Joseph Bonyo
3 May 2008
Nairobi — The tourism industry has recorded a 61 per cent drop in earnings for the first quarter of this year due to the post-election violence.
KTB boss, Dr Ong'ong'a Achieng' and research and development manager Kennedy Manyala during the briefing. Photo/STEPHEN MUDIARI
The sector posted Sh8 billion in income compared to Sh21 billion that had been projected as earnings during the period.
January through March is considered as high season for the local tourism industry because of the large number of visitors who come in to escape winter conditions that are usually prevailing in their mother countries.
According to the Kenya Tourist Board managing director, Dr Ongong'a Achieng', flight and booking cancellations deprived the industry of earnings.
The decline comes against the background of an 18 per cent growth the sector recorded in the same period last year.
"The crisis led to massive cancellation by tourists who we had expected to arrive in the country by January. Several travel advisories that were also issued against coming into the country contributed to this," said Dr Achieng'.
During the period, 274,000 tourists arrived in the country compared to 500,000 in the same period in 2007. Bed occupancy levels also dropped by 30 per cent resulting to closure of some hotels and an estimated 20,000 people losing their jobs.
Briefing the media at the boards' offices on Friday, Dr Achieng', however, said that the domestic tourism sector improved in bed occupancy going at 45 per cent over the period in review.
The number of visitors from the United Kingdom, United States of America and Germany, considered as source markets, also went down significantly.
The three posted 55 per cent, 43 per cent and 57 per cent declines respectively. Emerging markets of China and India also saw tourists arrivals go down by 10 per cent and 9 per cent respectively.
"This shows that there was resilience by the emerging markets and a pointer to the great potential that exist in this markets," noted Mr Achieng'.
As a result, the board announced that it was renewing its efforts to market local destinations especially in India where it is expected that out-bound tourists would number 16 million by 2010.
Most parts of the country were hit by violence following the announcement of presidential election results that became a matter of dispute. However, with the formation of a grand coalition cabinet, the sector earnings are expected to pick up starting July. Currently, the sector is on a low season characterised by few arrivals of visitors.
Since the end of February, KTB has been receiving support from partners to help it restore its position in the world. The board is also seeking an additional Sh1.5 billion from Treasury to increase its marketing efforts.
To maximise on the gains made by the peace deal, KTB is putting up aggressive media and public relationship strategies to market the country. The initiatives are designed to show Kenya as a safe destination. The board will also be focusing on high brand tourists.
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