Balala calms investor nerves over Sh5bn tourism promo cash

Tourism secretary Najib Balala. PHOTO | FILE  

By MATHIAS RINGA, mringa@ke.nationmedia.com

In Summary

• Mr Balala said the funds are still available, adding that the billions would be spent on the intended purpose over the next six months.
• The Treasury released Sh450 million in October for tourism promotion as part of the marketing budget that was delayed due to a cash crunch that stalled payment of essential services.
• Kenya had hoped to launch a marketing offensive in Western capitals from August to woo tourists to its beaches and game parks.

Tourism secretary Najib Balala has moved to calm tourism investor nerves about the Sh5.2 billion marketing promotion cash yet to be released half way through the financial year.

Mr Balala said the funds are still available, adding that the billions would be spent on the intended purpose over the next six months.

The Treasury released Sh450 million in October for tourism promotion as part of the marketing budget that was delayed due to a cash crunch that stalled payment of essential services.

ALSO READ: Tourism promo budget cut on lack of marketing plan

Kenya had hoped to launch a marketing offensive in Western capitals from August to woo tourists to its beaches and game parks.

“Beginning January, we shall market Kenya across the world than before to uplift international tourist arrivals countrywide,” Mr Balala said.

“Europe will be the centre of focus as the majority of the tourists visiting our country come from the West.”

Mr Balala said Sh2 billion would be allocated to the Kenya Tourism Board (KTB) for international marketing with an emphasis on the United Kingdom, Germany and Italy.

He added that the promotion budget for domestic tourism would be increased, saying most hotels at the Coast had since last year stayed afloat due to local guests.

Meanwhile, Mohammed Hersi, chairman of the Kenya Coast Tourism Association, will join the KTB board of directors to represent the Coast tourism circuit, the minister said.

Marketing campaign

Mr Hersi is the CEO of the luxury Heritage Group hotel chain, owned by the Kenyatta family.

The planned marketing campaign comes months after the US and Britain, key source markets for Kenya’s tourism, downgraded their travel advisories against most parts of the Coast including Mombasa, Kilifi and Watamu.

The warnings were issued after repeated attacks by Al-Qaeda-linked Al-Shabaab in 2013.

Tourism is a vital foreign exchange earner for the country.

A two-year slump had forced most hotels at the Coast to shut or cut jobs sending the shilling tumbling to lows last seen three and a-half-years ago.

Besides hotels, tourists support auxiliary sectors like handicraft makers, taxi business and fishermen.

The Cable News Network (CNN) promotion is particularly good news for hoteliers who blame the government for doing too little to revive the sector that employs about 150,000 people.

READ: Kenya starts CNN tourists promo after terror slur

Official data indicates that tourism earnings fell 7.3 per cent to Sh87.1 billion in 2014, down from Sh94 billion the previous year.

Over the period, tourist numbers dropped from 1.5 million to 1.3 million.

The trend has continued this year with the number of visitors coming to Kenya falling 13.7 per cent in the 10 months to October compared to the same period last year.
However the drop in the period to October is small compared to the 25.4 per cent plunge recorded in the first five months to May.

The KTB data shows 628,345 arrivals in the period to October, down from 728,128 in the same period last year.