Kenya tourism earnings up 30%

Kenya's tourism industry has witnessed a remarkable growth in 2024, with a sharp 30% increase in earnings totaling over Ksh400 billion. The sector welcomed 2.5 million international tourists, surpassing its previous record and marking a significant milestone. In an exclusive interview with CNBC Africa, June Chepkemei, the CEO of the Kenya Tourism Board, shared insights into the driving forces behind this exceptional growth and the promising outlook for 2025. The tourism sector is poised for continued expansion, with ambitious targets set for both international and domestic tourism. Chepkemei highlighted that 2025 is expected to be even brighter, with projections aiming to reach 3 million arrivals by the end of the year. The positive trajectory in earnings and arrivals, coupled with a thriving local tourism sector, underscores Kenya's appeal as a top destination. To sustain this growth, the Kenya Tourism Board is implementing key initiatives focused on marketing, brand strengthening, infrastructure development, and product diversification. One of the pivotal strategies driving the industry's success has been a robust marketing campaign centered around the 'Magical Kenya' brand. By showcasing the country's diverse offerings, including sports tourism, cultural tourism, and ecotourism, Kenya has been able to attract a broader audience. Additionally, advancements in digital marketing and a focus on adventure tourism have further boosted the sector's appeal. Furthermore, Chepkemei emphasized the importance of domestic tourism in safeguarding the industry from external uncertainties. By encouraging local travel and exploration, Kenya aims to reduce its reliance on international visitors and insulate the sector from global economic fluctuations. The CEO noted that the sector's resilience and strong performance amidst challenges highlight its potential for sustained growth. In terms of global economic trends, Chepkemei addressed the impact of a strengthening US dollar on tourism receipts. Despite currency fluctuations, the tourism industry has demonstrated resilience, driven by evolving consumer preferences for sustainable, wellness-focused, and technologically advanced travel experiences. The CEO emphasized the role of youth travelers and digital innovations in shaping the future of global tourism. Regarding taxation policies, Chepkemei underscored the government's supportive measures to stimulate tourism investment. Incentives such as capital allowances, VAT exemptions, and tax breaks on international travel have incentivized the development of luxury facilities and infrastructure in Kenya. The CEO expressed confidence in the government's policies to bolster the sector's growth, while also advocating for ongoing dialogue with industry stakeholders on potential tax implications. As Kenya's tourism industry continues to thrive, Chepkemei highlighted the importance of leveraging local offerings, enhancing destination appeal, and fostering sustainable practices to navigate future challenges. With a steadfast focus on innovation, diversification, and collaboration, the country's tourism sector is well-positioned to sustain its upward trajectory and drive economic prosperity in the years to come.