Kenya Airways banks on conference tourism to boost revenue

KQ Group Managing Director Mbuvi Ngunze (left) and KICC Managing Director Fred Simiyu (right) at a media briefing where the two signed an MoU to foster growth in tourism numbers and airline reservations through conferencing. PHOTO | LILIAN OCHIENG | NATION MEDIA GROUP 

In Summary

• Through a Memorandum of Understanding signed on Thursday with Kenyatta International Convention Centre (KICC), the two will closely collaborate to promote conference tourism in Kenya.
• Already, KQ is the official carrier of the 10th WTO summit and expecting to bring in over 5, 000 delegates from across the world. This will further position Kenya as a major conferencing destination, following the July GES 2015.
• The arrangement together with plans by Kenya, Uganda, Rwanda and South Sudan to form a single airspace area, could see KQ slowly bounce back and position itself as the continents thriving carrier.

By LILIAN OCHIENG
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Kenya Airways will bid for at least 50 international conferences to be hosted locally, this financial year, to up its revenue as well as increase tourism numbers.

Through a Memorandum of Understanding signed on Thursday with Kenyatta International Convention Centre (KICC), the two will closely collaborate to promote conference tourism in Kenya.

“This is part of a very critical strategy to our business, it will drive the recovery of our airline and tourism as we source for key markets that have potential for meetings, incentives, conferences and exhibitions,” said KQ Group Managing Director Mbuvi Ngunze.

KQ STRATEGY

KICC Managing Director Fred Simiyu added that in a laid down plan, the two will work on hosting conferences of the magnitude of World Trade Organisation (WTO), Tokyo International Conference on African Development (TICAD) and Global Entrepreneurship Summit (GES).

KQ also plans to offer discounted rates on airfares for conference delegates as well as holiday packages at subsidised prices.

Together, the two will tap into advertising opportunities on KQ’s Msafiri and KICC promotional platform to attract more tourists into the country.

Already, KQ is the official carrier of the upcoming 10th WTO summit in Nairobi and will bring in over 5, 000 delegates from across the world. This will further position Kenya as a major conferencing destination, following the July GES 2015.

CONFERENCING SECTOR

Kenya which controls only 0.3 per cent of the conferencing sector is positioning itself in the levels of United States which hosted 829 conferences last year, Germany which hosted 722, Singapore and South Africa both at 175.

The arrangement together with plans by Kenya, Uganda, Rwanda and South Sudan to form a single airspace area, could see KQ slowly bounce back and position itself as the continents thriving carrier.

Presidents of the four countries are expected to officiate the agreement at a Northern Corridor meeting to be held in Nairobi this month.

Kenya Airways and RwandaAir, will then have access to bigger volume of business.

KQ is also planning to sell four of its planes after it posted a Sh25.7 billion loss blamed on competition from Middle East carriers and high operating costs.

Travel advisories that led to a slump in the tourism industry, as well as runway closures for renovation also ate into their profits.