Business Daily (Nairobi)
Wangui Maina
4 November 2009
A full recovery in Kenya's tourism sector could come earlier than anticipated following positive signs in the world economy that is expected to uplift travel market.
The sector is optimistic it could reach the 2007 highs of two million guests sooner though revenues are not expected to reach Sh65 billion due to discounting offered this year in a bid to attract visitors.
Numbers are only 12 per cent down compared to 2007.
Players see the country gaining from as early as next month with bookings materialising.
Tour operators mainly make bookings in advance but tourists have a 30-day release period within which to choose to cancel planned travel.
"This is good for us as we could see bookings being realised. This could take effect as early as this holiday season," said Mrs Agatha Juma, the chief executive of Kenya Tourism Federation (KTF).
The Coast is gearing up to receive more charters next month, showing more visitors are expected.
Mr Paul Norman, the general manager of Holiday Inn, said this year has been promising for the city hotels compared to 2008 and the improving economies "can only be good" for the sector.
He noted that business travel and corporate business has sustained players in the city and there is currently a pick in leisure travel that is expected to increase.
In the first nine months of the year, arrivals grew by 38 per cent to 496,056 compared to the same period last year and only 12 per cent below 2007 figures.
Revenues increased by 10 per cent as of August 2009 to Sh36.64 billion compared to the same period last year.
This growth has been attributed to the recovery strategy the country put in place after the post-election violence and after the economic crisis hit the travel market.
Since last year, the government and sector players have invested billions of shillings to open new markets and tell source markets that he country was safe.
This recovery optimism is shared by the UN World Tourism Organisation (UNWTO) that says that the sector as a whole is on the road to recovery by 2010.
In a statement the secretary-general of UNWTO, Mr Taleb Rifai, recently noted that tourism was showing signs that confidence is returning and that demand was improving for both business and leisure travel.
"Though much uncertainty persists, there are signs that the turning point may also have been reached in the tourism sector," he said.
Africa has shown positive results recording a four per cent growth as of July 2009 as all other regions recorded a decrease in arrivals for the first seven months.
The growth in Africa, according to UNWTO, has mainly been driven by North African destinations, South Africa, Swaziland and Kenya.
Players are optimistic the country's recovery will be faster than was earlier anticipated going by the number of arrivals.
Markets like South Africa, China, UAE, Russia, Tanzania and Uganda have fully recovered and surpassed 2007 levels.
Key source markets to Kenya have shown over 70 per cent recovery with the US recording 98 per cent with 78,691 arrivals.
UK recorded 122,327 arrivals, an 80 per cent recovery, while Germany and Italy recorded 48,573 and 45,184 visitors.
The recovery in Kenya shows that the strategy that was put in place since last year following the post-election violence and the economic crisis has borne fruits.
Players focused on the country's safety and reaching new markets.
Tourism has been a major foreign exchange earner for the economy.
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