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This paper is a study of the economic effects of tourism in Il N'gwesi, Kenya. This group ranch has been greatly influenced by tourism and conservation efforts in recent years. It neighbors several conservation and tourism centers and in 1996 members set aside 80% of their communal land for a conservation area and initiated a community run Eco Lodge. This paper studies the potential negative effects of tourism on Il N'gwesi as well as which variables impact conservation friendly expenditure decisions. A statistical analysis reveals that group ranch members perceive that there had been inflation in the prices of land, food, and goods and services. However, close to 100 percent of households do not believe that the inflation is due to the Eco Lodge. A statistical analysis of perceptions of wildlife and conservation reveal that there is no significant difference in how households value wildlife and conservation, regardless of whether they have suffered from wildlife damage or not. Probit models were used to evaluate how respondent characteristics and types of employment influence household choice of expenditure. This revealed that providing people with economic incentives to make conservation friendly decisions does not appear to be working in Il N'gwesi.


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