Business & Financial News

Why Balala’s return could rescue Kenya’s struggling Tourism industry

By BF staff writer

The return of Najib Balala to the tourism ministry from the mining portfolio has been wildly celebrated by industry players who have expressed joy on his nomination to head the docket which fell vacant following the cabinet reshuffle that saw former bearer CS Phyllis Kandie shifted to the labor ministry.
In his cabinet reshuffle Tuesday night, President Uhuru Kenyatta hived off the tourism ministry from the larger EAC and handed it over to Balala who will now head the critical docket as a stand-alone ministry – much to the delight of stakeholders in the industry.
In a telephone interview with People Daily, Kenya Coast Tourism Association (KCTA) chairman who is also a serial hotelier Mohamed Hersi said Balala’s return to the ministry looks certain to boost the sector’s reputation especially during this time the country’s tourism decline continues to gather speed.
Kenya’s visitors’ numbers have dropped by 25 percent in the first five months of the year with British visitors – the biggest contingent of tourists who visits the country having fallen by an even steeper 35 percent coupled with other factors such as travel advisories and terrorism scares.

“We thank the President for listening to our pleas to give us a stand-alone ministry, handing it over to Balala –a man who we wanted and one who understands the industry and doesn’t need introduction to any insider or outsider on matters tourism, it also means that our recovery is going to be made much easier,” he said, adding that his past experiences makes him an ideal nominee to steer the sector’s recovery and that his arrival could salvage the battered industry.

His recommendation however will be subject to parliament’s approval upon vetting.
Data from Kenya Tourism Board (KTB) shows there has been a downturn of arrivals in Nairobi for instance for the first six months of the year which stood at 12.3percent translating to 358,977 compared to 409,130 the same period last year. June performance was the worst period, with an average decline of 51.6 percent.
Latest statistics further show that Balala is arguably the most successful tourism minister Kenya has ever had in comparison to his earlier predecessors, having served for five years between 2008 to 2012 – taking over the docket when tourism figures were dwindling and had hit an all-time low of negative 80 percent compared to the previous year.
Following the Post-election violence the country’s tourism volumes declined in all its key source markets such as UK, France, Italy and Germany by over 60 percent.
In 2010, the country achieved the highest ever figure in tourism earnings of 73.7billion under Balala’s stewardship. A year later (2011) the ministry attained the highest peak of 2 million mark in tourism arrivals and further generated Sh98billion to the country’s GDP in earnings.
Under his leadership the country signed first ever global media campaign with CNN with assistance of the European Union (EU) as well as the launch of Recovery Charter Business – which paved way for the entry of new charters into the local aviation market including aircrafts like Korea Airlines, Etihad Airlines, Virgin Atlantic and Jordanian Royal Airlines.

Leave A Reply

Your email address will not be published.

You cannot copy content of this page