with the idea that There’s close relationship between tourism development and financial
institutions. Nevertheless, 73% agree while 27% disagree with the idea that International
financial bodies have invested heavily in tourism. Finally, 88% disagree while 12% agree with
the idea that without these institutions tourism could be no more.
From the above analysis, it’s apparent that majority of the respondents disagree with the idea that
Tourism growth relies on financial institutions as indicated by 76% of the respondents who
disagreed. This might be attributed to the idea that tourism heavily relies on foreign visitors
rather than on financial institutions for growth. However, tourism sector does not receive or rely
on financial incentive rendered by these financial institutions as indicated by 64% of respondents
who were for this idea. Financial institutions usually have very tight regulations and high interest
rates that could otherwise lead to un productivity especially during the low tourism seasons. In
spite of all this, there’s close relations between financial institutions and tourism sector s
indicated by 79% of the respondents who were for this idea. This might be attributed to the issue
that financial institutions apart from just lending cash to tourism enterprises they too have
ventured in this lucrative business as form of investment. The responders were against the idea
that without this institutions tourism is no more as indicated by 88% of the respondents who
disagreed. This might be attributed to the idea that tourism at all times is an independent industry
that only requires the right infrastructure to kick off.
CHAPTER FIVE
5.0 SUMMARY OF FINDINGS, CONCLUSIONS AND RECOMMENDATIONS
5.1 Introduction
This chapter seeks to summarize the findings of the research, give a conclusion and
recommendation for the research, and further research suggestions.
5.1.1 Summary of the Findings
From the study above, majority of the respondents were male as indicated by 64% of the results.
This could be attributed to the idea that the bulkiness of work to be done especially in the kitchen
department required high level of attentiveness and consistency which could be disrupted by
maternity leaves offered to female workers hence the firm opted to employ more men to fill the
gaps left by their female counterparts.
The research findings were interpreted to mean that the respondents were well distributed in
relation to their ages. The employees of the facility were mostly young people between the age
of 31-40 years which implies that the facilities prefers a young and energetic staff to carry out its
activities. Those aged between 41-50 years had enough experience at work and could pass the
same to those aged between 18-30 who were perceived as very young and inexperienced at work.
The findings indicated that majority of the respondents had secondary level of education as
shown 55% of the same. This might be attributed to the idea that majority of the workers
constituted the support staff who requires minimal level of education as compared to the
management who requires high level of education perhaps a degree and above. This level of
education was ideal and advantageous to the study because the respondents could read, interpret
and answer the questionnaire appropriately.
The above study indicates that majority of the respondents were from the support staff
department as indicated by 30% of the respondents who participated in the study. This might be
attributed to the idea that such tourism facilities require high level of manual job which requires
both skilled and unskilled labour from the support staff. Department supervisors too have to be
relatively high in number to enable proper delegation of duties to junior staff so that job quality
and effectiveness could be enhanced.
From the study, its apparent that majority of the workers have stayed in this facilities for about 7-
10 years as indicated by 42% of the respondents who concurred with this idea. This might be
attributed to the idea that there’s high retention of employees hence avoiding and shunning high
costs involved in training of newly recruited personnel.
From the above study it’s apparent that tourism industry has diverse benefits, for instance
tourism leads to foreign exchange as indicated by 85% of the respondents who were for this idea.
This might be attributed to the idea that foreign tourists on holiday spend reasonable amount of
foreign currency while on holiday. This foreign money, usually converted to local currency
enables a country access the foreign money. However, a huge percentage disagreed with the idea
that there’s exchange of professionalism and jobs as indicated by 79% of the respondents. This
might be attributed to the idea that the once a tourist arrives in the country he expects to be
served by and treated by the people in the industry and hence does not provide jobs for the locals
abroad but just in the tourism industry inside the employees country. As per the majority of the
respondents who agreed that there’s creation of infrastructure as indicated by 76% of
respondents, tourism enhances creation of roads and refrastructure which combines both hotels
and airport. The revenue collected from this industry if well managed leads to high creation of
tourism components. Tourism enhances conservation of touristic sites as indicated by 58% of the
respondents who agreed. This might be attributed to the idea that the stakeholders of tourism
strive to conserve this touristic sites so that they can earn even more from this facilities. Tourism
too leads to greater job creation as indicated by 78% of the respondents. This might be attributed
to the idea that tourism affiliates like hotels, airports and even touristic sites themselves pose a
great potential of offering jobs to locals.
