WAMONO MOSES DESERTATION ON TOURISM GROWTH AND E-BANKING IN UGANDA.pdf

THE IMPACT OF E-BANKING ON TOURISM GROWTH IN UGANDA

BY

WAMONO MOSES

05/U/6670/PS

205018426

SUPERVISOR: MR. TURYAKIRA PETER

RESEARCH REPORT SUBMITTED TO THE FACULTY OF ARTS AS PARTIAL

FULFILLMENT OF THE REQUIREMENTS FOR THE AWARD OF THE DEGREE

OF BACHELOR OF TOURISM

MAKERERE UNIVERSITY KAMPALA

OCTOBER 2008

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DECLARATION

I, Wamono Moses, declare that this research report is my original work and has

not been presented for a degree award in any other University or Institution for

any award.

Signed______________________

WAMONO MOSES

Date_______________________

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SUPERVISORS APPROVAL

This is to certify that this research project titled “The Impact Of E-Banking on

Tourism Growth in Uganda” has been submitted for examination with my

approval as University supervisor.

Signed______________________

MR. TURYAKIRA PETER

Date_______________________

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DEDICATION

This piece of work is dedicated to; God who saved me, my family and friends and

to all those who have taught me from Nursery until completion of the University

level of education. Thank you for the job well done

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ACKNOWLEDGEMENTS

I want to say thank you….

To God, my love, my inspiration, my friend, counsellor, my saviour, my life, I

could go on forever, Lord, anything good from this work comes from you.

To my friends; I love you, each one of you has a special place in my heart, and all

the footprints of your love, care, compassion and comfort are embedded in my

heart.

To my supervisor Mr. Turyakira Peter, thank you for all the wisdom, knowledge

you have given to me, for your gracious help in this research, thank you again, may

God’s love continue shinning upon you and may He always carry you in the hollow

of his hand.

To: all my lecturers, Mr. Deus Kamunyu, Mr. Mugizi Frank, Mr Mukwaya, Ass.

Prof Nyakaana, Mr. Muhwezi Derek, Mr. Kimbowa Francis, Mr. Ahebwa Wilber,

Mr. Drama Richard, Mr. Rugumambaju, Ms Kelen, Mr. Twinomuhangi, Mr

Ahumuza, Ms. Sebaana, Dr. Oonyu, Mr Urban, Mr. Musoke, Ms. Aol. Jane

Francis, and Dr. Tom, among others who I have not mentioned. Thank You far the

tremendous job well done.

To: A special team of, Aunt Aisha, Karungi Esther, Nalumu Doreen, Isiagi Moses,

Kiyega Eddy for your support in typing, editing and your constant encouragement

that saw me through.

To: My church and fellowship, David’s fellowship, thanks for the care and

inspiration, thanks for believing in me, God bless you.

To: My course mates: Mwesigwa, Mduge, Koraho, Mbaga, Moshi, Chapkamoi,

Kwame, Nzabanabahiita, Jaku, Maaka; my compliments.

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Table of Contents DECLARATION ................................................................................................................. 2

SUPERVISORS APPROVAL ........................................................................................... 3

DEDICATION .................................................................................................................... 4

ACKNOWLEDGEMENTS ................................................................................................ 5

Table of Contents ................................................................................................................ 6

ABSTRACT ......................................................................................................................... 7

CHAPTER ONE ................................................................................................................. 8

1.0 Introduction and Background: ......................................................................... 8

1.1 Problem Statement ............................................................................................... 9

1.2 Purpose of the study ............................................................................................ 9

1.3 Research Objectives ............................................................................................. 9

1.4 Research Questions ........................................................................................... 10

1.5 Scope of the study .............................................................................................. 10

1.6 Significance of the study .................................................................................. 10

CHAPTER TWO............................................................................................................... 11

2.0 Literature Review ................................................................................................ 11

2.1 Introduction ......................................................................................................... 11

2.2 E-banking ............................................................................................................. 11

2.3 Tourism Growth .................................................................................................. 13

CHAPTER THREE .......................................................................................................... 15

3.0 Methodology ......................................................................................................... 15

3.1 Introduction ......................................................................................................... 15

3.2 Research Design ................................................................................................. 15

3.3 Study Population ................................................................................................ 15

3.4 Sample Size .......................................................................................................... 15

3.5 Sampling Techniques and Procedures .......................................................... 15

3.6 Data Collection methods and instruments:................................................. 16

3.7 Data Processing and Analysis ......................................................................... 16

3.8 Study Constraints .............................................................................................. 16

CHAPTER FOUR ............................................................................................................ 18

4.0 Presentation, Interpretation and Discussion of study findings.............. 18

4.1 Introduction ......................................................................................................... 18

4.2 Personal Data Findings ..................................................................................... 18

4.3 Findings from Travellers ................................................................................... 18

4.4 Findings from the Uganda Tourism Board .................................................. 20

4.5 Findings from the Bankers .............................................................................. 21

CHAPTER FIVE .............................................................................................................. 24

5.0 Summary, Conclusion and Recommendations .......................................... 24

5.1 Introduction ......................................................................................................... 24

5.2 Summary .............................................................................................................. 24

5.3 Conclusions.......................................................................................................... 25

5.4 Recommendations .............................................................................................. 26

5.5 Areas for Further Research .............................................................................. 27

5.6 References ............................................................................................................ 28

5.7 Appendices ........................................................................................................... 29

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ABSTRACT

The study was conducted to establish the relationship between E-banking and tourism growth

in Uganda.

