EFFECT OF MICE TOURISM ON HOTEL PERFORMANCE IN THREE AND FOUR STAR RATED HOTELS IN MOMBASA COUNTY; KENYA

Abstract

MICE tourism product has been regarded as an important alternative revenue generator to many tourism destinations across the world. However, MICE tourism product in Kenya and their relationship with hotel performance has been hardly explored. Therefore, the main objective of this study was to examine the effect of MICE tourism on hotel performance in Kenya with focus on 3 and 4 Star Hotels within Mombasa County. The study adopted descriptive research design. The target population was 77 managers and the sample size was 65 from three and four star rated hotels in Mombasa County. Purposive and simple random sampling was used to identify the sample size. Questionnaires were used to elicit information from the respondents. Data collected was analysed using descriptive and inferential statistics with the aid of Statistical Package for Social Sciences (SPSS). Descriptive analysis was used to describe the data while inferential statistics specifically regression analysis was used to test the significant relationship between the variables under study. The findings showed that; Conferences (β3 = 0.350, p = 0.001), Events (β4 = 0.311, p = 0.001) and Incentives (β3 = 0.350, p = 0.001) had positive and significant effect on hotel performance at 95% confidence level. However Meetings (β1= 0.019, p = 0.812) was not significant. The study found out that incentives conferences and events have influence on hotel performance and concludes that the hotels should focus more on promoting MICE tourism with specific reference to the positive variables. The study further recommends that hotel managers need to understand the negative effect of meetings as a promotion tool with possible solutions. The study further concludes that incentives and conferences affect hotel performance with incentives having the highest influence. Therefore this study recommends that coastal hotels offering the service of MICE tourism product should ensure security and safety is given priority so as to attract more tourists. Also in terms of conferences, location and environment of the coastal hotel plays a key role in their choice to host conferencing. Lastly, hotel image is also an important attribute in hosting events and hotels should strive to create positive image.