New tool to audit economic role of tourism

Kenyans will soon know the contribution of tourism to the country’s wealth through a new tool that will measure the value tourists add to related sectors, their spending patterns and jobs that followed the expenditure.

Government is creating the special tool, known as the Tourism Satellite Account (TSA), to estimate demand and supply of tourism for market intelligence and publicity.

The tool will also be used to establish direct job opportunities in hotels and auxiliary sectors like handicraft, taxi business, fishing and farming.

“Since the accounts distinguish the numbers and expenditure of different tourist markets by origin, the yield contribution measures can be developed per tourist and by source market,” said Tourism Research Institute (TRI), the agency developing the tool.

The State will be able to measure the multiplier effect of tourism expenditure on the whole economy by providing information on who is supplying these goods and how the demand is being met.

 “It is possible to establish the economic importance of tourism for each category of products that are consumed and also for each activity that results in the production of goods and services for the visitors,” TRI said.

Currently, official data only gives figures on activities such as visitor arrivals, hotel bookings and bed occupancy but not an aggregate contribution of tourism to the economy.

Kenya National Bureau of Statistics (KNBS) data shows the number of international visitor arrivals increased by 14 per cent from 1.77 million in 2017 to 2.03 million last year.

This pushed up the sector’s earnings by 31.2 per cent to Sh157.4 billion in 2018.

Source: https://www.businessdailyafrica.com/economy/New-tool-to-audit-economic-role-of-tourism/3946234-5234622-1iwxf9/index.html

Luxury hotel Kempinski appoints new GM

The Popat family-owned five-star luxury hotel Villa Rosa Kempinski has named Roberto Simone as the facility’s new general manager, coming at a time when the hospitality player is targeting to grow its clientele via digital marketing. Speaking in Nairobi on Tuesday, Mr Simone said the hotel will concentrate on building its online presence with a view to attracting young wealthy families to their two facilities in Nairobi and the Maasai Mara National Game Reserve’s Olare Mara Kempinski, a high-end tented camp property.

“Kenya is an attractive market for any serious hospitality chain and Kempinski is keen to enhance its offering to hold its ground against rising competition.

“We shall concentrate on experiential tourism activities that emphasise on the warmth of the Kenyan people, their culture and that includes Kenyan cuisine in our menu,” he said.

The Italian corporate finance specialist, who took over from Frenchman Phillipe Charraudeau, said the hotel had invested heavily in information technology to protect client data via a dedicated global encrypted platform that is in use in all their 80 high-end outlets across the world.

The properties owned by Simba Corp and managed by global hospitality chain Kempinski have hosted an array of prominent international visitors including presidents and billionaire since inception.

Kenya host an array of global hospitality brands with a Sh40 billion investment by China’s Avic International currently underway that will see US hospitality chain JW Mariott occupy a 32-floor block in Westlands, Nairobi.

Accor, the largest hotel chain outside the US, has slated the opening of its first MGallary Hotel Collection in Gigiri, Nairobi, in the first quarter of 2021.

Source: https://www.businessdailyafrica.com/corporate/companies/Luxury-hotel-Kempinski-appoints-new-GM/4003102-5234400-cd2oe6/index.html

Air fares shoot up as high tourist season kicks in

The high season at the Kenya’s popular tourist destinations have seen the cost of air ticket more than double as airlines cash in on high demand.

Coastal towns of Mombasa, Malindi and Ukunda have registered a significant increase in air fares compared with other regions in the country.

For instance, a one-way air ticket to Mombasa on budget airlines Fly 540 and Jambojet costs Sh6,540-Sh14,770, and Sh7,700-Sh9,700 respectively.

Ordinarily in low seasons, passengers would pay a maximum of about Sh5,700 to Mombasa flying most of these airlines.

The Kenya Airways, which has been charging as low as Sh4,465 as at May this year, is now charging between Sh8,257 and Sh13,070 for a one-way ticket to Mombasa.

August is one of the high seasons in most of the tourist destinations in Kenya given that most schools are closed with parents seeking to take their children out on holiday. South Coast appears to have registered high demand for tourists with airlines flying to Ukunda charging exorbitantly on the route.

For instance, a one-way ticket to Ukunda is going for Sh10,700 this week costing Sh15,700 on Jambojet, with airlines recording nearly full booking during the season.

Air tickets on Eldoret route have remained low compared to any other region with no significant change on charges. Jambojet is charging Sh4,700 for a one-way ticket from Nairobi to Eldoret and vice versa.The route has over the years been the cheapest given low demand by passengers travelling to the North Rift town. The domestic air market has seen rising demand in the recent years as more Kenyans opt to fly due to rising incomes and falling air fares with some airlines charging as low as Sh3,000 one way.

To meet the increasing demand, the Kenya Airports Authority has been expanding regional airstrips to allow them accommodate larger aircraft.

Ukunda and Manda airstrips upgrade is expected to boost tourism to Lamu and Kwale counties.

The coastal city routes have always been the most expensive in the country given high demand from both local and international tourists.

Source: https://www.businessdailyafrica.com/corporate/shipping/Air-fares-shoot-up-as-high-tourist-season-kicks-in/4003122-5234520-jolingz/index.html

Safe skies is a joint responsibility, let us all play our part

Every time an incident happens in the aviation industry, whether locally or internationally, it becomes a subject of concern to everybody. Understandably so because of the fatalities that are associated with air incidents.

