TOURISM

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A: OVERVIEW  B: TOURIST ARRIVALS INTO KENYA  C: TOURIST ATTRACTIONS  D: CONFERENCE TOURISM  E: TOURISM PROMOTION

F: POLICY ISSUES IMPACTING ON TOURISM  G: LEGAL FRAMEWORK GOVERNINGTHE TOURISM INDUSTRY  H: INVESTMENT OPPORTUNITIES v     USEFUL CONTACTS

 

 

 

 

 

A: OVERVIEW:

 

The tourist sector is one of the most important sectors of the Kenyan economy. The sector provides employment to thousands of people directly and many more indirectly. It is the second highest foreign exchange earner after agriculture, generating KSH 24,239 million in 2001 compared to KSH 21,553 million in 2000. . In 2001, the sector recorded a 1.8 per cent growth in visitor arrivals for the first quarter. This was followed by subsequent declines in visitor arrivals in all subsequent quarters for the year 2001. This was mainly attributed to global recession in major tourist generating countries.

 

The tourism sector also has strong linkages in the national economy in the transport sector, agriculture sector, manufacturing, financial, insurance and entertainment. Many informal enterprises in handicraft making are highly dependent on the sector.

 

 

B: TOURIST ARRIVALS INTO KENYA (CURRENT STATUS)

 

The year 2001 started on a positive note for the sector by recording a 1.8 per cent growth in visitor arrivals for the first quarter. This was followed by subsequent declines attributed to global recession in major tourist generating countries. Between 2000 and 2001, visitors on holiday declined by 6.3 per cent to stand at 728.8 thousand. During the year 2001, hotel capacity as defined by hotel bed nights available contracted by 11.2 per cent from 9,382.3 thousand in 2000 to 8,327.8 thousand in 2001. This was mainly due to the closure of a number of hotels for renovations during the tourist low season and fear of travelling in the wake of the September 11^th terrorist attack in the US. The total number of visitors to tourist attractions went up from 1,644.9 thousand in 2000 to 1,650.3 thousand in 2001. As concerns conference tourism, the number of local conferences recorded in 2000 dropped from 980 to 609 in 2001 while international conferences declined from 162 to 108 over the same period.

 

 

Purpose of Tourists visiting Kenya

 

The largest percentage of tourists visiting Kenya come for holiday. Kenya has beautiful sand beaches, beautiful sceneries, wildlife sanctuaries and historical sites that offer pleasant memories to holiday makers.

 An increasing number of tourists visit Kenya for business purposes every year. This is explained as a ripple effect emanating from the establishment of regional blocks such as the revival of the East African Community and the COMESA Regional block. Many business enquiries and contracts are made from Nairobi. A number of meetings and conferences on conflict resolution in the region have been held in Nairobi.

 There are also substantial numbers of tourists who visit Kenya when on transit to other destinations. Many passengers destined to or from African countries will easily obtain connections in Nairobi. There is high potential for investments that will cater for the needs of the growing number of transit passengers for example, investment in transit hotels near the major airports of Nairobi and Mombasa. Table 1 gives a summary of purpose of visit from 1997 –2001. Holiday-makers account for 73.3%, Business visitors account for 9.3% while Transit visitors account for 15.4% of the number of visitor arrivals in 2001.

 

Table 1

Quarterly Visitor Arrivals by Purpose of Visit, 1997 – 2001:

‘000

Source: Economic Survey 2002

 

 

 

Sources of Tourist visiting Kenya

 

The most important source of tourists visiting Kenya is Europe with Germany, United Kingdom, Italy, Switzerland, France and the Scandinavian countries accounting for more than half of the total number of Tourists visiting Kenya every year as shown in Table 2:

 

Africa has a share of 15.4 per cent of departing visitors rising from 145.1 thousand in 2000 to 149.6 thousand in 2001. The two East African countries of Tanzania and Uganda made up more than half of all departing visitors to Africa. Visitors destined for North America declined marginally from 72.3 thousand in 2000 to 71.7 thousand in 2001. Over 70% of departing visitors to North America were destined for USA.

 

Table 2

 

Departing visitors by country of residence and purpose of visit, 2000-2001:

‘000

Source: Economic Survey 2002

 

 

 

 

 

 

Hotel Occupancy:

 

Hotel capacity contracted by 11.2 per cent from 9,382.3 thousand in 2000 to 8,327.8 thousand in 2001 due to closure of a number of hotels for renovations during the tourist low season. Bed nights occupied went down by 9.0 per cent from 3,687.8 thousand to 3,354.9 thousand over the same period.

