Tourism stares at a gloomy future

Despite Kenya boasting of some of the best beaches and safari destinations in the world, insecurity and travel advisories issued by the country’s traditional source markets are threatening to cripple the business. PHOTO | FILE

What you need to know:

  • Previous estimates from the industry indicate that more than 20,000 jobs in tourism have already been lost, hitting thousands of households. In the last year, over 23 tourist hotels have shut down.
  • Mid this month, Kenya Tourism Board managing director Muriithi Ndegwa, said plans  were in place to restore confidence in Kenya as a preferred safe tourism destination despite the current challenges.
  • The government’s efforts to boost tourism appear to have borne no fruits. In May last year, the government directed the taskforce formed by the ministry of Tourism, to come up with a plan to revamp the sector within two weeks.

Despite Kenya boasting of some of the best beaches and safari destinations in the world, insecurity and travel advisories issued by the country’s traditional source markets are threatening to cripple the business.

Analysts now say the sector could stagnate for a long time.

“Tourism, which has been in decline for a few years now, is not likely, in our view, to recover in the short-term. This is especially negative for the current account as tourism is one of Kenya’s biggest foreign exchange earners,” analysts at Renaissance Capital said.

Hoteliers, who spoke about the current state of the tourism and hospitality industry last week painted a gloomy picture as well.

“We have continued to experience serious decline in the volume of business over the quarter ending April. Occupancies have dropped from an average of 50 per cent last year to less than 20 per cent across the Coast,” said Harald Kampa, Coast region chairman of the Kenya Association of Hotelkeepers and Caterers.

The industry estimates that 40,000 jobs are on the line aggravating the state of joblessness already facing the Coast and by extension, the whole country.

Previous estimates from the industry indicate that more than 20,000 jobs in tourism have already been lost, hitting thousands of households.

In the last year, over 23 tourist hotels have shut down.

TERROR ATTACKS

Kenya relies heavily on tourists from European countries, the US and Australia. The sector is one of the largest contributors to the economy.

A terror attack at Garissa University College on April 2, left 148 people dead, dealing a fatal blow to tourism with Britain enhancing its travel advisory to the Coast and northern Kenya.

Concerns over insecurity in the country were heightened in 2013  by the terror attack on Westgate Mall in Nairobi, followed by spate of attacks in Lamu and Mandera counties.

Garissa attack is the second deadliest after the 1998 bombing of the US Embassy, in Nairobi, which claimed more than 200 lives.

“Kenyan holiday resorts and hotels are receiving cancellations following Garissa attack. Insecurity explains why Kenya’s tourist arrivals dropped below one million in 2014 for the first time since 2009,” Renaissance Capital said.

The US, Britain, Australia, France, Sweden and Italy have sustained travel advisories, warning their nationals against visiting Nairobi’s Eastleigh, the Coast and the northeastern Kenya due to potential terror attacks.

It is hoped that the countries would heed the call by World Tourism Organisation Secretary-General, Dr Taleb Rifai, to do away with the advisories and support Kenya to revive the industry.

“Kenya is a good destination for tourists and the international community should give the country unconditional support. Terror is a global challenge, which requires all nations to join hands in combating it,” Mr Rifai said when he paid a courtesy call on President Uhuru Kenyatta at State House, Nairobi, on Saturday.

“I want to assure you that you are not alone in this, we will support you.” 

Mid this month, Kenya Tourism Board managing director Muriithi Ndegwa, said plans  were in place to restore confidence in Kenya as a preferred safe tourism destination despite the current challenges.

PREFERRED DESTINATION

“Kenya remains a preferred destination to many in spite of the recent challenges and there is need to maximise on suitable platforms to showcase the country,” Mr Ndegwa said.

“We are looking to grow the number of visitors from across Africa where levels of affluence are constantly increasing resulting into increased propensity to travel.”

The government’s efforts to boost tourism appear to have borne no fruits. In May last year, the government directed the taskforce formed by the ministry of Tourism, to come up with a plan to revamp the sector within two weeks. The industry has, however, continued to dwindle.

Apart from the travel advisories arising from security challenges, tourism has in recent years faced tough times as economic slowdown especially in Europe — Kenya’s traditional source market — led to reduction in the number of visitors from the region to Kenya.

Investors have also blamed the woes facing the industry on the Value Added Tax (VAT) imposed on the business in 2013.  They said that the tax has made travelling to Kenya very expensive.

This has given other relatively low-priced destinations in the region such as Tanzania, Zanzibar and South Africa an upper hand over Kenya.