Tourism Competitiveness in Eastern Africa: RCA and TTCI

Eastern Africa is home to strikingly beautiful landscapes, unique wildlife and exotic cultural heritage that create outstanding tourism appeal. Unfortunately, these attractive features do not always translate to high tourism revenues. This paper focuses on analyzing the relationships between tourism performance indicators—arrivals, revenues and the revenue-based revealed comparative advantage (RCA)—and compare them to the components of destination facilities and endowments measured by the Tourism and Travel Competitiveness Index (TTCI). The analysis concentrates on Ethiopia, Kenya, Uganda and Tanzania, using secondary data from 2005 to 2017. The methodology applies correlation analysis and panel regression. As the results show, the TTCI and RCA are negatively correlated, but the components of the TTCI have different relationships to the RCA. Natural heritage positively influences the RCA, while cultural resources do not. The higher RCA values are also enhanced by better tourism services and better ground travel infrastructure. Similar analyses have been performed for Europe and some Asian countries, but not for Eastern Africa. The novelty of the present research is the fact that natural heritage resources can contribute considerably to tourism revenues, while cultural resources are not utilized to their full potential in terms of tourism success.