 

The number of hotel bed nights by European residents comprised 57.6 per cent of all bed nights in the country. However, hotel bed nights by residents of Europe went down drastically by 7.1 per cent from 2,082.9 thousand bed nights in 2000 to 1,935.4 thousand in 2001. In the wake of the September 11^th terrorist attack in the US, fewer persons wanted to travel. Germany and UK continued to be the country’s dominant markets in Europe with hotel bed nights accounting for 59.3 per cent of all hotel bed nights occupied by residents of Europe. However bed nights by clients from these two markets fell from 1,163.7 thousand to 1,147.2 thousand over the same period.

 

The second most important source of tourists in 2001 was the African continent with 990.2 thousand bed nights occupied, accounting for 29.5% of all hotel bed nights in the country. Hotel bed nights by Kenyan residents, which accounted for about 75 per cent of all bed nights by residents of Africa, dropped from 794.1 thousand in 2000 to 740.2 thousand in 2001. Apart from Kenya, the other important individual tourist markets in the African region were Tanzania, South Africa and Uganda in that order. The American continent was another important source of tourists to Kenya. However, the bulk of hotel bed nights occupied by American residents were residents of U.S.A. and Canada.

 

Most tourists to Kenya are attracted by the warm beaches of the Kenya  Coast coupled with attractive game sanctuaries nearby. The number of hotel bed nights spent by tourists in hotel establishments at the coast accounted for over 50per cent of all bed nights in the country in 2001. Tourists visiting Kenya on business spent most of their bed nights in Nairobi with 819.5 thousand in 2001 compared to 1,003.3 thousand in 2000. Increases in hotel bed nights in 2001 were recorded for Nyanza basin, Western and Northern Zones only.

 

Table 3

Hotel bed-nights by zone, 1997 – 2001:

 

‘000

 

 

Source: Economic Survey 2002.

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C: TOURIST ATTRACTIONS

 

Kenya offers some of the finest natural attractions in the world, which combined with a network of the outstanding hotels and game lodges give visitors great value for their money. With its network of well managed national parks, game reserves, marine parks, biosphere reserves, archaeological sites, and striking scenic beauty, pearly white sandy beaches along coral reef sheltered waters, green palms swaying with the breeze, sparkling cocktails and sumptuous international cuisine. Kenya is, indeed, the ultimate ideal destination.

 

The most preferred tourist attractions in Kenya are the Coastal  Beaches, Game Reserves and National Parks. (See Table 4). Other tourist attractions include Animal Orphanage, Museums, Snake  Parks and Historical sites.

 

 

 

Table 4:

Number of visitors to parks and game reserves, 1996 – 2000:

‘000

Source: Economic Survey 2002.

 

 

D: CONFERENCE TOURISM:

 

The number of local conferences recorded in 2000 dropped from 980 to 609 in 2001 while international conferences declined from 162 to 108 over the same period. The number of delegate days for local and international conferences also went down from 312,655 and 66,404 to 120,385 and 23,626 over the same period respectively. However, percentage occupancy rose from 7.7 per cent and 1.6 per cent for local and international conferences tot 8.7 per cent and 1.7 per cent respectively over the same period. These details are depicted in Table 5 below:

 

 

 

 

 

 

 

Table 5

Reported conferences, 2000 – 2001:

 

 

Source: Economic Survey 2002

 

 

E: TOURISM PROMOTION:

 

To revamp the Industry, the Kenya Tourism Board (KTB), Kenya Tourism Development Corporation (KTDC) and the Ministry of Tourism and Information stepped up tourism promotion. They participated in various fairs in Europe and South Africa. The Board also organized a Miss Tourism contest with the aim of promoting tourism both locally and overseas. The Kenya  Utalii  College continued to play a leading role in training personnel in the tourism industry. In 2001, this college trained a total of 1,219 graduates. Table 6 shows the number of graduates from Utalii  College.

 

Table 6

Kenya Utalii College graduates, 1997 – 2001:

 

 

Source: Economic Survey 2002.

