Govt. to Set Up Hotel Fund in Bid to Boost Tourism Revenue in Kenya

Posted on :Tuesday , 29th March 2016

Kenya's Tourism Ministry plans to set up a hotel refurbishment fund as part of plans to boost tourism revenues. Efforts are also being intensified to attract more charter flights.

Tourism Cabinet Secretary Najib Balala said the fund would enable investors to obtain credit more easily to give their facilities a face-lift.

"There are many old hotels that can be upgraded to attract more tourists, but their owners cannot secure financing," said Mr Balala.

The Kenya Association of Hotel keepers and Caterers Coast branch executive Sam Ikwaye welcomed the move, saying access to credit has been impossible due to lengthy procedures.

"We hope the expected fund will come in handy, but the government should come up with more direct incentives to the investors," said Mr Ikwaye.

Chartered planes

The ministry is also in talks with Italian leisure charter airline Neos S P A, which has applied for licences to operate flights between Malpensa in Italy and Mombasa twice a week. The airline is also seeking to fly directly from Poland and Egypt to Mombasa, twice weekly.

Poland's Small Planet Airlines has also applied for a licence to operate weekly flights to Kenya.

Mr Balala launched a Ksh1.2 billion ($11.9 million) Charter Incentive Programme in January, aimed at reducing costs and recovering lost business from tourist charter companies. Charter planes bringing in visitors at a capacity of 80 per cent and above are entitled to a $30 rebate per person.

Kenya's tourism sector is still recovering from shocks related to insecurity dating back to 2011.

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