Sh3.4bn budget cut dims tourism revival hopes

Treasury has cut tourism marketing funds by Sh3.4 billion in what could dim hopes of a quick recovery of the sector battling effects of travel alerts.

The Treasury increased the tourism promotion budget six-fold to Sh7.2 billion in the budget announced in June and came after earnings fell 7.3 per cent last year, weakened by a slump in arrivals following a spate of terrorist attacks.

A supplementary budget tabled in Parliament Wednesday indicated that the promotion expenditure will be cut by Sh3.38 billion.

The reduction is part of the review of the budget that will see development expenditure slashed by Sh49.1 billion while expanding the recurrent budget by Sh8.1 billion.

The reduction in the country’s spending follows poor revenue collection that has seen the taxman target fall by Sh47.6 billion in the six months to December. 

Kenya had hoped to launch a marketing offensive in Western capitals from August to woo tourists back to the palm-fringed beaches and sprawling game parks.

READ: Nairobi, Mombasa woo tourists at global exhibition in Germany

The marketing budget was expected to calm the nerves of hoteliers who blame the government for doing little to revive the sector that employs about 150,000 people.

A delayed turnaround means hoteliers will continue to face hard times that have seen them shed jobs and cut pay.

The number of international visitors dropped to 1.3 million from 1.5 million in 2013.

The government blames terror attacks, travel advisories and the spread of Ebola in West African nations as contributors to the dwindling fortunes.

Following the attacks, Britain, US, France and Australia last May issued travel warnings to their nationals, which saw a decline in tourist arrivals and led to the closure of more than 40 hotels at the Coast due to low bed occupancy.