Mombasa Sh41m tourism budget angers hoteliers

Corporate News

Local tourists at a public beach in Mombasa. Hoteliers are outraged at the Mombasa county government’s proposed Sh41 million budget for tourism development in the 2015/2016 financial year. PHOTO | FILE 

By MATHIAS RINGA, mringa@ke.nationmedia.com

In Summary

• Out of the county’s total Sh10.7 billion budget, only Sh106 million has been earmarked for the Tourism and Culture Development department, down from Sh200 million in the current financial year.
• The amount, which hoteliers term as too little, comes at a time when the sector is facing one of its worst downturn following massive decline in international tourist arrivals.
• Hoteliers argue that Mombasa should have set aside at least 10 per cent of its budget for tourism recovery campaigns since by virtue of it being the country’s leading tourist attraction, it would be a major beneficiary.

Hoteliers are outraged at the Mombasa county government’s proposed Sh41 million budget for tourism development in the 2015/2016 financial year.

The amount, which they term as too little, comes at a time when the sector is facing one of its worst downturn following massive decline in international tourist arrivals.

Currently, hotel occupancy in Mombasa is averaging at between 20 and 25 per cent compared to 50 per cent in the same period last year.

Out of the county’s total Sh10.7 billion budget, only Sh106 million has been earmarked for the Tourism and Culture Development department, down from Sh200 million in the current financial year.

Out of the Sh106 million, only Sh41 million has been set aside for tourism development while the rest is for recurrent expenditures.

Out of the county’s 10 departments, tourism received the lowest allocation with health carrying the lion’s share of Sh1.6 billion.

Thursday, Kenya Association of Hotelkeepers and Caterers Coast branch vice-chairman Silas Kiti described the Sh41 million allocation as sad news for the sector.

The paltry allocation, he said, was a clear indication that county chiefs had little interest in reviving the sector that has seen several hotels close down and tens of thousands of workers laid off.

Mr Kiti argued that Mombasa should have set aside at least 10 per cent of its budget for tourism recovery campaigns since by virtue of it being the country’s leading tourist attraction, it would be a major beneficiary.

“At the moment, thousands of hotel workers have been laid off while hundreds of suppliers have lost their livelihoods. How will the county be able to collect Sh5 billion from the local revenue sources if the sector is on its knees?”

Mr Kiti called on the six Coast governors to set aside funds for marketing as part of efforts to revive the sector.

“It should be noted that tourism is the backbone of the region’s economy with farmers, fishermen and almost all businesses depending on the sector.

“We talk of 40,000 hotel workers being out of work while thousands of suppliers have been driven out of business. If we invest heavily in tourism, the sector will rebound and support job creation and economic growth,” he said.

Kenya Association of Tour Operators Coast branch chairperson Monika Solanki expressed disappointment over the Sh41 million allocation, saying the funding amounted to a “mere drop in the ocean”.