Economic Recession, Competition hits Kenya's Tourism

By Trek East Africa Safaris Correspondent

NAIROBI, KENYA

Fluctuating fuel prices coupled with post election chaos and competition affected Kenya's rankings in 2008.

The Managing Director Kenya Wildlife Service (KWS) Mr. Julius Kipngetich warned last Tuesday that the country’s key source markets were under severe attack from key competitors. He said that there was need for the government to defend Kenya's existing markets at this particular time of the global recession.

Kipngetich further said that, “Kenya's forays into China and other countries should hold because these markets are also under serious attack by several competitors, especially Tanzania.

Details of Kenya’s performance at the just concluded ITB exhibition held in Berlin, Germany remained scanty; Kipngetich said he would brief the media in the coming days.

Najib Balala, the Tourism minister who led the ITB delegation said most prospective tourists were still skeptical of the country’s security given the negative media reports in light of the return of the ‘Mungiki Sect’ ritual killings.

However, the Chairperson of the Kenya Tourism Federation Ms. Lucy Karume, revealed that Kenya’s four biggest markets USA, UK, Italy and Germany accounted for 38% of the revenue earned from Tourism, which equaled to all the other 23 destinations. This she said, "shows why Kenya's source markets cannot be replaced by numbers from the emerging markets”.

Different tourism players in Kenya have proposed that government comes up with a stimulus package for the airline industry and also improve on the product pricing.

Kipngetich also noted the need for the re-capitalization of the Kenya Tourism Development Corporation (KTDC) that could be used to finance the construction of new lodges in the country since according to him banks do not lend money to tourism investments that usually have long term pay back periods.