Hospitality industry faults this year’s budget

Players in the hospitality industry now say that this year’s budget failed to answer key questions affecting the struggling tourism sector.

The Kenya Association of Hotelkeepers and Caterers faulted the budget delivered by Treasury Cabinet Secretary Henry Rotich, saying it failed to unravel important issues of concern to stakeholders in the hospitality and tourism industries. 

Through its chairman, Mike Macharia, the umbrella body said although this year’s budget allocated substantial funds towards the improvement of security in the country, the minister should have done more for the tourism sector.

“For an industry faced with a serious crisis and depressed numbers, we had hoped for more direct interventions from the minister. The budget also appeared to be a safe document for the minister and failed to address some of the underlying issues such as the budget deficit,” Macharia said.

The concerns came up during a post budget analysis seminar organised by the Grant Thornston organisation, one of the world’s leading organisations of independent assurance and tax and advisory firms.

The seminar, which had been called to dissect key issues arising from this year’s budget, tackled major changes affecting income tax, VAT and Customs and Exercise Acts.

Kamal Shah, the firm’s managing partner cited terrorism as a major challenge to the growth of the tourism sector, but challenged Kenyans not to lose faith.

“Terrorism posses a major challenge to the administration, but we should not lose faith in the country. All major African economies face challenges and Kenya is no different. Due to its strategic location, all is not lost,” Mr Shah advised.

Paragh Shah, a tax partner with the organisation said that the Government needs to involve businessmen in the ownership of Vision 2030.

Among the organisation’s leading experts who addressed the over 300 participants was Samuel Mwaura, a tax director at the firm and Linsey Adhiambo, the firm’s tax manager.