From the study above, it’s apparent that mismanagement of tourism sites and funds has led
redundant growth of this industry as indicated by 82% of the respondents who agreed. This
might be attribute to the idea that there’s no proper follow up made on funds collected as revenue
and that this funds just ends in the pockets of a few rogue mangers who do not take any point in
maintaining the touristic sites using the collected funds from the parks and national reserves.
However untrained personnel to manage and man this sector are insufficient as indicated by 76%
of the respondents. This might be attributed to the idea that the government has not taken the
initiative of replacing the old guards employees with very minimal academic qualifications to
enhance new skills in the sector thus leading new ideas inadequacy. This too slows down tourism
growth. Inaccessibility to the tourism sites also hinders tourism growth as indicated by 70% of
the respondent. This might be attributed to the idea that the roads or human paths leading to this
sites are poorly maintained and that most of them are seasonal roads which are disrupted during
rainy seasons rendering them impassable and making the sites totally inaccessible. Majority of
the respondents disagreed with the idea that there’s lack of promotional strategies put in place as
indicated by 67% of the respondents who disagreed. This might be attributed to the idea that the
government has tried a lot to ensure that marketing and promoting Kenyan tourism sites abroad
is up to date especially during the reign of Najib Balala as the tourism minister. This led to
familiarizing of Kenyan tourism destinations hence leading high tourism turn over. Improper
government policies like charging high fees on locals could also leads to low domestic tourism
turnover.
From the above study, its apparent that majority of the respondents were for the idea that
financial support to tourism enterprises leads to creation of accommodation facilities as
indicated by 88% of the respondents, this might be attributed to the idea that proper funding of
tourism enterprises leads creates a need to have more facilities to accommodate even a huge
number of clients or customers. On the contrary, the respondents were against the idea that
financial support leads to high salaries of tourism sector employees. This might be attributed to
the idea that the support this enterprises receives are majorly meant for investment purposes and
growth of facilities and that remunerations will only result after realising reasonable turn over
and profits for this facilities. Majority of the respondents were for the idea that financial support
to tourism enterprises leads to improved quality of services as indicated by 82% of the
respondents who were for this idea. This might be attributed to the idea that financial input to
this sector leads to good and quality facilities accorded to visitors who in turn enjoys the
serenity of the environment and value for their money. Funding of tourism enterprises leads to
development of new site as indicated by 73% of the respondents who were for this idea. This
might be attributed to the idea that there are many sites in the country that has been not
developed and hence financing people with environmental oriented minds could lead to uprising
of this tourism sites and hence creating of more touristic sites and facilities. Increased
employment will only arise if the money and finances given to these enterprises is put into
constructive use of expanding the tourism sector as indicated by 61% of the respondents who
were for this idea. Otherwise if the money could be mishandled no proper improvement could
be realised such like creation of employment.
From the above analysis, it’s apparent that majority of the respondents disagree with the idea that
Tourism growth relies on financial institutions as indicated by 76% of the respondents who
disagreed. This might be attributed to the idea that tourism heavily relies on foreign visitors
rather than on financial institutions for growth. However, tourism sector does not receive or rely
on financial incentive rendered by these financial institutions as indicated by 64% of respondents
who were for this idea. Financial institutions usually have very tight regulations and high interest
rates that could otherwise lead to un productivity especially during the low tourism seasons. In
spite of all this, there’s close relations between financial institutions and tourism sector s
indicated by 79% of the respondents who were for this idea. This might be attributed to the issue
that financial institutions apart from just lending cash to tourism enterprises they too have
ventured in this lucrative business as form of investment. The responders were against the idea
that without this institutions tourism is no more as indicated by 88% of the respondents who
disagreed. This might be attributed to the idea that tourism at all times is an independent industry
that only requires the right infrastructure to kick off.
