Beneficiaries of Nairobi’s biggest ever conference

Insurance

Nearly 39 per cent — or just over Sh1.2 billion — of the windfall will be earned by insurers through premiums paid by an anticipated 7,000 delegates. Insurance costs already make up a significant proportion of air tickets. The image of a crime-battered country, even though the reality is different, could also see most delegates protect themselves from any security breaches. Medical insurance is also a common product for international travellers.

The study done by the World Travel and Tourism Council and Kenya Institute for Public Policy Research and Analysis (Kippra) indicates that business travellers will spend about Sh175,000 each on insurance over the period of the conference.

The Ministry of Foreign Affairs has confirmed that hundreds of delegates have sought and been granted longer stays beyond the conference, with some opting to stay on until after Christmas.

Air transport costs

Organisers of the conference have confirmed that delegates from all 162-member countries of the WTO will attend the Nairobi talks. Several more are expected from Liberia, whose President Ellen Johnson Sirleaf jetted in on Thursday, and Afghanistan, the latest countries to join the global trade organisation.

It is expected that national carrier Kenya Airways will be responsible for a significant portion of the travel into Nairobi’s Jomo Kenyatta International Airport (JKIA). Should the delegates opt for other airlines, the Kenya Airports Authority (KAA) will get thousands of dollars for every landing and take off, depending on the capacity of aircraft.

The study estimates that an average business traveller spends Sh109,000 on air transport costs. These figures might, however, be heavily understated as the anticipated earnings are based on arrivals from countries in the nearby European Union, which accounts for most of the international visitor arrivals into Kenya. Delegates expected in Nairobi would come from as far as Australia and Argentina, more three times the distance between Nairobi and Europe.

Registration fees and related expenses

About 165 nationalities drawn from current and prospective members of the WTO are expected in Nairobi. Most of the visitors require visas to enter Kenya that cost anywhere from about Sh5,000 ($50) — depending on bilateral arrangements with Nairobi. Agencies like KAA also levy a flat fee of Sh4,000 ($40) on every foreign citizen leaving the country, a cost that is loaded onto air ticket prices. Delegates are expected to spend an average of Sh40,500 on various registration fees.

Accommodation

More than half of the 56 top-end hotels in Nairobi approved to offer accommodation for delegates attending the WTO meeting were fully booked by Saturday, organisers said. Nairobi franchises of global hotels chains like Villa Rose Kempinski, Hilton and Intercontinental did not have any empty rooms by mid last week. The study expects delegates to spend about Sh18,000 on accommodation by Friday. However, some hotels charge up to Sh20,000 a night, so this amount is expected to increase.

Land transport costs

Tour operators are expected to earn Sh94.2 million from MC10, and will be among the earliest beneficiaries as they start working soon after the delegates touch down at JKIA. Most hotels have contracted third-party cab service providers to shuttle visitors to and from the airport and to KICC. Outside of the main conference, visitors who wish to get a feel of Nairobi will turn to tour and travel operators. The average tourist will spend Sh13,455 on land transport, according to the study.

Food and beverage

Delegates at the conference are anticipated to collectively spend more than Sh82 million on food and beverages during their stay in Nairobi.

Franchises of global eateries around Nairobi, such as KFC and Subway, would ensure the conservative visitor still feels at home, while the more adventurous could visit indigenous outlets. The study on tourist spend found that the average business traveller spends Sh11,800 on food and beverages in two to five days. Considering the profile of MC10 delegates, the spend per person could be much larger. It is worth noting that most delegates’ bills are being covered by their governments, as they are here on official business.

Retail shopping, recreation and entertainment

The average business traveller to Kenya spends Sh17,600 on shopping and entertainment, the study found. Nairobi hosts more than a dozen shopping malls, and hundreds of entertainment spots. These outlets are anticipated to earn in excess of Sh124 million over the course of the conference.

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