Revenue of Kenyan tourism industry dropped 32% in H1 2008 due to declining tourist arrivals, post-election violence, and growing stature of neighboring tourist destinations.
According to Kenya Tourist Board (KTB), the tourism industry revenue dropped 32% in the first six months of 2008 against the same period last year, as reported by Reuters.
KTB said that the tourist inflow in Kenya dropped 36% to 561,313 visitors in the first half of 2008 from 873,433 visitors in the same period last year. With fall in tourist arrivals, the industry revenue also plummeted from an estimated $507.14 Million recorded in 2007 to $344.04 Million at the end of June 2008. Also, the average hotel room booking also dropped from 35% to 40% during the same period.
There is a huge decline in tourist arrivals in Kenya after elections that caused violent clashes among tribes, resulting in fall of the tourism industry revenue. In view of rising violence, many countries warned their citizens to desist from traveling to Kenya. Travelers cancelled their flight bookings following the political crisis in the country that caused a huge slump in the tourism industry.
Further, the inconsistent and fluctuating US dollar and Shilling (Kenyan currency) also hit the tourism industry, along with negative effects of loss of wildlife, forest destruction and human-wildlife conflict. Also, the tourism industry of Kenya is facing tough competition from those of neighboring countries, particularly South Africa that has modified its marketing strategy to attract tourists.
However, the tourism is anticipated to recover and tourist inflow is projected to rise by the end of 2009. If the political situation remains stable and violence does not erupt again, then there are good chances of the industry to gain the former growth momentum by next year.
According to a Research Analyst at RNCOS, “The decline in tourist arrivals in Kenya not only affected the industry but also hit the country’s economy as it is a major foreign exchange generator. The slowdown in the industry has also affected the employment sector of the country as employers are adopting cost cutting measures to offset loses incurred from low tourist inflow. The government of Kenya should also resolve political issues sprang up after elections as soon as possible to boost the tourist arrival.”
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