The major objective of the study was to come up with a justification that E-banking is one of

the factors that are necessary for the growth of tourism in Uganda.

A sample size of 80 was determined using the formulae of Krajice and Morgan 1970. This

represented 100% of the targeted population. The study used both qualitative and quantitative

study techniques and data collection here was made possible by the use of questionnaires

which were based on the questions like: What E-banking components were being used in

Ugandan Banks? How effective were the E-banking support services? Making an assessment

of the effectiveness of E-banking activities in Uganda and examining the relationship

between E-banking and tourism growth: However according to the research, it was found out

that most of the E-banking users in Uganda are foreigners who are willing to continue using

the service if it is available in Uganda. E-Banking would help in igniting the saving culture

in Uganda there by enhancing travel in Uganda.

The major findings of the study were that 80% of the respondents preferred to use E-banking

to carry out monetary transactions while in Uganda. 100% of the banks agreed to the fact that

Ugandan citizen’s demand for E-banking services is moderate, 85% of the Uganda Tourism

board staff were willing to advise clients to use E-banking services while in Uganda and

100% of the banks in Uganda offer E-banking services to their clients

Finally, it was recommended that: Tourism and hospitality establishments should adopt E-

banking enhancement means like ATM machines; the masses should be educated about E-

banking and its dynamics. The bank networks should be wide spread in Uganda to enhance

tourism there. Banks should adopt telephone banking to reduce on incidences of internet

fraud and. As per the statistics, its foreigners who dominate the use of E-banking there fore,

Ugandan citizens should be encouraged to adopt the same and also improve on their travel

behaviour. Banks in Uganda should advertise more on the services that they offer to their

clients which will widen their clientele base and lastly, As banks continue to embrace E-

banking, they should also watch out on possibilities of any loopholes that some citizens and

travellers may use to break into the Automated Teller Machines and people’s account

databases thus banks should enhance their artificial intelligence server security systems

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CHAPTER ONE

1.0 Introduction and Background:

E-banking is defined as the automated delivery of new and traditional banking

products and services directly to customers through electronic, interactive

communication channels. E-banking includes systems that enable financial

institution customers, individuals or businesses, to access accounts, transact

businesses, or obtain information on financial products and services through a public

or a private network, including the internet. Customers access E-banking services

using an artificial intelligence electronic device, such as a personal computer (PC),

Personal Digital Assistant (PDA), Automated teller machines (ATM), kiosk or Touch

Tone telephone (Shultz, 1998)

With the advent of E-commerce, tourism products have become one of the most

traded items on the internet. Tourism products and services have been made

available through intermediaries, although tourism providers for example hotels and

airlines can sell their services directly. This has put pressure on intermediaries from

both on-line and traditional shops.

Growth however refers to a progressive change in a phenomenon, an increase, thus

tourism growth refers to the progressive increase in tourism receipts that a country

realizes over time this it can be both negative and positive.

There is a strong correlation between tourism expenditure per capita and the degree

to which tourists use E-banking services.

Tourism growth and E-banking are also related in such a way that, as the world gets

more technology influenced, travelers see a cause of moving to destinations that are

also keeping up the pace especially on the side of using E-commerce elements. For

example, the ATMs and credit card facilities as evidenced below where Uganda

tourism arrivals are being compared to those of Kenya who has a more developed

banking system

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Table 1: Comparison of Uganda and Kenya Visitor Arrivals, 2002-2006

Year 2002 2003 2004 2005 2006

Uganda 175,073 194,790 189,348 192,755 205,287

Kenya 812,418 863,960 944,333 965,935 973,516

Source, East Africa Statistical Abstract, June 2006

Such low tourism growth in Uganda could however be attributed to the insufficient

use of E-banking facilities and services.

1.1 Problem Statement

In the event of the absence of E-banking technology, Uganda will face limited tourist

inflow receipts, thus a necessity to carry out a study on E-banking and thereby

expose its impact on the tourism industry.

1.2 Purpose of the study

The purpose of the study was to find out the impact of E-banking on tourism growth

in Uganda.

1.3 Research Objectives

i. To find out the E-banking components that are being used in Ugandan

banks.

ii. To analyse the E-banking support services.

iii. To assess the effectiveness of E-banking activities in Uganda.

iv. To examine the relationship between E-banking and tourism growth.

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1.4 Research Questions

i. What E-banking components are being used in Ugandan Banks?

ii. How effective are the E-banking support services?

iii. Assess the effectiveness of E-banking activities in Uganda.

iv. Examine the relationship between e banking and tourism growth.

1.5 Scope of the study

1.5.1 Subject Scope

The study focused on E-banking and tourism growth as independent and dependent

variables respectively.

