Kenya banks on emerging markets to grow tourism

Eurozone debt crisis is keeping many policy-makers on the edges of seats.

It is a major concern because the world is just emerging from a damaging financial crisis and meltdown that saw job cuts, riots, and heavy business losses.

Reports that austerity measures are on the way are keeping markets alert as riots have started in Greece for fear of another round of pain, soul-searching and economic misery.

As is expected, the development will affect travel markets and known destinations like Kenya are all-ears.

Having suffered in 2008, tourism marketers are turning to their Plan B in case the volatility in Europe hits the local industry.

Led by the Kenya Tourist Board (KTB), strategists are deepening involvement with emerging markets such as the eastern countries to cushion itself.

The Eurozone is faced with a debt crisis as a result of the Greek financial situation that has led to the European Union and IMF unveiling a rescue package of close to $1 trillion in May.

The impact of the crisis is being felt on the white sandy shores of Mombasa’s coastline, where dwindling numbers of European visitors have left a gap in earnings.

“There is a high possibility that the traditional source markets will be slow due to what is going on in Europe, but at least we have been moving to new markets,” said Ndegwa Muriithi, the managing director of KTB.

However, the growing crisis threatens gains made so far in terms of recovery efforts.

In 2008, when Kenya was hit by political chaos, tourism earned Sh52 billion, down from Sh65 billion a year earlier, which has been used as the benchmark for success.

While the debt chaos are threatening to affect arrivals, players in the local scene are optimistic and are turning to emerging markets such as Asia.

The shift started in earnest last year, when declining revenues from European visitors, hard hit by the economic crisis, prompted a review of strategies with the sole goal of expanding markets.

Apart from Asia, Kenya has been gunning for African markets.