By MACHARIA KAMAU

Kenya: Rising terrorism-linked attacks in major urban centres, the just-concluded General Election and the European debt crisis pushed the number of tourists visiting Kenya and tourism revenues down in 2012.

Earnings by the industry declined by a billion shillings to Sh96 billion while international visitors dipped to 1.7 million in 2012 compared to 1.8 million in 2011.

But despite the poor performance in the course of last year, the business travel segment, a nascent but promising category, as well as investments in the hotel industry grew.

According to the 2013 Economic Survey released yesterday, the number of holidaymakers to Kenya — traditionally the mainstay of the tourism industry — went down by 7.6 per cent to 1.2 million compared to 1.3 million in 2011.

“Receipts accruing to the tourism sector decreased by 1.9 per cent to stand at Sh96 billion in 2012. International visitor arrivals decreased from 1.82 million in 2011 to 1.71 million in 2012 due to slow down in global economy, especially in the Eurozone, coupled with travel advisories following security concerns,” said the survey.

“The number of international visitor arrivals on holiday decreased 7.6 per cent. This may be attributable to uncertainties associated with the 2013 general elections, security concerns and the on-going crisis in the Eurozone.”

Most hit was Mombasa, where the number of international tourists entering the country through the Moi International Airport declined by 22.7 per cent to stand at 187,000 last year compared to 242,000 in 2011.

This was mostly due to security concerns in the city that had seen a spate of attacks — including explosions in high-human traffic areas — that were linked to terrorist activities. The Government has since said the situation has been contained.

International arrivals at the Jomo Kenyatta International Airport in Nairobi grew 1.7 per cent.

Despite the gloomy performance, the business tourism segment of the industry posted positive growth. The number of tourists coming to Kenya on business related travel — including conferencing — increased 1.7 per cent to 236,000.

Increased investment

While the numbers may not march that of visitors coming on holiday, the growth is seen to mean tourism product diversification efforts are bearing fruits. The industry segment that is still in its nascent stages is among the other areas expected to grow tourism numbers and reduce reliance on the ‘bush and beach’ product to attract visitors.

Decline in earnings and visits have also not dampened the mood among investors, who pumped more money in setting up new tourism facilities in the country. According to the survey, the number of beds available grew 8.2 per cent. Several hotels started operations in the course of last year, set up by a mix of both local and international investors and some managed by global hotel chains.

However occupancy of hotels went down, mostly due to reduction in international arrivals.

“The hotel bed-nights available expanded by 8.2 per cent from 17.4 million in 2011 to 18.8 million in 2012, partly due to the opening of new hotels,” said survey. “The hotels and restaurants sector expanded by 2.6 per cent in 2012 compared to 4.9 per cent in 2011. The decelerated growth was attributed to the decline in the number of tourists arrivals and earnings.”

Against the 18.8 million bed-nights available in 2012, occupancy rate stood at 6.8 million.