Kenya tourism to lose Sh 72 Billion due to travel restriction in COVID period

The decline in travel has subsequently caused job losses and pay cuts, as 81.3 % of tourist establishments have receded the number of employees in the industry, as per the Ministry of Tourism. However, international tourism could face a loss of more than $1 Trillion due to a decline in international tourist visits by 58% to 78% as said by tourism analysts earlier in November, which can reduce the Global GDP to up to 2.8 %.

Devdiscourse News Desk | Nairobi | Updated: 27-11-2020 14:33 IST | Created: 27-11-2020 14:33 IST
Kenya tourism to lose Sh 72 Billion due to travel restriction in COVID period
Representative image Image Credit: Kenya Tourism Board

The tourism sector of Kenya will lose Sh 72 billion due to COVID-19 curfews accounted for 2020, according to a report by Soko Directory.

The data is reportedly shown in a study by the government caused due to travel restrictions in international boundaries, local curfews, and the closure of all tourist sites in the country.

The hotels are to suffer a loss of Sh 56,000,000,000 affecting catering and other associated services causing a loss of Sh 16.2,000,000,000, according to Ukur Yatani, the Cabinet Secretary of National Treasury. As said by the Treasury, "a study commissioned by the Ministry of Tourism and Wildlife on the impact of Covid-19 estimates that the pandemic is likely to cost the industry a loss of $511 million in hotel revenue, $125 million in associated revenue, and Sh2.5 billion for catering levy".

One such trend was observed in a report by the Tourism Ministry earlier in June that stated passenger volumes declined 1.6,000,000 counting a loss of 35,000,000,000. Meanwhile, a new study by the Treasury read, "total arrivals as of April 2020 stood at 392,691, almost half the 619,698 recorded in the same period last year".

The decline in travel has subsequently caused job losses and pay cuts, as 81.3 % of tourist establishments have receded the number of employees in the industry, as per the Ministry of Tourism. However, international tourism could face a loss of more than $1 Trillion due to a decline in international tourist visits by 58% to 78% as said by tourism analysts earlier in November, which can reduce the Global GDP to up to 2.8 %.

According to the World Tourism Organization (UNWTO), international tourism observed a drop of 70 between January 2020 and August 2020.


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