Earnings from tourism hit a record high of Sh352.54 billion last year driven by a jump in visitor numbers, significantly lifting one of Kenya’s biggest foreign exchange income drivers.
This was a growth of Sh84.45 billion or 32 per cent jump from the earnings of Sh268.08 billion made a year earlier as the sector continued year-on-year recovery from the slump posted four years ago.
Official data from the Tourism Research Institute (TRI) shows that 2.08 million tourists visited the country last year up from 1.54 million in 2022.
Last year’s momentum is, however, likely to be hit by the ongoing countrywide youth-led demonstrations against proposed taxation measures among other grievances.
The demos, for instance, have led to cancellation of the annual Lewa Safari Marathon which was set to be held last weekend.Last year’s earnings are the highest since the country started tracking and making public annual tourism earnings, with the sector recovering from the impact of the Coronavirus pandemic four years ago.
Tourism is one of Kenya’s biggest foreign exchange earners, besides being a key employer with millions of direct and indirect jobs across the hospitality value chain.
Data shows that the period between July and September accounted for about 30 percent of the earnings made last year or Sh104.66 billion.
July to September has traditionally been the peak season for the tourism sector with millions of tourists drawn to the annual spectacle of the wildebeest migration at the famous Maasai Mara game reserve.
But despite the record high revenues, the shilling’s woes against major global currencies last year led to a reduction in expenditure as expressed in dollar terms.
The local unit closed the year at an official exchange rate of 155.47 units to the greenback compared to 123.52 units at the start of last year.
“Average per capita expenditure in US dollars decreased significantly. This suggests that although more people visited in 2023 compared to 2023, they spent less on average during their visits,” TRI says.
“This is partly attributed to the sustained depreciation of the shilling against the major currencies during the year.”
Last year’s growth also highlights the impact of a jump in the number of high-level global and continental meetings that the country hosted.
Some of the major global events that Kenya hosted last year included the second session of the United Nations Habitat Assembly held in Nairobi in June and the inaugural Africa Climate Summit in September.
Tourism was Kenya’s hardest-hit economic sector four years ago in the wake of the restrictions that were imposed to curb spread of the Coronavirus pandemic.
The curbs including domestic and international travel, cut annual earnings from the sector to Sh88.56 billion in 2020 which was a 70 per cent drop from Sh296.2 billion made the previous year.
In January this year, Kenya became a visa-free country meaning all visitors can get the crucial travel document upon arrival, a move that is likely to drive visitor numbers and earnings even higher this year.