1.5.2 Geographical Scope

The study was conducted with in Kampala, the capital city of Uganda with a focus on

travellers to, Uganda tourism board and major banks

1.6 Significance of the study

The findings of the research will be beneficial to future researchers, who may have a

bias on E-banking and tourism growth.

The study too shall be relevant to tourism policy makers, academicians, bankers,

planers, and tourists.

The study is justified on the basis that the emergence of the E-banking concept onto

the tourism economic scene may provide awareness of the factors leading to tourism

growth in Uganda.

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CHAPTER TWO

2.0 Literature Review

2.1 Introduction

This chapter looks at reviewing of relevant literature including the definition of

tourism growth, E-banking and the factors determining demand for E-banking

respectively.

2.2 E-banking

E-banking has got a number of definitions forwarded by different scholars as

exposed below.

Pikkarainen, et al (2004, p. 224) defines E-banking as an internet portal, through

which customers can use different kinds of banking services ranging from bill

payment to making investments.

With the exception of cash withdrawals, E-banking gives customers access to almost

any type of banking transaction at the click of a mouse (De Young, 2001).

Indeed the use of the electronic media as a new alternative channel for the

distribution of financial services has become a competitive necessity instead of just a

way to achieve competitive advantage with the advent of globalization and fiercer

competition in the tourism industry, (Flavián, et al, 2006).

All banks using electronic channels as an additional mode or a bank using only the

internet as a delivery channel are now on equal footing to offer their banking services

on the internet and to compete for customers around the world. As (Karjaluoto et al,

2002, p.261) put it, this could be the reason why the internet is widely seen as the

most important delivery channel in the era as E-Banking is beneficial for both the

provider and the customer.

The rationales of banks’ usage of the internet banking technology from the bank’s

perspective are mainly related to cost savings (Robinson 2000, Sathye 1999).

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Banks use online banking as it is one of the cheapest delivery channels for banking

products (Pikkarainen et al., 2004).

Such service also saves the time and money of the bank with an added benefit of

minimizing the likelihood of committing errors by bank tellers (Jayawardhena et al,

2000).

E-banks offer services regardless of geography and time and banks thus provide its

services to the customers for them to use at their convenience. As (Karjaluoto et al,

2002, p. 261) argue, banking is no longer bound to time and geography. Customers

over the world have relatively easy access to their accounts, 24 hours per day, and

seven days a week. The author further argued that, with E-banking services, the

customers who felt that branch banking took too much time and effort are now able

to make transactions at the click of their fingers in their convenience.

Robinson (2000) believes that the supply of E-banking services enables banks to

establish and extend their relationship with the customers.

There are other numerous advantages to banks offered by online banking such as

mass customization to suit the likes of each user, innovation of new products and

services, more effective marketing and communication at lower costs. (Tuchilla

2000), development of non-core products such as insurance and stock brokerage as

an expansion strategy, improved market image and better and quicker response to

market evolution (Jayawardhena et al, 2000) Benefits for the end users are

numerous as well and include convenience of the service in terms of the time saved

and globally accessible services, lower cost of transaction and more frequent

monitoring of accounts among others.

One factor that determines the level of demand for E-banking services is that of the

number of people having access to Internet. Moreover the cost and speed of internet

connections have also been argued to be important elements (see Li & Worthington,

2004; Sohail & Shanmugham, 2003).

Li and Worthington also argue that customer confidence on E-banking transactions

is yet another factor. This depends on how the banks would deal with any erroneous

transactional and security concerns that may occur during online banking. It is good

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to point out that Stewart (1999) claims that the failure of the Internet in retail

banking is largely attributable due to the lack of trust consumers have in the

electronic channels.

There are also several other theories relating to consumer behaviour what may

explain the rate of adoption and degree of acceptance of the use of the likes of

internet banking. Rogers and Shoemaker (1971) argued that consumer go through

several stages in knowledge conviction and decision confirmation before they finally

adopt a product of service.

Guiltinand et al, (1983) emphasized on the importance of awareness before adoption

of any innovative products. Interestingly as Doll, Raghunathan, Lim and Gupta

(1995) also claim that product information content on the web design and layout are

also important factors that affect customer satisfaction.

Sohail and Shanmugham (2003) further argued ‘that proper navigational attributes

and search facilities, leading to higher level of interactivity will have an impact on the

customer perception on user friendliness of the E-banking site.

Mattila and Mattila (2005) also claimed that security has been widely recognized as

one of the main barriers to the adoption of internet innovation following empirical

work on Finnish banking customers’ survey responses including both internet users

and non-users.

Based on the above discussion we conclude that consumers’ preference to adopt E-

banking is dependent upon the availability of Internet service and interestingly on a

number of several other social and psychological factors as well.

2.3 Tourism Growth

Growth however refers to a progressive change in a phenomenon, an increase, thus

tourism growth refers to the progressive increase in tourism receipts that a country

realizes over time this it can be both regressive and progressive.

There is no recognized definition of tourism growth worldwide due to the fact that

different scholars and countries have different ways of defining tourism growth.

