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Kenya announces cash incentives for charter airlines

Monday, 21 December 20153 min read

Kenya has announced a raft of financial incentives to try to lure international tour operators back to its coastal resorts where business has dropped dramatically following a number of terrorist attacks.

It has scrapped landing fees at Mombasa and Malindi for charter airlines from January 2016 until June 2018 and it is offering a subsidy of US$30 for each international passenger who disembarks in Kenya during the same period.

In order to qualify for the incentives, a minimum of 80% of the airlines’ passengers must terminate their journey in Mombasa or Malindi and the airlines must commit to operating the route for at least two years.

Kenya’s new Cabinet Secretary for Tourism, Najib Balala, said the charter incentive programme was aimed at encouraging additional airlines to operate flights to Kenya and persuading existing airlines to increase their capacity.

Following a drop in international visitors to Kenya, some hotels have been forced to lay off workers, he said.

Mombasa is now served by only three charter airlines, down from 30 a few years ago. Major UK operators including Thomson, First Choice, Cosmos (now Monarch) and Kuoni evacuated their clients from Mombasa in May 2014 after the UK Foreign Office advised against travel to the area.

Kenya’s tourism secretary said security had improved and in October the UK Foreign Office lifted its advice to holidaymakers not to travel to the area of the Kenya coast from Malindi to the border of Tanzania.

In June, the Foreign Office lifted its advisory for travel to the area between Tiwi and Watamu, including Mombasa.

The charter incentive programme, which will cost Kenya around £7 million, will be monitored, evaluated and adjusted every six months ‘to suit prevailing market conditions’.

"We would wish to inform all airlines, tour operators and travel agents that control and organize tourist charters that Kenya is open for business," added Balala. "We encourage them to take up the CIP and further give us input on how to improve it as we go along."

Meanwhile, Air France has said an investigation into the suspect package on flight 463, from Mauritius to Paris, which caused the aircraft to make an emergency landing in Mombasa yesterday, was found not to be dangerous.