Kenya's tourism sector on brink of collapse, players warn

About 40,000 workers in the tourism industry could lose their jobs by next month, hoteliers have warned.

Speaking at the Mombasa Serena Beach Resort & Spa, the Kenya Association of Hotel Keepers and Caterers (KAHC) said at least 23 hotels have closed since last year and more are set to close in coming months.

KAHC Coast Branch Chairman, Mr Harald Kampa said the Coast has continued to experience a serious drop in volume of business over the last quarter ending this April 2015.

“Occupancies have dropped from an average of 50 per cent last year to less than 20 per cent across the region with South Coast and Malindi and Watamu areas hardest hit,” Kampa said.

He said the industry has never witnessed such desperation since the 1997 Likoni clashes and 2007/2008 post election violence.

“This is the worst nightmare for the tourism and hospitality sector in Kenya. This has been attributed to a myriad of factors most of which are out of the investors’ control,” Kampa said.

He said arrival numbers have been going down quarter after quarter with the Kenya Tourism Board (KTB) indicating a 32 per cent drop compared to last year.

Players now apportion blame on the Government over its inefficiency in handling the crisis bedeviling the multi-billion shilling industry. Kampa suggested that the Government do away with entry Visa for tourists for a short period of time to help boost international arrivals.

Trickle-down effect

KAHC on Friday held an election in which Kampa was re-elected as chairman with the Kenya Safari Lodges and Hotels General Manager Mr Silas Kiti, serving as his deputy.

He went on to add that as an industry, they have made efforts to sustain the business hoping that the situation would improve but all indications point to a bleak future.

“Many of us have dropped rates but we can only lower the rates to a particular level,’’ he said.

Industry players present warned that they will be forced to bypass government and reach out to these new markets.

“But this may have implications for the same government since we pay taxes and will demand the same services. In short, we are not going to be as hospitable as before,” they said.

Kiti resolved that as the new team gets into office, their priority will be to ensure that the ambitious beach management programme which started off as a pilot project in Mombasa county is extended to cover the entire coastal belt.

KAHC Executive Officer, Sam Ikwaye pointed out that counties that rely on tourism should also take notice that they will not meet their budgets and should factor in at least a 40 per cent drop in their projected revenues.

“Jobs have been lost and an estimated 30,000-40,000 jobs will be lost. Why isn’t the Government taking this as a serious matter? When a Miraa ban was announced last year,  President Uhuru Kenyatta himself gave a statement on this. Even National Assembly did discuss this. But to date, even counties have not debated this critical issue,” Ikwaye wondered.

He emphasised that the tourism sector is not only a source of much needed foreign exchange and tax revenues but also a large employer.

“Its trickle-down effect cannot be ignored. A down turn in tourism is being felt in other productive sectors of the economy,’’ he said.

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