(Alleyne, 2003)

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Tourism has emerged as one of the fastest growing industries in the developing

world; for Uganda in particular, it is the second single largest earner of foreign

exchange in Uganda and has significant linkages within the economy. However, the

industry is significantly influenced by external factors and susceptible to shocks.

With respect to the latter, the research study assesses the maturity of the tourism

product. Buttler (1980) identifies six stages of the tourism life cycle – exploration,

involvement, development, consolidation, stagnation and decline. The latter three

stages are the mature stages. The maturity of a tourism destination is therefore

characterised by the slowing and eventual decline in tourist arrivals in a context

where income growth in the major source markets have not tapered off. The maturity

of a destination is often characterised by four main events which include: image loss,

space loss, service loss and privacy loss

Crowding in resort areas is a common occurrence throughout the world. People

usually move into resort areas for employment opportunities thus leading to

increasing urbanisation and a stress on the infrastructure of the area. This is seen as

a negative tourist experience, which will result in low repeat visitors. This negative

perception can, to some extent, be corrected through creative marketing and

promotional activities.

The results show that tourism demand is predominantly explained by the income in

the source market. The price elasticity of Jamaica’s tourism demand, however, was

very small.

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CHAPTER THREE

3.0 Methodology

3.1 Introduction

This chapter deals with the approaches that were used to acquire the data required

for the study. The chapter looks at the research design, study population, sampling

procedure, data collection, data analysis and presentation, and constraints of the

study.

3.2 Research Design

The study used both qualitative and quantitative study techniques. The qualitative

research methods helped in obtaining responses about what respondents think and

feel about using electronic media in accessing travel services. The qualitative

methods included oral interviews and observations. They provided the insight into

the attitudes, motives and behaviours of the respondents.

3.3 Study Population

The study focused on a population of 100 people all randomly chosen from all walks

of life specifically concentrating in Kampala city.

3.4 Sample Size

A sample of 80 has been determined using the formulae of Krajice and Morgan 1970.

3.5 Sampling Techniques and Procedures

Table 2: Selection of respondents

Category Population Respondents Percentage

Travellers 60 40 50%

Bankers 20 20 25%

UTB 20 20 25%

Total 100 80 100%

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3.6 Data Collection methods and instruments:

Questionnaire method

This method was used in a way that the researcher prepared the questions that would

involve both open-ended and close-ended questions related to the variables in focus.

Secondary sources

Secondary data sources were used for example, the internet, library text books,

magazines, reports, newsletters, newspapers and the brochures from relevant places.

3.7 Data Processing and Analysis

Data processing and analysis was done by the use of data analysing software

packages like Microsoft Excel and Microsoft Access.

3.8 Study Constraints

The timeframe that was available from the preparation of the research proposal to

the time for collecting data was limited for the collection of data. During the data

collection, the respondents were likely to keep postponing the dates of submitting the

answered questionnaires. This problem was be solved by use of instant interviews.

Language barrier was likely to arise as some foreign visitors and residents were not

able to answer the questions in English and some preferred using their mother

languages. This was be overcome by hiring translators.

There was a problem of reluctant and arrogant respondents who refused to answer

the questions intentionally or disclosing the information. These respondents gave the

excuses of lacking time to answer the questions in the timeframe given were then

asked to identify another potential respondent and a close follow-up of the

questionnaire will be activated.

Transport costs were high since the place in which the research was being carried

was far away from the researcher’s residence and since the research involved

travelling in the whole district which the topic covers. The costs also included those

of the materials and equipment that were used in the collection of data like

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photocopying and printing of the questionnaires. This issue was solved through the

use of funds that were provided from my parents at home.

Sensitivity of research information where by the respondents feared to disclose the

information taking it to be confidential for example visitors’ names. This problem

was solved by letting the respondents know that the data that they were giving to the

researcher was totally confidential.

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CHAPTER FOUR

4.0 Presentation, Interpretation and Discussion of study findings

4.1 Introduction

This chapter presents the findings of the study based on the responses from the

questionnaires administered to the three different interest groups. The

questionnaire for the travellers had a total of 12 questions to be administered to a

total of 60 respondents. The questionnaire for the bankers had a total of 12

questions to be administered to a total of 20 respondents. The questionnaire for the

Uganda Tourism Board Staff had a total of 14 questions to be administered to a

total of 20 respondents; this however was a sample population. All questionnaires

that were administered were returned.

4.2 Personal Data Findings

Out of this sample, most of the respondents were males indicating that more males

than females are engaged in travel

Sex Value (100%)

Males 60%

Females 40%

13.3% of the respondents were secondary school/high school students, 66.6% of the

respondents were university students and 20% of the respondents were post

graduate students.

4.3 Findings from Travellers

According to the research that was carried out, 2% of the respondents were from

Germany, 7% of the respondents were from Rwanda, 18% of the respondents were

from Kenya, 17% of the respondents were from Tanzania, 15% of the respondents

were from the United States of America, 3% of the respondents were from south

Africa, 3% of the respondents were from Sudan, 3% of the respondents were from

The Democratic Republic of Congo, 3% of the respondents were from Israel, 2% of

the respondents were from Saudi Arabia, 2% of the respondents were from Brazil,

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2% of the respondents were from Cote d’ivore, 7% of the respondents were from

Mexico, 2% of the respondents were from Japan, 5% of the respondents were from

Canada, 8% of the respondents were from the United Kingdom, and 2% of the

respondents were from Libya.

