Kenya’s tourism sector now game for bigger local market

Loading player...
At a time when hundreds of thousands of tourists would be making their way to Kenya to witness the famed wildebeest migration in the Maasai Mara, the national reserve is quiet in 2020 as Covid-19 puts a stop to tourist arrivals in East Africa’s largest economy.

Despite the removal of an international travel ban on August 1, tourists are expected to return only in limited numbers as the government requires all travellers to carry negative Covid-19 certificates and it limits entries to countries with low infection rates.

For a sector that makes up about 10% of GDP, the loss of virtually all tourist arrivals since March has spelt disaster for hotels and tour operators that once relied on a steady stream of long-haul visitors.

Though the government set aside $5m to support the ailing sector, industry losses of $752m have forced several large hotels to close.

While industry insiders believe the international market could take up to four years to fully recover, many businesses are entering uncharted waters as they attempt to refashion themselves for domestic consumers.

“It’s a strategic repositioning,” says Muthuri Kinyamu, cofounder of Turnup. Travel, a tour operator that provides services for Kenyan tourists. “If all your relationships have been with Australia and the UK, and you have done that for about a decade, then of course there will be some challenges when you come to focus on the domestic and local tourism angle.”

Some companies have already experienced difficulties when communicating with the local marketplace.

The Giraffe Manor, one of Nairobi’s most expensive hotels, faced a torrent of criticism after it announced on social media that it would be “opening for Kenyans from June 1” — implying it had previously been available to wealthy foreigners only.

Aside from marketing issues, the repositioning is expected to offer handsome returns for savvy businesses as Kenya’s extensive middle class provides for a thriving domestic tourism market relative to other African countries.

The key will be understanding how to tap into this market while recognising the fundamental changes brought about by Covid-19, Kinyamu adds.

“I feel proximity has become a lot more important,” he says. “People are not necessarily looking at driving for longer periods of time or going on long breaks. They want to explore around themselves first. People from Nairobi will start by exploring the local area, then to Maasai Mara, and perhaps onwards to Zanzibar by Christmas.” ...
10 Aug 2020 10AM English South Africa Business News · News

Other recent episodes

Toyota Motors SA CEO Andrew Kirby

Business Day Senior Motoring correspondent Phuti Mpyane chats to Toyota Motors SA CEO Andrew Kirby about the threats to exports, tax and Chinese vehicles in SA.
24 Oct 2024 9AM 39 min

Ford injects R5bn into production of hybrid-electric bakkies

Business Day editor-in-chief Alexander Parker speaks to Ford Africa president Neale Hill about the company's decision to spend R5.2bn to turn its SA subsidiary into the only global manufacturer of plug-in, hybrid-electric Ranger bakkies.
8 Nov 2023 9AM 13 min

Digital innovation no longer up in the clouds

The Covid-19 pandemic is the ultimate catalyst for digital transformation and will greatly accelerate several trends already well under way before the pandemic. According to research by Vodafone, 71% of firms have made at least one new technology investment in direct response to the pandemic. This shows that businesses are…
13 Sep 2020 4PM 6 min