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

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_______________________

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_______________________

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

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 Gods 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, Davids 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.

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

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 citizens 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 Ebanking enhancement means like ATM machines; the masses should be educated about Ebanking 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 Ebanking, 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 peoples account databases thus banks should enhance their artificial intelligence server security systems 7

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

Table 1: Comparison of Uganda and Kenya Visitor Arrivals, 2002-2006 Year Uganda Kenya 2002 175,073 812,418 2003 194,790 863,960 2004 189,348 944,333 2005 192,755 965,935 2006 205,287 973,516

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. iii. iv. To analyse the E-banking support services. To assess the effectiveness of E-banking activities in Uganda. To examine the relationship between E-banking and tourism growth.

1.4 Research Questions

i. ii. iii. iv. What E-banking components are being used in Ugandan Banks? How effective are the E-banking support services? Assess the effectiveness of E-banking activities in Uganda. 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, (Flavin, 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 banks 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 Ebanking 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) 13

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 Jamaicas 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 Travellers Bankers UTB Total Population 60 20 20 100 Respondents 40 20 20 80 Percentage 50% 25% 25% 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 researchers 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 16

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 Males Females Value (100%) 60% 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, 18

2% of the respondents were from Cote divore, 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 Ebanking. 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 Ebanking 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 Ebanking 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 Ebanking 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 its convenient, 5% of the respondents neither agreed nor disagreed on whether they would to prefer to use E-banking because its convenient. 95% of the respondents agreed to prefer to use E-banking because its fast, 5% of the respondents neither agreed nor disagreed on whether they would to prefer to use Ebanking because its 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 20

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 Ebanking 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 21

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-toperson 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 citizens 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 hostbased), network administration, security management, Internet banking server, Ecommerce 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 24

and publicised more and better. Its 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 visitors 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 travellers interests during travel and visits in Uganda. Travellers mainly the tourists will refer to Uganda as a truly second world country since it doesnt have up to standard services. This is because of the dissatisfactions

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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 peoples 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

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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. 6776. Booz, A & H. (1997). Internet banking: A global study of potential. New York, NY: Booz Allen & Hamilton Inc. Clark, M., & Mills, J. (1993). The difference between communal and exchange relationships. Personality and Social Psychology Bulletin, 19, 684691. Available at Abstract-PsycINFO Daft, R., & Lengel, R. (1986). Organizational information requirements, media richness, and structural design. Management Science, 32, 554571. 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), 177188. Flavian, C., Torres, E., & Guinalu, 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. ONeil 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 Postgraduate University Others (Please specify)

5. Is this your first time to visit Uganda? Yes No 29

6. Would you prefer to use E-banking means to carry out monetary transactions(deposits, withdrawals and payments) Yes Statements No Strongly Disagree Disagree Neither Agree Nor Disagree 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. Agree Strongly Agree

Please tick where appropriate for question 7 to 12

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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, 31

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 32 Low No Demand

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

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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 Neither Disagree 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. 34

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.

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