Tourism earnings to dip as living cost increases

By Macharia Kamau

Debate on the rising cost of living is no longer about fuel and food. Tourism is also taking a bite.

Early in the year, the sector’s outlook looked bright as international arrivals expanded by over 15 per cent. But as it is, the tomorrow seems bleak.

The rising cost of living has apparently forced would-be-tourists to cut on their spending, a move that is ikely to affect sector’s revenues. Photo: FILE/standard

Experts say even domestic tourism, which normally supports the sector in recession, will be hugely affected. High inflation has seen people cut luxury spending and instead focus on basic items.

Inflation, the sustained increase in the general level of prices for goods and services, has risen for six consecutive months from three per cent in November last year to 12 per cent in April.

Fuel prices, in particular, have been on upward trend. The prices appreciated from Sh94 a litre of petrol to the around Sh115 per litre.

"There is worry that domestic tourism might be affected by increase inflation," said Tourism Minister Najib Balala. The minister said there are plans to showcase "pocket friendly" destinations where Kenyans can tour.

He said the domestic tourism marketing unit housed by Kenya Tourism Board (KTB) will be allocated Sh100 million to market Kenya in the coming financial year.

"We will be setting aside Sh45 million to enable KTB to market tourist destinations domestically and another Sh55 million for marketing to neighbouring countries," he said.

Branding sponsorship

In this financial year, the KTB had Sh30 million for marketing Kenya to Kenyans.

"To complement the traditional print and electronic media, KTB has undertaken various initiatives such as bus branding, sponsorship of various local events around the country," said Muriithi Ndegwa, the KTB marketing director.

Even with the eroding earnings, Mr Ndegwa said the country has a diversified tourism products that will suit "all types and categories of domestic tourists."

He adds that past campaigns like Tembea Kenya and Twende Tujionee have resulted in attitude change among Kenyans.

"There is a notable shift in perception of tourism amongst Kenyans where tourism is no longer considered as a foreigner’s affair only," said Ndegwa.

In the past, KTB has been criticised for lack of an online media plan to market the country. It, however, says it is making efforts to make use of the new tool.

Promote Kenya

"Online and digital marketing is one the platforms that KTB is currently using and intends to continue using it even more to promote Kenya," said Ndegwa.

Kenyans are increasingly turning to the Internet as a primary source of information. The number has risen from three million by end of 2009 to eight million mid last year. It is now estimated at nine million.

KTB is also partnering with public service vehicles in a bus branding campaign. Buses will be wrapped with messages about Kenya as a tourist destination.