STATEMENT BY HIS EXCELLENCY HON. UHURU KENYATTA, C.G.H.

,
PRESIDENT AND COMMANDER IN CHIEF OF THE DEFENCE FORCES OF
THE REPUBLIC OF KENYA ON THE TOURISM SECTOR, ISSUED AT STATE
HOUSE, NAIROBI, 23RD MAY, 2014
Fellow Kenyans,
As Kenyans are aware, the Tourism sector plays an important role in our
economic development, both directly and indirectly. Since last year, the sector
has experienced some challenges, which have impacted negatively on its
performance.
After growing strongly and steadily between 2! and 2", tourism sector
su#ered its worse when the international arrivals declined by $! percent due
to, among others, the election related challenges and impact of international
economic and %nancial crises.
&ast year, international arrivals dropped further due to security related
challenges. 'ith the recent advisories from some in our traditional source
mar(et that account for about )* percent, tourism sector is li(ely to continue
facing di+culties.
,n view of the importance of the tourism sector in Kenya-s economy, especially
its multiplier e#ect on various sectors, the .overnment and sta(eholders have
agreed measures to get the numbers bac( into our hotels, and growing it on a
sustained basis to at least ! million visitors annually in a decade.
, now turn to the speci%c measures to stimulate tourism sector recovery
First, under Tax measures, the .overnment, with e#ect from !2
th
/une
2!), will allow all corporate and business entities to pay vacation trip
expenses for their sta# on annual leave in Kenya and deduct such
expenditures in their taxes.
Through this measure, we shall directly give at least 20, Kenyans a
chance to go for a wee(-s holiday every month at the expense of their
employers, bringing to total over $, additional Kenyan guests in our
hotels throughout the country.
Second, with e#ect from 21
th
2ay 2!), all air tic(eting services supplied
by travel agents shall be exempt under the 3AT Act, 2!$ so as to
enhance our competitiveness in the region.
Third, all outstanding income tax related refunds amounting owed to the
tourism industry players will paid out by Kenya 4evenue Authority not
later than next Thursday 21
th
2ay 2!). 'e expect this measure to
improve sector li5uidity and cash67ow8
Fourth, to further encourage local guests in our 9ational par(s and
attract both regional and international tourists, all par( fees currently set
at :S;1 per non6resident and KShs.!,2 per resident guest shall be
reduced to :S;.< and KShs.!,, respectively, e#ective !2
th
/une 2!).
Fifth, to encourage both local and international 7ights into 2oi
,nternational Airport and 2alindi Airport, the .overnment has reduced,
with immediate e#ect, the landing charges by ) percent and ! percent,
respectively.
Sixth, .overnment has, with immediate e#ect, revo(ed the 9ational
Treasury =ircular restricting the public service from holding conferences
and other meetings in private hotels. ,t will now be possible for the public
sector to hold conferences and meetings in private hotels throughout the
country as when the need arises8
Seventh, the .overnment has allocated ade5uate resources to expand
2alindi Airport to international standards to allow for larger commercial
aircrafts to land. This will encourage growth of charter tourism.
>ighth, all budgetary resources, at the 9ational .overnment, earmar(ed
for foreign travel will, in Supplementary ,,, be reallocated to domestic
travel to further give impetus to tourism sector recovery. Similarly, we
urge ?arliament and the /udiciary to do the same.
9inth, the 9ational .overnment urges the =ounty .overnments to
reallocate all their foreign travels budgets to domestic travels in order to
spur growth of domestic tourism and sustain employment.
,n addition, the industry has identi%ed a raft of measures, which will
complement .overnment-s initiatives. ,n particular@
First, The industry will o#er better vacation pac(age to Kenyans
compared to what they o#er international pac(age tours, estimated at
about :S; * daily per person on full board8
Second, The .overnment and ,ndustry will develop an interactive Kenya
Tourism ?ortal, within a wee(, to promote and manage boo(ing and
distribution of domestic guests under the Tourism Stimulus ?rogram
Third, The .overnment and ,ndustry will, within two wee(s, develop a
comprehensive promotional campaign program to populariAe both
international and domestic tourism.
And for the 2edium to &ong Term measures, the .overnment will shortly
reconstitute a Tas( Force with a mandate of developing a strategy to address
underlying challenges and positioning Kenya as the preferred destination for
safari, commercial, educational and health, conferencing and professional
services in Africa, attracting at least 0 million guests in the next 0 years.
Than( you and .od bless you