 

 

 

 

F: POLICY ISSUES IMPACTING ON TOURISM TRENDS:

 

The main objective of the Government in the past has been to maximize net returns from tourism giving due consideration to possible negative economic, social, cultural and environmental implications. The main constraint to this policy is the availability of funds for investment.

 

The recovery of the Tourism Sector from the slump experienced in the recent past and the encouraging forecasts for the future, are mainly due to various factors, which will invariably continue to impact on the future performance of the industry. These factors include:

 

a.                   Liberalisation of the foreign exchange regime and the deregulation of the exchange rate.

b.                  Diversification of tourist generating markets and products.

c.                   Emphasis on Eco-Tourism policy.

d.                  The continued maintenance of peace and stability in the country.

e.                   Privatisation programme.

 

G: LEGAL FRAMEWORK GOVERNING THE TOURISM INDUSTRY

 

The Foreign Investment Protection Act governs foreign investments in Kenya. There exist two legislations regulating the industry, namely:

 

a)                  Tourism Industry Licensing Act (TILA)

CAP (381) Laws of Kenya

 

The Tourism Industry Licensing Act CAP (381) provides for the regulation of tourist and travel enterprises through:

 

(i)                  Licensing of all tour and travel enterprises within the tourism industry.

(ii)                Monitoring of all enterprises covered under this Act through regular inspections to ensure that high quality services are maintained.

(iii)               Prosecuting those enterprises that fail to uphold the expected standards of service.

 

(b) Hotels and Restaurants Act (HRA)

CAP (494) Laws of Kenya

 

This is an Act of Parliament, which governs the licensing of hotels and restaurants in the country. It also provides for:

(i)                  Regulation of hotels, restaurants and lodges.

(ii)                Collection of a training levy to finance training programmes for personnel working in the tourism industry.

(iii)               Dealing with matters incidental to and directly connected with the management of hotels and restaurants in the country.

 

 

 

 

H: INVESTMENT OPPORTUNITIES:

 

Kenya is a vast country with a wide range of potential tourist attractions, which have not been fully exploited. Currently, the tourism industry is mainly concentrated at the country’s coastal area and in the National Parks and Game Reserves. As a policy matter, the Government of Kenya is strongly committed to the regional diversification of this very important industry to other areas for some good reasons.

 

Similarly, the potential for the domestic market has not been fully exploited. There is also need to identify other tourist attractions besides the existing National Parks, Game Reserves and the Beach. In order to extend the length of stay of “safari” tourists in Kenya, emphasis will be put into the development of inland “resorts” situated close to the national parks and game reserves. It is noted that the main constraint to the development of such resorts has been lack of sufficient investment capital. Participation in such investment ventures will, therefore, be very much encouraged by the Government of Kenya in order to exploit the tourism potential in those areas.

 

Mombasa  Port Cruise-Ship Project

 

In the past, Mombasa has been serving as a port of call for international cruise-ships. With the expected world development of cruise ship industry, a home ported cruise-ship for Mombasa is considered ideal. The port of Mombasa has all the required facilities and a cruise ship facilitation committee is continuously working to improve the existing facilities. Currently cruise ships are using Kilindini  Harbour but home ported cruise ships will eventually be diverted to the Old  Harbour.

 

Cruise-Ship Project on Lake Victoria:

 

The project involves the installation of a luxury passenger vessel (5 star hotel) for upper class tourists comprising of either 40 double cabins for 80 passengers as well as cabins for the crew. Alternatively, the vessel may be comprised of 30 double cabins for 60 passengers and one saloon for 150 deck passengers with 11 cabins for 46 crew members as well as public facilities.

 

Luxury passenger boats can also be operated between Kisumu, and Muhuru  Bay with existing stopovers at Kendu  Bay, Homa  Bay, Mfangano  Island and Rusinga  Island all along the Lakeshores. Now that the East African Co-operation (a regional economic integration organisation for Kenya, Uganda and Tanzania) has been set up, the operations of the proposed Lake Victoria cruise-ship can also be extended to cover Uganda and Tanzania over time.

 

The project will be operating in the waters of Lake Victoria with its operational base at Kisumu town along the shores of the lake.

 

 

 

 

 

 

Bomas of Kenya Tourist Hotel Project:

 

This site is close to Nairobi  National Park and the Animal Orphanage. It is also off the way from heavy traffic seen on Nairobi streets where other Hotels are located. Furthermore, the location is quiet and thus making it ideal for conferences, workshops and seminars.