80% of the respondents preferred to use E-banking means to carry out monetary

transactions while 20% of the respondents preferred not to use E-banking means to

carry out monetary transactions.

21.6% of the respondents said it was their first time to visit Uganda as a country and

78.3% of the respondents said it was not their first time to visit Uganda as a country.

10% of the respondents neither agreed nor disagreed on the convenience of E-

banking. 11.6% agreed that they would prefer to use E-banking because its

convenient, 68.3% strongly agreed to the fact that using e banking is convenient,

8.3% of the respondents strongly disagreed to the fact that using E-banking is a

convenient means of carrying out monetary transactions. 1.6% of the respondents

disagreed to the fact that using E-banking is a convenient means of carrying out

monetary transactions.

70% of the respondents strongly agreed that they would use E-banking because it is

fast. 10% of the respondents agreed that they would use E-banking because it is fast.

11.6% of the respondents neither agreed nor disagreed whether they would use E-

banking because it is fast, 8.3% of the respondents strongly disagreed that they

would use E-banking because it is fast.

28.3% of the respondents neither agreed nor disagreed that E-banking facilities in

Uganda are excellent, 10% of the respondents strongly disagreed that E-banking

facilities in Uganda are excellent, 41.6% of the respondents agreed that E-banking

facilities in Uganda are excellent, 18.3% of the respondents disagreed that E-banking

facilities in Uganda are excellent, 1.6% of the respondents strongly agreed that E-

banking facilities in Uganda are excellent.

36.6% of the respondents neither agreed nor disagreed that E-banking facilities in

Uganda are poor, 11.6% of the respondents strongly disagreed that E-banking

facilities in Uganda are poor, 5% of the respondents disagreed that E-banking

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facilities in Uganda are poor, 45% of the respondents agreed that E-banking facilities

in Uganda are poor, 1.6 of the respondents strongly agreed that E-banking facilities

in Uganda are poor.

46.6% of the respondents neither agreed nor disagreed that they have faced

difficulties in accessing E-banking services in Uganda, 10% of the respondents

disagreed that they have faced difficulties in accessing E-banking services in Uganda,

35% of the respondents agreed that they have faced difficulties in accessing E-

banking services in Uganda, 8.3% of the respondents strongly disagreed that they

have faced difficulties in accessing E-banking services in Uganda.

28.3% of the respondents neither agreed nor disagreed that they do not understand

the E-banking concept, 58.3% of the respondents strongly disagreed that they do not

understand the E-banking concept, 3.3% of the respondents disagreed that they do

not understand the E-banking concept, 6.6% of the respondents strongly agreed that

they do not understand the E-banking concept, 3.3% of the respondents agreed that

they do not understand the E-banking concept.

4.4 Findings from the Uganda Tourism Board

90% of the respondents have heard of E-banking before, and 10% of the respondents

have not heard of E-banking before.

60% of the respondents have heard of E-banking from banks, 20% of the

respondents have heard of E-banking from television stations, and 10% of the

respondents have heard of E-banking from radio stations.

95% of the respondents strongly agreed to prefer to use E-banking because it’s

convenient, 5% of the respondents neither agreed nor disagreed on whether they

would to prefer to use E-banking because it’s convenient.

95% of the respondents agreed to prefer to use E-banking because it’s fast, 5% of the

respondents neither agreed nor disagreed on whether they would to prefer to use E-

banking because it’s fast.

85 of the respondents neither agreed nor disagreed that E-banking facilities and

services in Uganda are excellent, 10% of the respondents disagreed that E-banking

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facilities and services in Uganda are excellent, 5% of the respondents strongly agreed

that E-banking facilities and services in Uganda are excellent.

15% of the respondents neither agreed nor disagreed that E-banking facilities and

services in Uganda are very poor, while 85% of the respondents agreed that E-

banking facilities and services in Uganda are very poor.

15% of the respondents neither agreed nor disagreed that they have faced difficulties

in accessing E-banking services in Uganda, while 85% of the respondents agreed that

they have faced difficulties in accessing E-banking services in Uganda.

5% of the respondents neither agreed nor disagreed that they do not understand the

E-banking concept, while 95% of the respondents strongly disagreed that they do not

understand the E-banking concept

5% of the respondents neither agreed nor disagreed that the current tourism growth

in Uganda is as a result of the emergence of better E-banking facilities, while 80% of

the respondents strongly agreed that the current tourism growth in Uganda is as a

result of the emergence of better E-banking facilities

75% of the respondents disagreed that the current tourism growth in Uganda is NOT

as a result of the emergence of better E-banking facilities, 15% of the respondents

neither agreed nor disagreed that the current tourism growth in Uganda is NOT as a

result of the emergence of better E-banking facilities, and 10% of the respondents

strongly agreed that the current tourism growth in Uganda is not as a result of the

emergence of better E-banking facilities

15% of the respondents neither agreed nor disagreed that they would encourage

every client they interact with, to use electronic means of monetary transactions

while in Uganda and 85% of the respondents strongly agreed that they would

encourage every client they interact with, and to use electronic means of monetary

transactions while in Uganda.

