Private sector holds key to tourism, says World Bank

The World Bank has called on Kenya to enhance its links with the private sector to double the number of tourists to country.

In a report titled ‘Tourism in Africa’, released last month, World Bank says that forming alliances with the private sector to plan and develop tourism will help Kenya double its visitors from the current 1.8 million annually to three million by 2017.

The report says that Kenya has the potential to compete with other countries if it integrates tourism into its economy.

“The government must also do their part to create better transport, electricity, infrastructure, and other key services to develop tourism for more broad-based growth and improved livelihoods,” said Makhtar Diop, World Bank Vice President for Africa.

GLOBAL HOTELS EXPANSION

The report states that global hotel chains are expanding into East Africa with Kenya as their focus. The hotels, the report says, recognise investment potential and commit millions of dollars in new projects to meet increased demand from both international tourists and the region’s fast-growing middle class.

“If developed effectively and managed efficiently over time, tourism has the potential to accelerate Kenya’s economic growth and job creation,” said the report.

It comes at a time when the government is working to increase tourism revenues to more than Sh200 billion annually.

“Tourism is Kenya’s second biggest foreign exchange earner. We seek to diversify tourism products to embrace business, sports, culture and ecotourism,” said Tourism cabinet secretary Ms Phylis Kandie.

“We are also working on expanding bed capacity in hospitality industry to 30,000 additional beds.”

Recent reports by the Kenya Tourism Board reveal that tourism earned the country Sh94.9 billion in 2012/2013 financial year compared to Sh101.8 billion the previous year, resulting to a 7.4 per cent decline. The decline was attributed to the March 4, 2013 elections uncertainty and Eurozone crisis.

The World Bank report nonetheless forecasts promising tourism revenues if the government revamps the sector.

The Business Monitor on the other hand warns that increase of tourism arrivals will depend on how quickly the government refurbishes the sector.

“Arrivals might decrease by a further 20 per cent if necessary precautions are not taken,” said the Business Monitor report 2014.

Ms Kandie said World Bank’s remarks are timely, they come at a time when the government is setting up a tourism regulatory authority as required in the Tourism Act 2011.