Mixed reactions shown towards Christmas spending

BY WINSLEY MASESE

The festive season is here with us with the closure of schools the first sign. It is that time of the year when Kenyans go out to sample the most spectacular features of the country or take time off to swim in the Indian Ocean, off Mombasa.

It’s also that time of the year when you go out to buy a gift for your loved one, most likely a bicycle you had promised your son or daughter.

Consequently, the number of tourists rise, so do sales and growth in profitability.

However, this is not the case in the tourism sector, as stakeholders paint a gloomy picture ahead. “Previously, we witnessed a spike at the eve of the festive season but things are not the same this year,” explained Fred Kaigua. 

Kaigua, the chairman of the Kenya Tours Operators (Kato) says the decline was first witnessed in 2012 compared to 2011 and this dipped further this year.

He says that the slump in the number of tourists is largely due to uncertainty in the market and the high cost of living, following the implementation of the VAT 2013. Kaigua reckons that the challenges facing the industry are cumulative in nature, mostly due to electioneering and the recent Westgate Shopping Mall attack.

“The latest Value Added Tax made Kenya an expensive destination and since tourism is a global business, it has seen prospective tourists go to other countries,” noted Jillo.

He said that Tanzania is one such country that has greatly benefitted from the emerging trend, as the country is reported to have received high booking compared to Kenya.

“There ought to be sustained efforts to market Kenya as a tourist destination even in the face of negative effects such as the Westgate attack,” he explained.

Naivas Supermarket Managing Director David Mukuha is bullish that business is promising this year and looks forward to increase their sales and profitability.

“Though there were challenges with the implementation of the VAT 2013, shoppers have recovered and we expect to increase our sales and profitability,” he said.

Mukuha said that they are arranging with the suppliers to reward their customers with gifts, as one way to boost sales.