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Investment Opportunities Available Within the Tourism and Hospitality Sector in Kenya

Investment Opportunities Available Within the Tourism and Hospitality Sector in Kenya. By Dr. Ibrahim Mohamed Principal Secretary Ministry of East African Affairs, Commerce and Tourism Department of Commerce and Tourism. Content. Background. Reasons to Invest in Kenya’s tourism Sector.

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Investment Opportunities Available Within the Tourism and Hospitality Sector in Kenya

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  1. Investment Opportunities Available Within the Tourism and Hospitality Sector in Kenya By Dr. Ibrahim Mohamed Principal Secretary Ministry of East African Affairs, Commerce and Tourism Department of Commerce and Tourism

  2. Content Background Reasons to Invest in Kenya’s tourism Sector Investment in New Tourist Attractions Investment in Accommodation Facilities Investment in Food and Beverage Services Investment in Travel Facilitation Investment in Tourism and Hospitality Training Tourism Support Infrastructure Financing Models Investment Incentives

  3. Background • Economic Contribution of Tourism • 10% of the GDP • A leading Foreign Exchange Earner (20%) • 9% of Total Wage Employment • Identified as one of the key economic drivers under Vision 2030 • Tourist arrivals projected to increase from 1.7 million in 2012 to 3 million 2017 • Kenya’s tourism Product • Diverse wildlife, beautiful scenery, wilderness, pleasant climate & white sandy beaches • Rich cultural and historical heritage

  4. Reasons to Invest in Kenya’s Tourism & Hospitality Industry • Fully liberalized economy with a free foreign exchange regime • Strategic location –for Eastern & Central Africa with a coastline and a port at Mombasa (new port at Lamu being developed) • Massive infrastructural development going on or planned. E.g LAPSSET Project, Standard Gauge Railway, Expansion of JKIA • Developed Air transportation system (Regional hub)

  5. Reasons to Invest in Kenya’s Tourism & Hospitality Sector • Membership to regional trading blocs COMESA, EAC • Prospects for Oil, natural gas and Coal to reduce cost of energy • Devolved system of governance to open up investment opportunities in counties. • Improved regulatory and licensing regime e.g. One-stop shop initiative.

  6. Investment in New Tourist Attractions and Niche Tourism Products • Development of 3 high end resort cities in Isiolo, Turkana and Lamu (Land identified in Isiolo and Turkana). • Investment in conference facilities in major cities e.g Nairobi, Mombasa, Kisumu • Proposed sites for conference facilities include Mombasa and Nairobi • Health and Medical Tourism • Agro-tourism • Cultural – Heritage Tourism

  7. Investment in New Tourist Attractions and Niche Tourism Products Vipingo Ridge - Kilifi • Sports tourism • Golf resorts • Water-sport facilities and marina across Kenyan water ways • Shopping malls • Recreational facilities and theme parks English Point - Mombasa

  8. Investment in Accommodation Facilities • We require 30,000 additional beds in high quality accommodation facilities by 2017 • International standard hotel at Bomas of Kenya adjacent to Nairobi National Park (80 acres available) • Development of a Lake View Resort in Kisumu (20 acres available) • Hotels in the proposed Integrated cities e.gKonza and Machakos • Real estate facilities apartments and Homestays

  9. Investment in Accommodation Facilities (Contd) • Eco-lodges and Luxury Tented Camps • 2 sites in the Meru Conservation Area • 6 sites –Western region • 11 sites –Tsavo East & West • 1 site - North-Eastern (MarsabitNat.Reserve) • 5 sites – Northern Area (Sibilio, L.Turkana, L.Baringo and L.Bogoria • Other sites outside protected areas

  10. Eco-lodge facility

  11. Investment in Food and Beverage Services • Specialty restaurants – expanding markets demand for diversified cuisine • Outside catering services

  12. Investment in Travel Facilitation • Regional and domestic air services e.g Local charters, low cost airlines • Tour Operations • Travel Agents • Short-duration cruises (Coast, L.Victoria)

  13. Investment in Tourism & Hospitality Training • Ronald NgalaUtalii College – 60 Acres in Kilifi, Coast • Encouraging development of other privately owned institutions

  14. Investment in Tourism Support Infrastructure • Superhighways e.g from Mombasa (Kenya) to Kigali (Rwanda), Moi Int. Airport – Milindi Road • Proposed mass rapid transit system will require investments in buses, traffic control systems, etc • Power generation plants (Geothermal, Hydropower, wind power, etc) • Renewable energy equipment • Telecommunication services

  15. Financing Models • Short –term and long-term loans by Tourism Finance Corporation (Kenya Tourism Development Corporation) • Public Private Partnerships (PPP) • Build Operate and Transfer (BOT):is a form of project financing, wherein a private entity receives a concession from the private or public sector to finance, design, construct, and operate a facility stated in the concession contract. • Commercial Bank loans

  16. Thank You

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