Impact of tourism grossly underestimated in Kenya

A report that was released Monday revealed that the economic impact of tourism in the country had been grossly underestimated.

The report commissioned by the Tourism Trust Fund and financed by the European Union involved research carried out over a period of 8 months involving both the private and public sectors.

Tourism Trust Fund Chief Executive Dan Kagagi said findings according to the report revealed the country earned 44 percent more than recorded in tourism earnings last year.

According to statistics by the Kenya Tourism Board, the body in charge of marketing the sector in the country, tourism earnings for the country last year amounted to Sh56 billion.

However in an interesting turn of events the new reports estimate the earnings for last year to be almost double the initial at Sh100 billion.

Kagagi said the extra earnings reflected in the new report were collected from expenditure from road tourism, domestic tourism and strip-out business.

“According to the research the country earned Sh13.4 billion, domestic tourism contributed Sh10 billion, while the rest of the figure from strip business resulted from this two earnings,” said Kagagi.

Lead Consultant for the research David McEwan is now proposing the use of tourism satellite technology as the best measuring tool for the industry.

McEwan said this kind of measuring tool allows for the collection of more accurate data as it reflects on every little statistical change. No country in Africa has embraced this technology and it can only be found in big economies like France, United Kingdom and Canada.

Meanwhile the tourism industry will from next year be recognized as a stand alone sector in the budget.

Finance Amos Kimunya said that this will be in respect of the new planning process that will incorporate Vision 2030.

Kimunya said that despite the Government’s recognition of the sector’s major contribution as the country’s biggest foreign earner, it would be impossible to change the planning process now.

“We have recognized the huge role of the industry in the economy and this will now be translated in the budget process next year,” said Kimunya.

Currently the sector is cluttered under the General Service Sectors in the budget.

Time and again various players in the tourism industry have raised concern that this downgrades the industry and denies it the kind of attention it deserves.

Report by Charity Katago, Nairobi