Tourism upbeat despite security scare, slowdown

Cabinet secretary for the Ministry of East African Affairs, Commerce and Tourism, Mrs Phyllis Kandie. In July she launched the National Tourism Strategy for 2013-2018, promising to change the way the sector has been run. Tourism is one of the country’s leading foreign exchange earners. PHOTO/FILE 

In Summary

• The sector, which was towards the end of 2012 and early this year projected to surpass last year’s growth, also suffered from the country’s declining allure as a premium destination.
• The year also saw the enactment of a 16 per cent levy under the Value Added Tax Ac 2013 on services like travel and tour operations, hotel and hospitality industry, which directly affect the tourism sector.
• The country is also banking on product diversification in a bid to market Kenya as the preferred tourist destination.

By JOSHUA MASINDE
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The local tourism industry had a tough time in 2013, struggling with a major slowdown in the run-up to the March 4 General Election and serious security lapses that kept visitors away.

The sector, which was towards the end of 2012 and early this year projected to surpass last year’s growth, also suffered from the country’s declining allure as a premium destination.

Efforts to boost the sector’s recovery after the electioneering period were dimmed by a terrorist attack on Westgate Mall in Nairobi that left at least 67 people dead, raising more security concerns.

In the face of missed targets and dwindling fortunes, the country was forced back to the drawing board.

Tourism is one of the country’s leading foreign exchange earners.

The Cabinet secretary for the Ministry of East African Affairs, Commerce and Tourism, Mrs Phyllis Kandie, in July launched the National Tourism Strategy for 2013-2018, promising to change the way the sector has been run.

“Development of the sector was left to chance, and it continued to struggle unguided through stiff global competition as well as internal and external shocks,” the strategy says.

The five-year strategy lays emphasis on local tourism to reach a 55 per cent bed occupation by 2018, up from about 30 per cent currently.

The plan is to ensure tourism facilities are properly utilised to reduce running costs and stabilise the industry against international upheavals.

“International arrivals are projected to grow from below 2 million per year to 3 million per year,” says the strategy.

The year also saw the enactment of a 16 per cent levy under the Value Added Tax Ac 2013 on services like travel and tour operations, hotel and hospitality industry, which directly affect the tourism sector.

According to a Sabre Travel Network survey, the tourism sector in the East African Community (EAC) is set for robust growth in 2014.

This is in the backdrop of planned investments by international hotel chains in the region in the next five years, boosting the capacity of high quality accommodation facilities.

The country is also banking on product diversification in a bid to market Kenya as the preferred tourist destination.

The diversification process entails positioning non-traditional tourism areas in Kenya’s northern frontier through events like the annual Camel Derby in Maralal, archaeological sites in the north, cultural tourism among others. Niche areas like eco-tourism, sports tourism and conference tourism are also on top of the board’s radar in marketing Kenya as the ideal tourist destination.