4.5 Findings from the Bankers

The banks that were included in the research were: Bank of Africa, DFCU, Housing

finance, Crane bank, Barclays bank, Post bank, Stanbic bank, Allied bank, Bank of

22

Baroda, Diamond trust bank, Bank of Uganda, Cairo international bank, Centenary

rural development bank, Citibank, East African development Bank, Tropical bank,

Orient bank, Standard chartered Bank, Kenya Commercial Bank, and UBA

100% of the banks all declared that they do offer E-banking services and facilities to

their clients.

100% of the banks all said that they do offer firewall configuration and management,

intrusion detection system (network and host-based), network administration,

security management, Internet banking server, E-commerce applications (e.g., bill

payment, lending, brokerage) and Internal network servers, automated decision

support systems as E-banking components at their banks.

100% of the banks all declared that they do offer E-banking support to their clients.

100% of the banks all said that they do offer, account aggregation, electronic

authentication, payments for E-commerce, bill payment and presentment, person-to-

person payments, account management, wireless E-banking, new account opening,

consumer wire transfers, investment/brokerage services, loan application and

approval, cash management, commercial wire transfers, small business loan

applications, approvals, or advances, business-to-business payments and employee

benefits/pension administration as E-banking support services.

100% of the respondents made a personal judgement that Ugandan citizen’s demand

for E-banking services was moderate

75% of the respondents said it was true that E-banking services and product users at

their bank are youthful travellers both citizens and foreigners and 25% of the

respondents said it was false that E-banking services and product users at their bank

are youthful travellers both citizens and foreigners.

100% of the respondents said it was true that E-banking services and product users

at their bank are included elderly travellers both citizens and foreigners.

100% of the respondents said it was true that E-banking services and product users

at their bank are business men: both citizens and foreigners,

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75% the respondents said it was false that E-banking services and product users at

their bank were majorly ladies both citizens and foreigners, and %25 of the

respondents said it was true that E-banking services and product users at their bank

were majorly ladies both citizens and foreigners.

75% of the respondents said it was true that E-banking services and product users at

their bank were majorly gentlemen citizens and foreigners, 25% of the respondents

said it was false that E-banking services and product users at their bank were majorly

gentlemen citizens and foreigners.

30% of the respondents said it was true that E-banking services and product users at

their bank were foreigners, 70% of the respondents said it was false that E-banking

services and product users at their bank were foreigners

90% of the respondents said it was true that E-banking services and product users at

their bank were Ugandans, 10% of the respondents said it was false that E-banking

services and product users at their bank were Ugandans

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CHAPTER FIVE

5.0 Summary, Conclusion and Recommendations

5.1 Introduction

This chapter focused on the summary, conclusion and recommendations from the

results presented in chapter four.

5.2 Summary

Based on the study objectives, 100% of the banks all said that they do offer firewall

configuration and management, intrusion detection system (network and host-

based), network administration, security management, Internet banking server, E-

commerce applications for example bill payment, lending, brokerage and Internal

network servers, automated decision support systems as E-banking components at

their banks.

All banks in Uganda do offer, account aggregation, electronic authentication,

payments for E-commerce, bill payment and presentment, person-to-person

payments, account management, wireless E-banking, new account opening,

consumer wire transfers, investment/brokerage services, loan application and

approval, cash management, commercial wire transfers, small business loan

applications, approvals, or advances, business-to-business payments and employee

benefits/pension administration as E-banking support services.

E-baking has been key in ensuring monetary security and safety in withdrawals as

Automated Teller machines and credit card machines are found in secure areas with

a level of privacy, E banking ensures pretty fast transactions thereby promoting

travel in Uganda. E-banking has had an impact on tourism growth in Uganda in such

a way that due to the increasing demand by the tourists and travellers to Uganda, the

service providers have chosen to improve their coverage and upgrade their facilities

to meet world standards as is currently evidenced in most of the Ugandan rural

towns that posses active tourist attractions.

Most travellers to Uganda come from already developed economies and expect to use

things like credit cards when here thus a need for E-banking services to be improved

25

and publicised more and better. It’s safer and much faster to withdraw money from

machines hence redeeming travel time. The more people travel and move, the more

the world becomes a global village thus easy spread of technology meanwhile the

greater impact of E-banking in Uganda is greatly determined by the visitor’s

perceptions together with those of the citizens of Uganda to the usage of E-banking

services and facilities. Therefore, there is need to provide a wide range of services

that can cover a vast extent of passengers expectations which will serve as a

cornerstone of the services provided. The banks who are the service providers should

endeavour to understand their clients’ demands. This will motivate even more

passengers to use those same services while in Uganda thereby leading to enormous

tourism growth. However, provision of quality services and facilities is a powerful

determination of satisfaction and much attention should be drawn to the gap

between expectation and perception of the reality of the service.