5.2 Conclusions
The study indicated that tourism industry main benefit is that it is major source revenue to a
particular country. Foreign exchange derived from this industry is enough to run a countries
economy and improve all affiliated features related to tourism like infrastructure and
refrastructure. When income through foreign tourists is earned, job creation falls in place almost
automatically.
Mismanagement of tourism funds has been noted to be a major drawback in tourism growth. In
spite of having reasonable revenues from this industry, the money ends in the pockets of a few
greedy fellows who leave these sites under managed and uncatered for. This has been noted to be
a major problem that even leaves some touristic poorly marketed and hence resulting to
dissertation and even closure.
However, financial support that’s channeled to the right management can result to creation of
tourism facilities like hotels, theme parks and even maintenance of the existing facilities. In the
contrary tourism facilities does not completely rely on financial institutions for growth. This is
because some of the financial institutions might charge very high interests that might lead losses
to the low seasons of tourism activities.
5.3 Recommendations.
Having noted that tourism facilities play a crucial role in the development tourism enterprises,
the researcher recommends that;
i. The financial loans be made accessible to any entrepreneur willing to venture in tourism
related activities.
ii. The interests charged on these loans should be reasonably low to make repayments more
effective.
iii. Financial institutions should encourage conservation of nature through green campaigns
and aiming at sustainability.
5.4 Suggestions for Further Studies
Having concluded that financial institutions have a positive impact on tourism enter prises
development, the researcher therefore suggests the following studies to carried out;
1. Effects of proper financial management on tourism enterprises development
2. Effects of intensive marketing on tourism enterprises development
3. Effects of government policies on tourism enterprises development
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QUESTIONNAIRE
I am a student at the Nairobi university carrying out a research study on “EFFECTS OF
FINANCIAL INSTITUTIONS ON DEVELOPMENT OF TOURISM ENTERPRISES: A
CASE STUDY OF NORTH RIFT REGION, ELDORET MUNICIPALITY. The
information requested in this questionnaire is meant for academic purposes only and shall be
treated in confidence. Kindly assist in filling in the questionnaire.
PLEASE NOTE
a. The Information given on this questionnaire will be held in strict confidence and will be used
only for the purpose of the study.
b. If any of the questions may not be appropriate to your circumstance, you are under no
obligation to answer.
SECTION A: GENERAL INFORMATION
(Please tick where appropriate)
1. What is your gender?
Male Female
2. What is your age bracket?
20-30 years 30-40 years
40-50 years above 50 years
3. Currently what are your academic qualifications?
O’ level Tertiary level of education
Degree Masters
4. Department of the respondents
Administrators
Senior managers
Department Supervisors
Public Relations Officers
Support Staff
1. Duration of Stay of the Respondents.
0-3 years
4-6 years
7-10 years
Above 10 years
SECTION B
Specific information
1. What’s your opinion on the following statements regarding the benefits of tourism?
Agree disagree
Tourism results to foreign exchange.
There’s exchange of professionalism and jobs.
Development of infrastructure
Enhances good governance of touristic sites
Employment creation.
2. What’s your opinion on the following statements concerning the factors that hinder
growth of tourism?
Agree Disagree
Mismanagement of tourism sites and funds
Untrained personnel
Inaccessibility to the sites.
Minimal marketing of attraction sites
Improper government policies
3. What do you think on the following statements concerning the impact of financial
support on tourism enterprise development?
Agree disagree
Creation of more tourism facilities
High remuneration to tourism sector employees
There’s improved quality of services.
Increased employment opportunities
4. What’s your opinion on the following statements concerning the relationship between
tourism development and financial institutions?
Agree Disagree
Tourism growth relies on financial institutions
Tourism sector receives a lot of cash from these
institutions of finance
There’s very close relation between tourism development
and financial institutions.
International financial bodies have invested heavily in tourism
Without these institutions tourism could be no more.
