Investors at the coast are confident that, despite the Dusit and 14 Riverside terror attacks, the tourism market in Kenya will improve in 2019.
Bobby Kamani, Managing Director of the Diani Reef Beach Resort and Spa expressed confidence in Kenya’s resilience and how even the stock market remained strong after the attack, gaining KES 19 billion just a day after the attack:
“Kenya has always been a strong country and has never bowed to terrorist attacks. Our government and the international community has expressed confidence and responded positively in spite of this unfortunate situation which saw many individuals lose their lives.”
Mr. Kamani said that he was reassured by the overwhelming response of the international community in favour of Kenya and was gracious that they did not issue travel advisories which indeed would have been very detrimental to the growth of tourism this year.
Having an optimistic outlook for 2019, Mr. Kamani noted that the key driver for tourism will be, domestic tourism.
He said marshalling Kenyans to spend at both the beach and the bush would help to double revenues over and above that brought in by the international market.
“The biggest revenue earner is in domestic tourism. The government and the private sector should continue tailor making products that suit the domestic tourist as we continue to attract the international tourist through our digital and conventional marketing. 2018 saw an increase of 9% in domestic bed nights compared to that of 2017, further displaying the growing domestic holiday sales by the dynamic travel trade fraternity within the country”.
Kamani attributed the increase in tourist arrivals for both international and domestic travellers into Kenya in 2018 to the augmented role of the Government of Kenya and the Ministry of Tourism, in matters related to one of the top foreign exchange earners for the country, along with concerted efforts in the brand positioning of Kenya’s tourism products by the Kenya Tourism Board having borne fruit for the country and the economy at large.
He reiterated that political stability and an improved security status made Kenya a more attractive destination for international travellers (holiday makers and conference delegates alike) in 2018.
At the same time, several international conferences (the Sustainable Blue Economy Conference, the International SKAL Congress and the Africa Hotel Investment Forum, to name a few) were held in Kenya in the last year, further instilling confidence in the country’s safety and capability of handling large conference delegations of international repute.
Additionally, Mr. Kamani said the growth in the aviation sector further boosted confidence in the region with the launch of direct flights to New York by Kenya Airways and direct flights from Doha to Mombasa by Qatar Airways.
“The return of Air France to flights thrice a week and the return of TUI Fly Charter Airlines to the Coast instilled renewed confidence in the tourism sector based on the efforts by stakeholders, the Government and Ministry of Tourism. Kenya Airways has also just announced direct flights to Rome and Geneva from June 2019. Whilst there are more visitors from Milan to Kenya, a route covering Milan over Rome would have been preferable for hoteliers”.
He also pointed out that open border policies such as Visa on Arrival and the Single African Air Transport Market has encouraged the free movement of people and of goods across borders. Kenya has experienced profound beneficial impact from the same.
Referencing to the marketing efforts, Bobby noted that a greater involvement of private sector players in drafting policies and implementation of strategic frameworks within the sector contributed to the revival of tourism. Digital marketing has also been at the forefront of the Ministry’s agenda which has been very beneficial to the country’s tourism.
Speaking about his recent appointment to the Coast Region Tourism Working Group, Kamani reiterated the dire need for the government to grant appropriate tax incentives to hoteliers who were refurbishing and upgrading their properties:
“His Excellency, President Uhuru Kenyatta spoke of the need for private sector players to invest further into their products by refurbishing and upgrading properties. As private sector players, we couldn’t agree more. However, the Government of Kenya should consider tax exemptions for private sector players that can be used for reinvestment into the economy”.
In conclusion, he said that it should be made mandatory for all private sector players to reinvest any amount saved by way of tax exemptions in the refurbishment of existing products and up-gradation of existing services.