5.3 Conclusions

E-banking is of grate value to all the travellers and to tourism growth in any

destination world over, including Uganda. Many of the travellers expressed interest

in using E-banking services while in transit. However, many travellers expressed

dissatisfaction in the way E-banking services and facilities are distributed in

Uganda, unlike the propositions alleged by many brochures about Uganda that

credit cards are widely accepted, research shows that credit cards which are a

component of E-banking are not widely accepted except in big city hotels and some

travel companies in Kampala and lesser in the rural areas which have more of the

tourist attractions thus setting a large platform for improvement

The government should put in more effort in the management of the E-banking

networks in the country through the banks and major transit points of entry and exit

out of Uganda like the Entebbe airport, road ports like Busia, Malaba, Nimule,

Cyanika and Katuna. This could be done by putting a variety of artificial intelligence

Automated Teller Machines to suit the traveller’s interests during travel and visits in

Uganda.

Travellers mainly the tourists will refer to Uganda as a truly second world country

since it doesn’t have up to standard services. This is because of the dissatisfactions

26

they will meet in contrary to what brochures about Uganda state and what guests

actually find on ground in Uganda.

All in all, the study established passengers’ attitudes and perception towards the use

of E-banking services and facilities including their deep ceased desire for comfort

and the need to escape the every day pressure of life thus they do not expect anything

like what they never expected. Passengers are satisfied by the services that they find

at the destination and need assurance of quality E-banking facilities and services that

would meet their expectations, then they are satisfied hence they need clear and

truthful information concerning the facilities and services they are to use.

5.4 Recommendations

Based on the findings of the study the researcher suggested the following

recommendations.

• Tourism and hospitality establishments should adopt E-banking

enhancement means like ATM machines

• The masses should be educated about E-banking and its dynamics.

• The bank networks should be wide spread in Uganda to enhance tourism

there

• Banks should adopt telephone banking to reduce on incidences of internet

fraud.

• As per the statistics, its foreigners who dominate the use of E-banking there

fore, Ugandan citizens should be encouraged to adopt the same and also

improve on their travel behaviour

• The link between E-banking and tourism should be strengthened to

promote economic growth and development in Uganda

• Banks in Uganda should advertise more on the services that they offer to

their clients there by widening their clientele base

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• As banks continue to embrace E-banking, they should also watch out on

possibilities of any loopholes that some citizens and travellers may use to

break into the Automated Teller Machines and people’s account databases

thus banks should enhance their artificial intelligence server security

systems

5.5 Areas for Further Research

Proposed areas for further research by future researchers especially biased on the aspect of

tourism industry are:

• Technology and tourism. A case study of online transactions and marketing.

• The impact of trade shows on tourism

• The role of travel companies in distributing tourist development in Uganda as a

country

• The impact of promotions and exhibitions on tourism development in Uganda

• The impact if international conferences on tourism industry of Uganda

28

5.6 References

Alleyne Dillon, (2003). “Forecasting Tourist Arrivals: The Use of Seasonal Unit Root

Pretesting to Improve Forecasting Accuracy”, University of the West Indies, Mona

Balachandher, K.G., Santha, V., Norhazlin, I., & Prasad, R. (2000). Internet banking in

Malaysia: A note on evolution of services and consumer reactions. Journal of International

Banking and Commerce, 5, 1

Bielski, L. (2000). E-business models stress putting the customer first. ABA Banking

Journal, pp. 67–76.

Booz, A & H. (1997). Internet banking: A global study of potential. New York, NY: Booz Al-

len & Hamilton Inc.

Clark, M., & Mills, J. (1993). The difference between communal and exchange relationships.

Personality and Social Psychology Bulletin, 19, 684–691. Available at Abstract-PsycINFO

Daft, R., & Lengel, R. (1986). Organizational information requirements, media richness, and

structural design. Management Science, 32, 554–571. Available at Abstract-INSPEC

DeSourdy, L. (2001). Developments in the New Zealand banking industry. The Reserve bank

of New Zealand Report, 64(2), 4.

Doll, W., Raghunathan, T., Lim, J., & Gupta, Y. (1995). A confirmatory analysis of the user

information satisfaction instrument. Information Systems Research, 6(2), 177–188.

Flavian, C., Torres, E., & Guinalíu, M. (2004). Corporate image measurement A further

problem for the tangibilization of Internet banking services, International Journal of Bank

Marketing, 22(5), 366-384.

Gan, C., Clemes, M., Limsombunchai, V., & Weng, A. (2006). A Logit analysis of electronic

banking in New Zealand. Discussion Paper No 108, Commerce Division, Lincoln University,

Canterbury.

O’Neil Malcolm (2003). Tourism Maturity and Demand: Jamaica

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5.7 Appendices

5.3.1 Sample Questionnaires

For Travellers

Dear Respondent,

I am conducting research on E-banking (that is the use of Credit cards, money

transfers and ATM cards) in relation to tourism as part of requirements for the

award of a Bachelor of Tourism Degree of Makerere University. I kindly request you

to spare some time and fill out this questionnaire.

