• The sector rebounded in 2022 due to a 70.45% increase in international arrivals.
• According to official government figures, the number of arrivals increased to 1,483,753 from870,463 in 2021.
• Rebound attributed to a number of source countries relaxing Covid-19 limitations and opening up travel.

The tourist industry in Kenya is prepared for a significant boom this year, following last year’s good performance buoyed by the resumption of the post-pandemic international travel and robust tourism activities.

The sector, which offers great investment potential primarily in hotel facilities, tour and travel businesses, and travel agencies, rebounded in 2022 due to a 70.45% increase in international arrivals.

According to official government figures, the number of arrivals increased to 1,483,753 from870,463 in 2021.

The Tourism Research Institute (TRI) attributes the rebound to a number of source countries relaxing their Covid-19 limitations and opening up travel.

Prior to the pandemic, the sector contributed 10.4% of the country’s gross domestic product, 5.5% of Kenya’s formal employment, and 4.2% of the National Gross Fixed Capital Creation.

It contributes to the socioeconomic well-being of the country’s population through multiplier effects in trade, agriculture, construction, manufacturing, and transportation, among other components of the supply chain.

Kenya staged a peaceful election in August, which resulted in a seamless change of government, demonstrating the importance of peaceful elections for an economy.

After the election, succeeding months performed well, and growth was sustained, peaking in December with 160,557 monthly arrivals.

The region’s aviation center and home to Kenya Airways–Jomo Kenyatta International Airport (JKIA) was the primary point of entry, with arrivals through the facility jumping 64.97 percent compared to the previous year, when over one million entries were recorded (1,062,762).

This is an increase from the 644,194 international arrivals registered in 2021. Moi International Airport in Mombasa, one of the country’s most popular beach destinations; saw a rise in arrivals of 65.9%.

The number of international visitors who entered the country via the second largest airport increased from 48,749 the previous year to 84,860.

There were also a significant number of cross-border movements between Kenya and her neighbors, primarily Uganda and Tanzania, which are two of the region’s most important commercial partners.

Leading market sources

Last year, at least 209,360 Americans traveled to Kenya, maintaining its status as the country’s leading supplier of international tourists.

Uganda remained in second place with 151,121 arrivals, while the United Kingdom was the third largest source of visitors with 131,526.The US source market last year was 82% compared to 2019, when it 245,437 arrivals, signaling a steady resumption of pre-covid numbers.

Tourists from the UK also showed significant recovery with a 72% bounce from the 181,484arrivals in 2019. Tanzania(123,836), India (83,106), Germany (53,498), Rwanda (48,232), and Somalia (40,133)rounded out the top ten countries of origin, while Ethiopia fell off the list with 36,581 arrivals.

Twelve of the top 30 source markets were from Europe, which accounted for 40 percent ofoverall arrivals.

Many citizens and residents of France, Italy, the Netherlands, Sweden, Spain, Denmark, Norway, and Belgium visited Kenya throughout the year.

Newer promising sources included Canada, China, Australia, and the UN.

Kenya also saw a rise in visitors from South Sudan, Nigeria, Burundi, Democratic Republic of the Congo, Ghana, and Zimbabwe, countries with which it just inked a visa-free travel agreement.

Overall, Australia had the highest rate of recovery as the country with the most improved source market.

The number of visitors from Australia climbed by 253 percent from 3,376 in2021 to 11,931 in 2022.

Italy ranked second with a rise of around 156% to 31,301 from 12,207 the previous year.

“Despite modest marketing initiatives, Australia and Canada have succeeded well. There is a need to increase marketing and brand visibility in these markets,” says the ministry.

Purpose of visit to Kenya

About 1.5 million people came to Kenya for various reasons, as the East African economic powerhouse continues to promote itself as a vital entrance point into the region and a top tourist destination.

543,458 people, or 36.63 percent of total arrivals, visited Kenya for a vacation during the year.

This was followed by family and friend visits, which accounted for 27.8 percent of all arrivals, or413,180 people. Visitors to Kenya for business-related Meetings, Incentives, Conferences, and Exhibitions numbered 404,183 (27.24%) of all arrivals.

There were also a substantial number of tourists for educational, medical, and sporting events.

Around five percent of the total population entered the country en route to other destinations, with JKIA retaining the region’s most important transit hub.

Prior to the Covid-19 pandemic, the number of tourists to Kenya was slightly above two million, a number that is anticipated to be reached this year as the government launches a strong push to assure the sector’s full recovery.

Global tourism context

Kenya’s current recovery rate of 72 percent is higher than the global average of 63 percent, but a stronger performance is projected this year.

According to the Global Tourism Barometer, the increase in pent-up demand and the relaxing of travel restrictions in a number of nations contributed to the stronger-than-anticipated performance of international tourism in 2022.Around 900 million tourists traveled internationally in 2022, which was double the number in2021 but 37 percent less than in 2019.

The UNWTO predicts that international visitor arrivals will reach 80to 95% of pre-pandemic levels by 2023, with Europe and the Middle East expected to approach these levels.

Yet, serious concerns, especially economic and geopolitical instability, remain.

According to the UNWTO’s projection for this year, “because to the economic conditions, tourists are expected to travel closer to home and seek the best value.”

The travel and tourism industry was one of the major employers in the world, accounting for one out of every four newly created employment, or 10.3% of all employees.

It employed nearly 333 million individuals and provided close to 10.3% of the global GDP, which is equivalent to $9.6 trillion.

During the same period, international visitor spending was $1.8 trillion, or 6.8% of total global exports.

Kenya’s earnings from tourism

During the period under review, Kenya’s inbound tourism revenues increased to USD2.2 billion (Sh268.1 billion) from USD1.16 billion (Sh146.5 billion) in the prior year.

The pace of growth indicates that overseas tourists visiting the country are spending more per capita.

This is partly attributable to the prolonged depreciation of the Kenyan shilling versus majorglobal currencies and the impact of local and global inflation.

Peninah Malonza, cabinet secretary for tourism, wildlife, and heritage, observes: “Diversification of products and experiences will allow us to increase per capita spending in the future.”

In 2020, at the height of the pandemic, earnings from the industry had fallen to USD702.8million (Sh88.6 billion), from a record USD2.34 billion (Sh296.2 billion) recorded in 2019, when the country recorded the biggest number of international tourist visits ever.

This year, Kenya anticipates to receive at least 2.3 million tourists, generating an estimated$3.37 billion (about Sh425.4 billion).

This is anticipated to increase to USD 3.55 billion (Sh447.5 billion) the following year, when overall arrivals are anticipated to reach a record-breaking 2.4 million.

To achieve sector growth, the government is eager to implement domestic and regional tourism promotion, the development and promotion of specialized products, the promotion of MICE, events, and festivals, and marketing in China and other growing markets.

It also intends to promote training and capacity building in collaboration with the private sector, develop aviation and access, assist tourist sector investments, and digitize tourism activities in the country.