The Travel and Tourism sector contributed Sh1 trillion to Kenya's economy in 2023, the latest report by the World Travel & Tourism Council (WTTC) has revealed.
The 2024 Economic Impact Research (EIR) has termed the performance as a record-breaking year for Travel & Tourism in Kenya'.
Sector jobs grew six percent to reach a record 1.55 million, accounting for one in 13 jobs across the country.
While domestic visitor spending reached more than Sh466 billion last year, almost 15 percent over the previous peak and setting a new record.
Spending by overseas visitors continued to trail the highpoint of 1999 to reach just Sh266 billion.
Julia Simpson, WTTC President & CEO, said; "The recovery of Kenya's travel & tourism sector is a testament to its resilience."
She added that achieving record-breaking growth across economic contribution, jobs, and domestic visitor spending highlights the sector's vital role in the nation's economy.
“Although international visitor spending is currently lagging behind its high point, the future of travel and tourism in Kenya looks strong, with substantial opportunities for growth and development over the next decade."
According to the global tourism body’s latest research, the sector's contribution to Kenya’s economy is forecast to grow nine percent year-on-year to reach almost Sh1.15 trillion.
Jobs supported by the sector are projected to reach more than 1.6 million, representing almost eight percent of jobs in Kenya.
Domestic visitor spending is expected to continue driving the sector to reach Sh521 billion, but spending by travelers from overseas is forecast to remain below the previous high to reach Sh289.5 billion.
With the right government support, WTTC is forecasting that the sector could grow its annual GDP contribution to Sh1.7 trillion by 2034, representing 7.4 percent of Kenya’s economy, and could potentially employ more than 2.2 million people across the country.
The report is coming at a time when the country is facing persistent political protests by the youthful population demanding social and economic change.
This has affected the travel and tourism sector. Early this month, the immediate former cabinet secretary for Tourism Alfred Mutua warned that the anti-government protest would wipe out tourism earnings with imminent job losses in the sector.
“We are lucky that we have not seen a major dent or cancellation as a result of what has been happening. However, if the unsettledness continues, it will hurt the sector leading to a reduction in our earnings, possibility of loss of jobs, and freezing of new opportunities,” Mutua said.
This could derail the country’s growth plans and a 2.2 million international arrivals target for the current financial year.
