KENYA: Global economic downturn and the post-election crisis that embroiled Kenya in 2007-2008 is still impacting negatively on the tourism sector

Record ID: 361714

  • Title: KENYA: Global economic downturn and the post-election crisis that embroiled Kenya in 2007-2008 is still impacting negatively on the tourism sector
  • Date: 19th May 2009
  • Summary: MOMBASA, KENYA (FILE) (REUTERS) TOURISTS ON SUN BEDS UNDER PALM TREES VARIOUS Of TOURISTS HAVING BREAKFAST BY THE BEACH TOURISTS AT THE BEACH TOURISTS SUNBATHING BY THE POOL VARIOUS TOURISTS PLAYING IN THE POOL
  • Embargoed: 3rd June 2009 13:00
  • Keywords:
  • Location: Kenya
  • Country: Kenya
  • Topics: Economic News,Travel / Tourism
  • Reuters ID: LVA5Q041F6YPGJQA7SU36R4PA83T
  • Story Text: The white sandy beaches, wildlife and tropical climate of East Africa are losing their attraction for long-distance visitors facing recession and unemployment as a result of the global financial crisis.
    To Europeans and North Americans, it is a distant and expensive destination, and one of the first to be dropped from holiday itineraries when money is tight.
    Tourism is Kenya's third-biggest earner of foreign exchange, behind horticulture and tea, and economists fear falling visitor numbers as a result of the downturn, will hit earnings and damage local firms that provide jobs and keep people out of poverty.
    Samson Apena is the assistant manager of the game reserve Maasai Mara.
    "The global economic recession has had very serious consequences and impacts on tourism sector here in Kenya and I think for us it is like a double tragedy. We have impacts of the post election violence still being felt in the industry and also now the global economic recession. There is still quite a lot that needs to be done, obviously if you look at the occupancies for last year 2008-2009, there is a slight remarkable improvement but comparing that to 2007, I think it is worse," said Apena.
    Kenya's tourism ministry says the industry accounts for at least 400,000 jobs in the formal sector and more than 600,000 in the informal sector of East Africa's biggest economy.
    However, operators worry about the prospect of having to cut jobs.
    "Because of this we have had to cut down on our major cost areas, in terms of operations, luckily for us though as a company we have not had to lay-off our staff but elsewhere i think that has had to happen and there is now way to escape it because operating a lodge like this is a very expensive affair and you cannot do that when you have no business," added Apena.
    Apena says there is still hope for the industry to pick up, even though most of the tourists that visit the camp are from countries that are worse hit by the global financial crisis.
    "Our biggest markets are in Europe and America and now we are exploiting the Asian market, and those are the areas that have been seriously affected by the global recession....so, we are hopeful. Now there are a lot of plans to revive economies in those countries, so we are very hopeful," Apena said.
    Kenya's visitor numbers fell by 30.5 percent to 729,000 last year after the post-election violence.
    Aggressive marketing at home and abroad has failed to stem the slide in the face of the world economic slowdown.
    Kenya's largest group of holiday-makers -- 42.3 percent -- comes from Europe. Central bank figures show the number of European visitors fell by 46.7 percent in 2008 to 308,123.
    "I know people that have been affected, there are people for example with debts for buying houses or something and I think they are people who are concerned about spending money even if they would have," said Finnish torurist Erikki Tiittanen.
    But Uwe Trostmunn, a German tourist believes the outlook is not all bleak.
    "From Europe to travel to Kenya is very expensive, and people who had money in the past to travel here I think would have it in the future, so the economic crisis will hit the poorer people in Europe," said Trostmunn.
    Kenya has cut the fee for an adult tourist visa to 25 US dollars from 50 US dollars to try to defend market share but the Tourism Ministry does not expect the outlook to improve this year.
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