State allocates Sh5.2 billion to the Kenyan tourism industry

The tourism sector at the coast is beginning to breathe following the lifting of travel restrictions by the United Kingdom, with hoteliers already reporting initial signs of recovery.

The lifting of adverse travel advisories has coincided with a government allocation of Sh5.2 billion to boost the sector and help in the recovery efforts.

Only last month, Kenya’s attractions were on display at the World Travel Awards gala ceremony in the Seychelles.

Now hoteliers want a greater say on how the Sh5.2 billion should be spent.

The Managing Director of Sarova Group of Hotels, Mr Jaideep Vohra, says the Ministry of Tourism should form a recovery implementation committee that brings together all players to spearhead the recovery process and monitor spending of the fund.

However, Tourism Cabinet Secretary Phyllis Kandie says that is not how the government works.

“I do not think the private sector should be involved in how the Government spends every coin. You have to trust my way,” Kandie told hoteliers during last week’s tourism symposium at the Whitesands Hotel, Mombasa.

Implementation committee

 But Vohra believes their input is critical.  

“It is us (hoteliers) who are hurting and we should be the ones to tell the Government the areas that need to be fixed; it is not for the Government to tell us what it wants to solve. But we thank the President for his support, for making sure the sector was allocated the money,” he said.

Vohra added, “The last three years have been very difficult for the industry, the worst being the imposition of travel advisories by the UK, US, French and Australian governments in May last year. This brought the tourism industry to a virtual standstill.”

Tourism sector players want to see Sh1 billion spent on marketing the country.

“Marketing Kenya overseas will require the development of destination marketing collateral such as DVDs, maps and other giveaways.

This will be useful in supporting the marketing efforts being carried out by private sector,”   a proposal prepared by the Kenya Tourism Federation, says.

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The proposal notes that launching a global advertising campaign in international media houses like CNN, BBC, CNBC and Al Jazeera would cost about Sh 1 billion, with a similar amount going to brand sponsorship.

“Kenya should seek positive brand association by having a world class sports team carry the Kenya brand at all its matches for a period of two to three years,” says the proposal.

 During the symposium, CS Kandie said that the government had already rolled out various programmes, some of which were borrowed from Tourism Recovery Task Force report. 

She said the Government plans to recruit international celebrities to market the country abroad, and has already contracted a UK public relations firm, Grayling PR, to advise in this regard.

“We have put pen to paper with CNN and hope the will sell our unmatched tourist attractions to America, Europe, Asia and Africa,” the CS said.

The recovery package will also entail marketing Kenya in the emerging markets of India, China and the United Arab Emirates. Other efforts will be made to market the country in African countries like Nigeria, South Africa, Tanzania and Ghana, said Kandie.

“The major effort will also be put in the ‘Tembea Kenya’ programme in a bid to make sure many Kenyans tour their country. We thank the hotels for coming up with friendlier packages,” she said.

“As to whether we will seek or involve the private sector to budget, I need to consult on that because the Government has its own way of working,” Kandie said.

Emerging markets

The CS and the hoteliers, however, agree the recovery process must start immediately to turn around the sector that has seen a 25 per cent drop of visitors in the first five months of 2015.

Figures from the Kenya Tourism Board (KTB) indicate the number of visitors fell from 381,278 to 284,313 between January and May this year.

The adverse effects of the fall are evident across the coast region where about 20 tourists’ hotels shut down in Malindi, Mombasa, Diani, Lamu and Watamu, leading to the lay off over 30,000 workers.

Kenya Tourism Federation (KTF) has also proposed a number of fiscal concession enumerated in the report of Tourism Recovery Task Force.

 “Key among the anticipated remedial measures was restoration of VAT exemption on tourism services that are currently not taxed by our key competitors in the region like Tanzania,” noted KTF chairperson, Lucy Karume.

The two taxes the sector want suspended during the recovery period is the value added tax on both the conservation fees and tour operator services levy.

Vohra, who is also the national chairman of the hoteliers’ umbrella body, the Kenya Association of Hotel Keepers and Caterers (KAHC), said it would be useful if tourism stakeholders and the ministry met every month to review the recovery process. 

On June 18, the UK government lifted adverse travel advisories issued against Kenya  after  one-year of intensive lobbying by both the national and county governments and the private sector.

During that period, the UK High Commissioner to Kenya, Dr Christian Turner, toured the coast region to assess the security situation.

The UK is Kenya’s  biggest tourists source market, with  Kenya receiving  117,201 visitors from the UK in 2014.