Tour industry asks State for bailout amid travel ban
News
By
Frankline Sunday
| Apr 16, 2021
Tour operators are asking the State to offer financial bailouts and lift restrictions for inter-county travel to save the tourism industry from collapse.
In a statement on Thursday, the Kenya Association of Travel Agents (Kata) said new lockdown restrictions announced by President Uhuru Kenyatta at the end of last month dealt a major blow to the sector, which was just recovering.
“The government’s new Covid-19 restrictions announced on March 26, including suspension of domestic air services, an extended night curfew and a lockdown of five counties dealt a major blow to the industry,” said Kata Chairman Mohammed Wanyoike.
“As the travel agency community, we reacted with incomprehension. We were banking on the Easter bookings to improve our cash flows.”
He said the restrictions, which came despite them adhering to Covid-19 protocols, have compounded the losses accrued from the onset of the pandemic last year.
READ MORE
Forget miraa: Discovery of minerals stirs up Meru locals
How to turn the tide against Kenyans' poor saving culture
Super-rich investors bet on Kenya amid economic gloom
Flooded petrol stations to be shut
Labour CS says 390 Kenyans died in the workplace
Coffee farmers earn Sh1b at Nairobi auction
Bungoma county secures Sh401 million to combat climate change
Unlocking the creative power of out-of-home advertising
It's a bumpy ride for e-mobility firms in bid to move past start-up phase
Deepening connections with customers through conversational messaging
“All travel agents have been confronted with huge amounts of refund requests for trips that had to be cancelled as a result of lockdowns, border closures and travel restrictions; activities that have left travel agents reeling from unspeakable financial losses,” Wanyoike said.
Data from the Kenya National Bureau of Statistics indicates the number of visitors that arrived into the country last year stood at 47,038.
This was a drastic drop from the 1.5 million arrivals recorded in 2019.
Wanyoike said the tour and travel industry, mostly made up of small and medium enterprises, continues to face financial challenges from shrinking revenues, putting thousands of jobs on the line.
According to the CBK’s latest Credit Officer Survey, the tourism sector was one of four last year where lenders tightened credit requirements and standards for borrowers.
- Flooded petrol stations to be shut
- Forget miraa: Discovery of minerals stirs up Meru locals
- Super-rich investors bet on Kenya amid economic gloom
- Hiring civil servants on contract will fuel corruption, experts say
- Kenyan retailers ready to pounce as Ethiopia to open up market