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Elephants at the Tsavo West National Park, near Voi. | Coastweek
VOI Tsavo West National Park (Xinhua) -- Elephants at the Tsavo West National Park, near Voi. The Kenya Wildlife Service (KWS) recently conducted an aerial census on elephants and other large mammals at the 48,656 square-kilometer Tsavo-Mkomkazi ecosystem straddling the Kenya-Tanzania border to strengthen their protection amid multiple threats. XINHUA PHOTO - SUN RUIBO

Decade of positive growth predicted for Kenyan tourism industry

MOMBASA -- According to the World Travel and Tourism Council (WTTC) benchmarking report 2017, Kenya’s Travel and Tourism GDP is projected to grow at six per cent annually, just ahead of total economy growth at 5.9 per cent.

Speaking in Mombasa, Mike Kirkland, Chairman of Southern Cross Safaris, Satao Elerai and Satao Camp in Kenya and Bench International in Australia, commented:

"This is really very encouraging news not only for tourism in Kenya, but particularly the well established international hotel and holiday industry along the Kenya coast.

"This is a most positive long term outlook for Kenya tourism and the projected growth figures speak for themselves."

How does travel and tourism in Kenya compare to other sectors:

GDP - SIZE: Travel and Tourism generated a total contribution of $7 billion to Kenya’s GDP in 2016.

Travel and Tourism total GDP impact is Larger than that of the mining, automotive manufacturing, and chemicals manufacturing sectors.

In terms of its direct GDP, Travel and Tourism is more than three times the size of the automotive manufacturing industry in Kenya.

GDP - SHARE: Based on its direct, indirect, and induced GDP impact, Travel and Tourism generated 9.8 per cent of Kenya’s GDP in 2016.

This is larger than the size of the chemicals manufacturing sector’s GDP impact at 4.2 per cent.

EMPLOYMENT - SIZE: Travel and Tourism sustained a total of 1.1 million direct, indirect, and induced jobs in Kenya in 2016.

Travel and Tourism in Kenya directly employs more people than the automotive manufacturing, mining, chemicals manufacturing, banking, and financial services sectors.

Of note, Travel and Tourism directly supports nearly three times as many jobs as the banking sector and more than twice as many jobs as the financial services sector in Kenya.

EMPLOYMENT - SHARE: Travel and Tourism generated, either directly or indirectLy, 9.2 per cent of Kenya’s employment in 2016.

For every job directly in the Tourism sector, nearly two additional jobs are created on an indirect or induced basis, making its linkages stronger than in the agriculture sector.

GROWTH - TRENDS: Travel and Tourism direct sector GDP expanded 75.7 per cent between 1997 and 2016 while the total economy expanded 125 per cent.

The automotive manufacturing industry contracted 5.4 per cent and the chemicals manufacturing industry expanded 53.5 per cent over this 19-year period.

GROWTH - FORECAST: Travel and Tourism GDP is expected to grow at an annual average of 6.0 per cent over the next decade.

In comparison, the total economy is expected to expand 5.9 per cent per annum while the automotive manufacturing and agriculture sectors are forecast to grow 4.3 per cent and 5.1 per cent per annum, respectively, In real, inflation-adjusted terms.

EXPORTS - TRAVEL AND TOURISM SHARE OF EXPORTS: Travel and Tourism is a significant source of export revenue for Kenya.

In 2016, visitor exports totaled $1.7 billion. This was 37.7 per cent of all service exports and 15.8 per cent of all exports (including goods and services).

EXPORTS - GROWTH OF TRAVEL AND TOURISM EXPORTS: Between 1997 and 2016 Kenya’s Travel and Tourism exports expanded 86 per cent.

Total exports of goods and services outpaced Travel and Tourism Exports and grew 265 per cent between 1997 and 2016.

METHODOLOGY: The World Travel and Tourism Council (WTTC) has spearheaded global analysis of the economic importance of the sector for over 2.5 years.

This research has estabhshed the contribution of Travel and Tourism on an ongoing basis to over 180 countries in absolute size, share of the economy, and growth.

Around the world, WTTC research is referenced as the authoritative source of the role of Travel and Tourism in generating GDP, employment, exports, and investment.

This research compares the role that Travel and Tourism piays in the world economy with other economic sectors.

The results of these comparisons provide new perspectives on the relative significance of Travel and Tourism, as well as some of its unique advantages in driving current and future global economic growth.

This updated WTTC research benchmarks Travel and Tourism against an assortment of other sectors for 27 countries and for each world region.

Source: World Travel and Tourism Council:
Travel and Tourism Benchmarking Reports 2017 - March 2017.
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