Time is ripe for maritime investment

Mombasa Ports Authority tug boat splashes water canon to receive cargo ship at the port of Mombasa on October 4, 2022. [Omondi Onyango, Standard] The Kenyan maritime industry is growing and there is a need for services such as marine transport which can reap huge returns for investors, experts say. Interviews with players in the industry paint a picture of a ballooning industry with little investment in it despite the revenue potential. One of the investors that has marked out this potential is Kenyan-owned liner, Lamu Shipping Limited (LSM), which is making strides in maritime commerce. Maritime tourism refers to sea-based activities such as boating, yachting, cruising, and nautical sports among others. It is different from coastal tourism - land-based tourism such as swimming, surfing or sunbathing - that takes place near the shores of the sea or ocean. Andrew Mwangura, a maritime analyst, said the pristine coastline stretching from Mombasa to the Comoros Islands represents one of the world's last underdeveloped maritime tourism frontiers, waiting for visionary investors to unlock its potential. "Picture this: sleek catamarans gliding between Mombasa's historic old port and Lamu's Unesco World Heritage sites, offering tourists and locals a comfortable, scenic alternative to current transportation options. This isn't just a dream - a viable business opportunity begging to be unravelled,'' Mwangura said. Mwangura, a former Secretary General of the Seafarers Union of Kenya (SUK), stated that the coastline presents unique advantages that make marine passenger services attractive. Mwangura explained that ancient Swahili towns, pristine beaches, vibrant coral reefs, and rich marine life create a tourism corridor unlike any other. From the bustling streets of Mombasa to the serene beaches of Zanzibar, from the historic alleys of Lamu to the exotic Comoros archipelago, each destination offers distinct experiences that can be seamlessly connected through modern marine transport. "Consider the current tourism landscape: visitors often limit themselves to single destinations, deterred by complicated transportation logistics between coastal points,'' he said. A well-planned catamaran service could transform this limitation into an opportunity, allowing tourists to experience multiple destinations in comfort and style. The potential route network could connect Kenya's coastal gems-Mombasa, Kilifi, Malindi, and Lamu-before extending southward to Tanzania's Pemba, Zanzibar, and the Comoros Islands. Maritime and business analysts in Mombasa note that the business case is compelling. Current transportation options between these destinations are limited to time-consuming road travel or expensive flights. Mombasa Tourism Council (MTC) chairman, Dr Sam Ikwaye, while applauding investors' efforts to delve into maritime transport within the Indian Ocean that borders the nation said that water transport is one product that has not been fully explored and exploited in and around Mombasa City. "Unlike Lamu and Zanzibar, excellent experiences await investors to harness the huge potential of Mombasa's tourism outlook," Dr Ikwaye said. He went on to add that there is a need to develop a strategy and policy for the leadership to attract investors with competitive offers to invest. "This will also ease the challenge of huge traffic jams experienced on the island of Mombasa,'' he said. Mwangura reiterates that a maritime alternative would offer several advantages: First, modern catamarans provide a comfortable, scenic journey that becomes part of the tourism experience rather than merely transportation. "Imagine tourists watching dolphins play in the bow wave while enjoying refreshments on deck-the journey becomes as memorable as the destination." "Third, these services would benefit both international tourists and residents, ensuring year-round demand beyond peak tourism seasons," he stated further. The timing for such an investment couldn't be better. Governments along the East African coast are recognising the importance of maritime infrastructure development. Kenya's commitment to the maritime sector growth, demonstrated through various policy initiatives, suggests a receptive environment for marine tourism investments. To accelerate this development, Mwangura urges governments to consider implementing specific tax holidays for marine passenger service operators, particularly during the initial years of operation when routes are being established and market demand is building. He also calls for the creation of streamlined licensing processes for coastal passenger services, reducing bureaucratic hurdles that might deter investors, as well as developing dedicated marine passenger terminals at key ports, ensuring comfortable embarking and disembarking facilities for tourists. "Establishing clear customs and immigration protocols for marine passengers and facilitating smooth movement between countries should also be a priority," Mwangura said. He said that the success of Lamu Shipping Limited in cargo services demonstrates the viability of maritime ventures in the region. The same entrepreneurial spirit, applied to passenger services, could revolutionise coastal tourism. The first movers in this space will have the advantage of establishing brand recognition and securing prime operational locations. Environmental considerations strengthen the business case. Modern catamarans, particularly those utilising hybrid or electric propulsion, offer an eco-friendly alternative to current transportation options. This aligns perfectly with the growing demand for sustainable tourism experiences and could attract environmentally conscious travellers. He said the model has proven successful in other parts of the world, with the Greek Islands, Caribbean, and Maldives demonstrating how integrated marine passenger services can enhance tourism experiences and generate substantial returns for investors. East Africa's coastal tourism potential remains largely untapped, not due to a lack of attractions but due to limited connectivity. The success of ventures like Lamu Shipping Limited shows that maritime investments in the region can thrive with the right approach and commitment.

Time is ripe for maritime investment

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