Although the number of tourist-arrivals to Kenya and gross revenue have been rising over the last few decades, real average ernings per tourist per day have been showing a downward trend that may erode the contribution of tourism to the economy in the long run. This has resulted in the speculation that tourism may not be the means to faster economic growth and development. Despite this negative trend, policies encouraging the number of tourist-arrivals are pursued in order to compensate for declining earnings per tourist per day. Several studies on the economic performance of Kenya's tourism sector have suggested possible causes for this decline. Sinclair (1991) identified package or 'all-inclusive' tourism as one of the causes. Inother words, the extent of package inclusivity determines expenditure patterns, levels and composition. The objective of this study is to explain the expenditure patterns resulting from tourists' choice of particular tour-packages. Besides the nature of spending by tourists, the study will also identify favourable tourism practices that can enhance expenditure earings per day.