Aviation, Tourism and Poverty Relief in Kenya: A Dynamic Computable General Equilibrium Model Analysis

Abstract

Using a dynamic micro-simulation Computable General Equilibrium model, this research shows that further liberalisation of air services in Kenya is likely to lead to substantial growth in tourist arrivals. Results indicate that tourism growth principally trickles down to the poor through increases in labour demand and in income. Tourism expansion also leads to a slight redistribution of income between rural and urban regions.