KENYA SEEKS TO ATTRACT MORE BUSINESS
TOURISTS
Kenya is angling for a piece of the
Sh2.6 trillion global conference tourism market to bolster the return of a
sector recognised as a key foreign exchange earner.The ministry of Tourism
plans to establish Meetings, Incentives, Conferencing and Events (Mice) centres
in all 47 counties to attract investors in the hospitality industry interested
in setting up prime hotel facilities to attract tourists.
According to Tourism PS Ruth Solitei,
the ministry intends to devolve this Mice segment of tourism to the counties
following the establishment of regional secretariats.In addition to Nairobi,
other counties being initially targeted include Mombasa, Kisumu, Nakuru, Isiolo
and Naivasha.
In Africa, Kenya is only second to
South Africa as the most preferred Mice and business tourism destination,
according to the International Congress and Convention Association (ICCA).Players
in the hotel sector, which accounts for 60 per cent of market share, have
touted this as the next high growth segment for the industry. Already, several
reputable international brands like Hemingways and Kempiski are opening hotels
between now and 2014.
Kempiski, established in 1897 as a
luxury hotel group, recently opened Villa Rosa on Waiyaki Way in Nairobi. In
the coming months, other hotels, including Emaar, Radisson Blu, Marriot, Park
Inn Hilton, Lonrho hotels and Rezidor are expected to set up base in Kenya as
the country positions itself as the premier financial, travel and business hub
in East and Central Africa.
Industry players say that between
10,000 and 15,000 hotel rooms will be required within the next five to 10 years
to satisfy the demand for rooms that’s expected from a burgeoning Mice segment.Kenya,
ranked 58th globally among the most preferred Mice destinations, is now moving
to capitalise on the ranking by increasing investments in the hotel sector,
infrastructural improvement, security and diversification of tourist
attractions.
The earning potential for this segment
is expected to exceed 60 per cent of the total earnings in the tourism sector
in coming years as more and more people travel both for business and pleasure.This
is compared to the past where most of the earnings from tourism were drawn from
the leisure segment with travellers seeking to sample Kenya’s beach and safari
attractions.“This is the fastest-growing industry in the world, with a 20 per
cent growth rate,” Kenyatta International Conference Centre Managing Director
Fred Simiyu said.
Travel advisories
Last year, Kenya earned Sh96 billion
from tourism with the Mice segment reported to have contributed significantly
to the earnings. International visitor arrivals stood at 1.7 million last year,
a decline of 5.5 per cent from 1.8 million in 2011 with the sector’s
performance affected by a slowdown in the global economy, especially in the
euro zone, coupled with travel advisories stemming from security concerns.The
lack of high-quality hotels and infrastructure has stifled the growth of the
Mice segment as international business travellers seek alternative
destinations.
Last year, the United States held more
than 800 global conferences compared to just 29 that convened in Kenya.
Locally, city conferencing has proved to be the most popular owing to the more
business-oriented nature of cities and the availability of a wide range of
facilities.Nairobi, which emerged as the 100th best destination globally from
104 the previous year, and second-best after Cape Town in South Africa, hosted
22 of the international meetings. Mombasa and Naivasha hosted two conferences
each, while Embu, Nakuru and Eldoret each hosted a single event.
Last year, Naivasha made its debut in
the continental rankings of most popular international meetings destination.The
town, famed for its horticultural products — one of Kenya’s other leading
foreign exchange earners — was ranked 34th according to the International
Congress and Convention Association.We have always regarded Naivasha as a
destination for domestic conferences, but in the international market it is
also ranked as one of the upcoming cities in the world for conference tourism,”
Ms Solitei said.
“This justifies the need for more
convention and conference facilities of international standards in every county.
We need more accommodation, more bed capacity, ideal transport and
communication infrastructure to raise the attractiveness and capacity of
destinations.”The government has sent a delegation to the the International
Meetings and Exhibitions conference in Frankfurt, Germany to bid to host some
of the major international conferences expected to be held this year.Potential investors
Land has been identified in Mombasa’s Bamburi area where the government plans to establish a green convention centre.Feasibility surveys have also been carried out in Kisumu and Isiolo, and talks are underway with potential investors to set up additional facilities.According to research conducted by Kenyatta University, the potential for the Mice tourism segment is under-exploited due to the country’s emphasis on nature-based tourism destination with wildlife accounting for over 85 per cent of tourist arrivals.The report recommends that properly structured foundational activities need to be put in place to build a strong destination-based conference tourism brand.