 

Bomas of Kenya  Amusement Park Project:

 

The Bomas of Kenya is considering establishing the first Amusement Park in Kenya similar to such famous parks as the “Seven Flags Fly over Georgia” in Atlanta or Tivoli in Copenhagen. It is expected that the amusement park will be a great attraction to both local residents and foreign tourists, especially given the current forms of entertainment available at present. The proposed amusement park will provide such diversions as a roller coaster, children playground, a continuous film in a “futuristic theatre” fun fair with ferries wheel, dodgems, mechanical games and a vast swimming pool with several gigantic slides that can take several hundred people.

 

Mombasa Island Hotel Project:

 

Conference tourism is concentrated in the major urban areas. Delegates attending conferences often take time out before or after the conference to visit parks, reserves and beaches.

 

In Mombasa, however, most hotels on the island lack conference facilities, which are considered to be of significant importance in tourism business. The town of Mombasa as opposed to the beach areas should have good conference facilities for both local and international business meetings.

 

The project involves construction of a 50-bed five star hotel facility to cater for business and holiday makers to Mombasa as well as provide gaming, conference and entertainment facility. The market share of the hotel is estimated at 27,375-room occupancy per year and estimated to reach 43,800-room occupancy in year 5 of the project life span. There are relatively few high quality hotels in Mombasa  Island to cater for upper class tourists. In order to cater for such clients, there is need to put up a high class hotel within the Island. Land for construction has already been identified in Mombasa. The project will be located in the central business district of Mombasa  Island.

 

Nairobi Jomo Kenyatta International Airport Hotel Project:

 

Jomo Kenyatta International Airport (JKIA) is one of the major gateways to Africa. Due to its importance, there is need for a medium sized 3-4 star transit hotel to cater for the increasing demand from businessmen and tourists. In this connection, it is confirmed that there is a suitable site measuring 9 acres within the airport perimeter fence. The site is directly opposite the new headquarters of the Kenya Airports Authority.

 

 

 

Thika  Fourteen  Falls Lodge Project:

 

The Fourteen  Falls on River Chania lies just outside the Ol-Donyo  Sabuk  Game  Park near the fast growing industrial town of Thika. Large scale coffee and Del Monte pineapple plantations surround the area.

 

The project will provide lodge facilities to tourists visiting the slopes of Aberdare  Mountains. The project will be located 56 Km West of Murang’a Town. The nearby town of Thika is adequately supplied with water, electricity and telecommunications services. A site has been identified and preliminary architectural plans have been prepared.

 

Foreign co-operation is sought in form of equity participation (40% of the investment), technical and management arrangement.

 

Health Spa Projects:

 

Health spas are known for their recreational and life rejuvenating features. This project aims at utilising the abundant geothermal springs for the development of health spas of international standards as major tourist attractions.

 

Kenya has plenty of geothermal springs whose mineral contents have the potential for the development of health spas to serve as tourist attractions as well as curative centres. Geothermal mineral water springs are found in arid and semi-arid areas such as Baringo and Turkana Districts within the Great Rift Valley and parts of Homa Bay District along the shores of Lake Victoria. These can be developed into popular health spas.

 

The most significant hot water springs are found at/or around the following places: Around Lakes Bogoria and Baringo. The two lakes are 345 km. from Nairobi and 136 km from Nakuru. They are within National Game Parks.

 

Around Lake Turkana which is at the borders of Kenya, Ethiopia and Sudan. The area is about 748 km. and 590 km from Nairobi and Nakuru respectively. Olkaria and Eburu near Naivasha. These two areas are near Lake  Nakuru, which is famous for flamingoes. Olkaria and Eburu are about 118 km from Nairobi.

 

Simbi on the shores of Lake Victoria, the second largest fresh water lake in the world. Simbi is 483 km from Nakuru  National Park. The area is close to Maasai Mara Game Reserve renowned for its wildlife.

 

These areas have natural and cultural attractions whose development can stimulate growth in the various locations

 

It is expected that the clients for Health Spas will be the local residents and foreign tourists visiting the various locations for other attractions such as yatching, game animals and rich culture of the communities living around them. With extensive marketing, health spas are expected to become part of package attractions to tourists and local residents.

