Uhuru Kenyatta cuts park entry fees to boost tourism

Kenya: President Uhuru Kenyatta has announced far reaching reforms aimed at promoting the tourism industry in the country.

Among measures taken by the government to spur growth within the tourism sector include allowing all corporate and business entities to pay vacation trip expenses for their staff on annual leave in Kenya and deduct such expenditures in their taxes with effect from June 12.

 “Through this measure, we shall directly give at least 25,000 Kenyans a chance to go for a week’s holiday every month at the expense of their employers, bringing to total more than 300,000 additional Kenyan guests in our hotels throughout the country,” said the president.

Similarly, beginning  May 29, all air ticketing services supplied by travel agents shall be exempted from the VAT Act, 2013.

All park fees currently set at USD90 per non-resident and Sh1,200 per resident guest shall be reduced to USD.80 and Sh1,000, respectively, with effect from  June 12.

Landing charges

The government equally revoked with immediate effect the National Treasury Circular restricting the public service from holding conferences and other meetings in private hotels.

 It will now be possible for the public sector to hold conferences and meetings in private hotels throughout the country.

 Budgetary resources, at the National Government, said President Kenyatta, earmarked for foreign travel will, in Supplementary II, be reallocated to domestic travel.  

“We urge Parliament and the Judiciary to do the same. The National Government urges the County Governments to reallocate all their foreign travel budgets to domestic travels in order to spur growth of domestic tourism and sustain employment,” he said

Among other drastic measures announced by the president include reduction of landing charges by 40 per cent in Moi International Airport and Malindi Airport.

At the same time, Government has allocated adequate resources to expand Malindi Airport to international standards to allow for larger commercial aircraft to land.

To improve the sector liquidity and cash flow, the president announced the government’s decision to the effect that all outstanding income tax related refunds amounting owed to the tourism industry players will paid out by Kenya Revenue Authority not later than next Thursday, June 29.

“In view of the importance of the tourism sector in Kenya’s economy, especially its multiplier effect on various sectors, the Government and stakeholders have agreed on measures to get the numbers back into our hotels, and growing it on a sustained basis to at least ten million visitors annually in a decade,” said the president.

After growing strongly and steadily between 2001 and 2007, said the Head of State, tourism sector was worst hit when the international arrivals declined by 31 per cent due to, among others, the election related challenges and impact of international economic and financial crises.