The information given will be used for academic purposes and treated with uttermost

confidentiality.

Thank you for your cooperation.

Yours Wamono Moses

(Researcher)

Personal Data

1. Name (optional)

……………………………………………………………………………………………..

2. Home Country

……………………………………………………………………………………………….

3. Sex: Male Female

4. Educational Level

Secondary/High School University

Postgraduate Others (Please specify) ……………………

5. Is this your first time to visit Uganda?

Yes No

30

6. Would you prefer to use E-banking means to carry out monetary

transactions(deposits, withdrawals and payments)

Yes No

Please tick where appropriate for question 7 to 12

Statements Strongly

Disagree

Disagree Neither

Agree

Nor

Disagree

Agree Strongly

Agree

7.I prefer to use E-Banking

because it is convenient

8.I prefer to use E-Banking

because it is fast

9. E-Banking facilities and

services in Uganda are

excellent

10. E-Banking facilities in

Uganda are very poor.

11. I have faced difficulties in

accessing E-banking services

in Uganda

12. I do not understand the

E-banking concept

Thank You For Your Cooperation. All Information acquired will be treated with

uttermost confidentiality. Have a nice stay in Uganda.

31

For Bankers

Dear Respondent,

I am conducting research on E-banking (that is the use of Credit cards, money

transfers and ATM cards) in relation to tourism as part of requirements for the

award of a Bachelor of Tourism Degree of Makerere University Kampala. I kindly

request you to spare some time and fill out this questionnaire.

The information given will be used for academic purposes and treated with uttermost

confidentiality.

Thank you for your cooperation.

Yours Wamono Moses

(Researcher)

Personal Data

1. Name (Optional). .…………………………………………………………………..………………………

2. Bank Name …………………………….……………..……………………….……………………………

3. Position of work ……………………………………………………………………………………………

4. Period spent in that

position………………….………………………..………..………………………..

5. Does your bank provide E-banking facilities and services to the clients?

Yes No

6. If Yes for question 5, then what E-banking components do you use at your bank?

(Tick on the one that applies to your Bank)

o Website design and hosting,

o Firewall configuration and management,

o Intrusion detection system or IDS (network and host-based),

o Network administration,

o Security management,

o Internet banking server,

o E-commerce applications (e.g., bill payment, lending,

32

brokerage),

o Internal network servers,

o Core processing system,

o Programming support, and

o Automated decision support systems.

7. Does your bank offer E-banking support services?

Yes No

8. If Yes for question 7. above, then what E-banking support services do you offer at

your bank?

o Web linking

o Account aggregation

o Electronic authentication

o Website hosting

o Payments for E-Commerce

o Bill Payment and Presentment

o Person-to-Person Payments

o Wireless E-banking

o Account management

o New account opening

o Consumer wire transfers

o Investment/Brokerage services

o Loan application and approval

o Cash management

o Small business loan applications, approvals, or advances

o Commercial wire transfers

o Business-to-business payments

o Employee benefits/pension administration

9. According to your personal judgment, how would you rate Ugandan citizens’

demand for E-banking services? (Tick where appropriate)

High Moderate Low No Demand

33

10. E-banking services and product users at your bank are: (Tick on either true or

false.)

CATEGORY TRUE FALSE

Youthful travelers (citizens and foreigners)

Elderly Travelers (citizens and foreigners)

Business men (citizens and foreigners)

Majorly Ladies (citizens and foreigners)

Majorly Gentlemen (citizens and foreigners)

Foreigners

Ugandans

Thank you for your response. All information acquired will be treated with

uttermost confidentiality

34

For Uganda Tourism Board Staff

Dear Respondent,

I am conducting research on E-banking (that is the use of Credit cards, money

transfers and ATM cards) in relation to tourism as part of requirements for the

award of a Bachelor of Tourism Degree of Makerere University Kampala. I kindly

request you to spare some time and fill out this questionnaire.

The information given will be used for academic purposes and treated with uttermost

confidentiality.

Thank you for your cooperation.

Yours Wamono Moses

(Researcher)

Name (Optional)…………………………………………………..………………………….…………

Sex: Male: Female:

Position held at UTB……………………………………………………….…………………………...

Have you heard of E-banking before?

Yes No

If so, then where? ............................................................................................................

Please tick where appropriate for question 7 to 15

Statements Strongly Disagree

Disagree Neither Agree Nor Disagree

Agree Strongly Agree

7. I prefer to use E-Banking

because it is convenient

8. I prefer to use E-Banking

because it is fast

9. E-Banking facilities and

services in Uganda are

excellent

10. E-Banking facilities in

Uganda are very poor.

35

11. I have faced difficulties in

accessing E-banking services

in Uganda

12. I do not understand the

E-banking concept

13. The current tourism

growth in Uganda is as a

result of the emergence of

better E-banking facilities

14. The current tourism

growth in Uganda is NOT as

a result of the emergence of

better E-banking facilities

15. I would encourage every

client I interact with, to use

electronic means of

monetary transactions in

Uganda

Thank you for your response. All information acquired will be treated with

uttermost confidentiality.