 

Mombasa Beach Golf Hotel at the North  Coast:

 

Approximately 78% of the major hotels at the Kenya coast have a foreign investment component with 16% of others being entirely foreign owned. Tourists to the Coast account for about 60% of the total arrivals in the country. The development of tourist hotels at the Coast, however, has not matched the recent increase in the number of tourists to the region resulting in a need for additional beach hotels.

 

The site of the proposed hotel is along the Mombasa  North  Coast  Beach area.

 

Meeting  Point  Plaza:

 

Due to lack of parking facilities at the “heart” of Nairobi  City, a project comprising of basement parking facilities, restaurants, tourist offices and shopping arcades is proposed.

 

Aberdares  Forest Lodge:

 

At the initiative of Murang’a Country Council, the viability of forest lodge on the Eastern slopes of the Aberdares has been assessed. A suitable site has been identified and preliminary architectural drawings done. The project will provide lodge facilities to tourists visiting the slopes of Aberdares  Mountains. The identified site of 4.0 acres is within the Aberdares forest area but just outside the gazetted National Park. The site is approximately 56 km west of Murang’a town. 36 km of the access is tarmac, 10 km is gravel and 8 km is through a forest track.

 

Leisure Galaxy Hotel (Mwingi)

 

The project is expected to open up the tourist circuit on the eastern part of the country where we have two game reserves; Kitui North Game Reserve and Kora Game Reserve of Joy Adam’s fame.

 

It is proposed that a 50-room hotel will be built at Mwingi  Township, which is a gateway to North-Eastern  Province and Somalia. Interested local investors have already acquired a site.

 

Foreign co-operation is sought in form of equity participation, technical and marketing.

 

Kitale Tourist Hotel:

 

Kitale is a town serving the surrounding farming community. It is within a region characterised with flush tropical forests, spectacular landscapes and well-cultivated fields, a quite different tourist image of Kenya.

 

This proposal is to develop a country-style 3-star hotel comprising 50 beds with future expansion possibilities.

 

The selected site measuring about 2.25 hectares and within the town, has been identified.

 

Eldoret Airport Hotel Project:

 

Eldoret  International  Airport is the third international airport after Jomo Kenyatta- Nairobi and Moi-Mombasa airports. Due to its importance to western region of the country and the Great Lakes region, there is need for the increasing demand from the businessmen and tourists.

 

Given the importance of the Airport as a major gateway to and from the Great Lakes as well as Western Kenya regions, the project will be viable. A site within the airport perimeter fence has been identified by interested local investors for the development with the participation of foreign investors.

 

Kora Lodge Project:

 

The project proposal is in response to the need for a lodge within 1,800 sq. kms National Park which was the home of late Joy Adamson, the famous environment conservationist. This is expected to be a 50 room 3-star lodge to be located at a suitable site within the park in the Western  Tana  Basin. The objective is to open up the Eastern Tourism Circuit linked to the Meru tourism region. The project shall create a lion safari circuit with a potential for other products such as river rafting and cruising.

 

Sibiloi Lodge Project:

A 35-roomed lodge of 2-star category is proposed to be located at Sibiloi  National Park in the North Turkana, which would increase utilisation of this vast park and ease off tourist congestion in other parks with similar flora and fauna. It also targets tourists from the Northern Kenya and Southern Sudan region.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

USEFUL CONTACTS:

 

 

1.                  Managing Director

Investment Promotion Centre

P.O. Box 55704

NAIROBI

 

2.                  Mombasa and Coast Tourist Association

P.O. Box 99596

Tel: 011-225428/311231

Fax: 316519

E-mail: [email protected]

Website: www.ipckenya.org

 

MOMBASA

 

3.                  Kenya Association of Tour Operators

P.O. Box 48461

Tel: 225570

Fax: 218402 E-mail: [email protected]

NAIROBI.

 

4.                  Kenya Association of Hotelkeepers and Caterers

P.O. Box 46406

Tel: 726642/0/721505/602538/604419

Fax: 714401

NAIROBI

 

5.                  Kenya Tourist Development Corporation (KTDC)

P.O. Box 42013

Fax: 227815

E-mail: [email protected]

Website: www.ktdc.co.ke

NAIROBI

 

 

6.                  Kenya Tourism Board (KTB)

P.O. Box 30630-00100

Fax: 719925

E-mail: [email protected]

Website: www.kenyatourism.org

NAIROBI.