Economy could be in limbo as tourists flee

By WINSLEY MASESE

The economy could be hard hit by the persistent terrorist attacks in Nairobi and the Coast region, a tourism lobby has warned. Kenya could also miss its revenue targets for the 2014/2015 financial year if the Government does not move to restore confidence in the tourism industry.

The Kenya Tourism Federation (KTF) said revenues from the sector will nosedive as one of the largest British tour operators has cancelled chartered flights until October 31. This coincides with the period when Kenya receives the highest number of tourists – between mid-July and October.

KTF Chief Executive Agatha Juma said about 700 guests were waiting to be evacuated by yesterday.

“The sector will lose about Sh5 billion with these cancellations and something needs to be done urgently,” she said, and blamed the Government for its lacklustre reaction and sometimes inaction.

“The Government should give an update of what is happening and what it is doing to tourists and investors.

“Addressing the media in Nairobi yesterday, Ms Juma said the sector would be severely hit as it would be harder to market Kenya as a tourist destination.

“Until the travel advisories are reversed, marketing efforts currently underway in these countries by both the Government and the private sector are a waste of resources,” she said.

The federation also hit out at the Foreign and Commonwealth Office statement discouraging all but essential travel to certain areas in the country, including some parts of the Kenyan coast.

Reading a statement on behalf of KTF members, Juma noted the country will see a decline in forex income as well as tax revenues.

“Counties that rely on tourism should factor in a 30 per cent drop in their projected revenues; even more than that,” she warned.

The US, UK, France and Australia have issued travel advisories against their citizens staying at the Coast or intending to travel to the country.

On Thursday evening, chartered aircraft arrived from Europe and left Mombasa International Airport with hundreds of tourists fearing terrorist attacks.

Kenya Union of Domestic, Hotel, Educational Institutions, Hospitals and Allied Workers (Kudheiha) Secretary General Albert Njeru said although the situation has been blown out of proportion, the President should address the nation.

“We are going to face massive job cuts in the tourism and hotel industry and the situation must be addressed urgently,” he urged.

Kenya Tour Operators Association chairman Fred Kaigwa said the current situation was due to failure to address some past issues such as the incursion into Somalia.

“This situation needs adequate financial machinery from the Government and other stakeholders to reverse the trend lest the sector is brought to its knees,” he added.