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Why insurance is key to success of tourism and hospitality industries

BDMedicalTourism

Hospitality and tour operators' liability insurance not only safeguards the business but also instils confidence in tourists, assuring them of their well-being.

Tourism performance in Kenya has grown significantly in the last 10 years. In 2015, international visitor arrivals were 1,459,500 and international tourism receipts, were Sh84.6 billion. By 2019 the arrivals rose to 2,048,834 and receipts, Sh163. 6 Billion.

Tourism is a key driver of Kenya’s economy, with foreign income ranking close to tea, horticulture, coffee, and diaspora remittances. Prior to Covid -19, the sector contributed nearly 10 percent of the country’s GDP. In 2020, the industry’s performance was expected to continue growing with 7.5 percent increase in international visits. Like everybody else we faced a slump during the pandemic but bounced back post-Covid.

As we pursue economic transformation, tourism provides what economists would call quick wins or early harvest. The tourism ecosystem is already established and Kenya has a competitive advantage with diverse assets. The industry is poised to provide employment, and foreign exchange, all combined to generate inclusive growth and reduced cost of living quicker than many other sectors.

We must, however, apply modern risk management tools to safeguard the tourism industry. In other words, as the tourism and hospitality industry in Kenya continues to thrive and attract visitors from all over the world, having the right and specialised insurance coverage can provide peace of mind and protect the long-term viability of your business in the industry, further. It is crucial for businesses within this sector to implement best practices in insurance. 

One of the key areas that businesses in the tourism industry should focus on is hospitality and tour operators' liability insurance.

Human error and negligent acts can lead to injuries or loss of property. This type of coverage is essential as it protects businesses from potential claims filed by guests or third parties for accidental injuries, property damage, or any other harm that may occur during their visit or interaction with the business.

Hospitality and tour operators' liability insurance not only safeguards the business but also instils confidence in tourists, assuring them of their well-being.

Also essential for the success of tourism are travel, property, and business interruption insurance.

The writer is Senior Consultant Private Sector- Liaison Group.