Over the past eight years, Kenya has recorded slightly above 100 minor and fatal aircraft incidents. This, according to government data, includes records from pilot training flights, commercial passenger flights, cargo flights and private aircraft.

At least 37 of the recorded incidents occurred on the runway during take-off and landing, as a result of faulty landing aircraft gear, runway intrusions or aircraft overshooting the runways. Engine failure contributed to about 22 of the incidents recorded. Aircraft crashes into obstacles contributed to 50 percent of the fatalities.

Despite this, Air transport is still by far the safest mode of transport. The 2018 International Air Transport Association (IATA) safety performance data showed that there was one accident for every 740,000 flights globally, which was a slight improvement from the previous five-year period 2013-2017.

Kenya has seen an upward trajectory in its air safety record in the last ten years. The country now ranks 7th in Africa and 67 out of 185 states globally, in air safety. The country’s safety score stands at 78 percent.

This rating by the International Civil Aviation Organisation (ICAO) shows that there is a deliberate effort by the sector to improve safety standards. ICAO categorises a country’s air safety based on civil aviation organisation, aviation legislation, air navigation services, aircraft operations, personnel licensing and training, aircraft airworthiness and air crash investigations.

In the last few years, we have seen a rise in low-cost carriers here in Kenya, making air travel more affordable. For instance, with Jambojet, we have flown over 3 million passengers over the last five years, equivalent to the total population in Nairobi. At least 30 percent of these were first time flyers. The important question to ask is how we as an industry should enhance safety and reliability.

First we are regulated. Each of the industry players should adhere to the set regulations, and this would work towards safer skies, and a better operating environment. Jambojet like every other airline has elaborate operating manuals that we strictly adhere to.

Secondly we have to be transparent and open to scrutiny. For example we at Jambojet have opened up our operations to scrutiny by the regulator and our partners Kenya Airways, KLM and Air France. Recently we received the IATA Operational Safety Audit registration, becoming the second airline in Kenya after Kenya Airways to receive this certification and the only low cost carrier to be certified.

Finally, we are safe as we want to be. It does not matter how much the regulators try to regulate us. It boils down to individual responsibility by airlines. As operators, we must be responsible and adhere to the set guidelines.

We must also have continuous training for all staff on safety and security. This not only raises the awareness but also ensures that we are prepared at any.

The writer is managing director & CEO, Jambojet. Source: https://www.businessdailyafrica.com/analysis/columnists/Safe-skies-is-a-joint-responsibility/4259356-5235792-ijtr3e/index.html

NLC to carry out third land valuation for Homa Bay airstrip expansion

The National Land Commission (NLC) has directed the Kenya Airports Authority (KAA) to submit a new list of parcels of land to be acquired for upgrade of Kabunde Airstrip in Homa Bay.

This will be the third land valuation exercise the NLC is undertaking for upgrade of the airstrip aimed at boosting domestic air travel.

The cost of compulsory land acquisition for the second valuation carried in 2016 was Sh106.6 million, a 60.1 percent increase from the Sh42.4 million arrived at on the first valuation in 2013.

On May 20, the KAA surrendered titles it had collected from affected landowners after they threatened to sue following delays in their compensation.

Transport Secretary James Macharia told the National Assembly Transport committee that the KAA wrote to the NLC in June requesting appointment of a valuer for the affected parcels.

 “Further to a meeting held with the acting Head of Valuation, and the NLC on July 9 2019, the Authority (KAA) is required to submit the following documents prior to commencement of the valuation exercise,” said Mr Macharia.

Under the instructions, the KAA is required to submit list of parcels categorised as either whole or partial acquisition.

The KAA is also expected to provide the registry map indicating the current acreage of the airstrip together with the area to be acquired. The KAA intends to extend the existing length runway from 1.2km to 1.7km to accommodate large aircraft.

The Authority commenced the process of acquisition of the estimated 141 acres of land in Kabunde in 2012.

The process has however not concluded following disputes on figures arrived at by the government valuers as was indicated on the valuation schedule.

There has also been delays in the succession process for issuance of Grant of Letters of Administration for deceased landowners.

Another hitch has been a dispute between the KAA and the county government on payment of outstanding sums arising from the construction of the terminal building.

In April, the affected land owners took to the streets demanding that the KAA settles their dues before construction works start on the Kabunde Airstrip.

Source: https://www.businessdailyafrica.com/corporate/shipping/4003122-5234518-rc5v8lz/index.html

Kenya Airways receives accolades from Nigerian Civil Aviation Authority for exemplary services

Kenya Airways has been commended for its exemplary performance in Nigeria during the past six months. The Nigerian Civil Aviation Authority Director for Consumer Protection Mr. Adamu Abdullahi said that the Authority was very pleased with the performance that Kenya’s national carrier had recorded in the period up to June 2019.

“Kenya Airways has generally been doing very well in this market. Out of the 244 flights it operated into this country for the past half year, only 68 had been delayed, 2 cancelled and 1 had a ramp return. Throughout that period, we only had one complain registered against KQ,” he said.

Mr. Abdullahi made this revelation at the Authority’s offices during a courtesy meeting with officials from the Kenya Association of Travel Agents (KATA) and those of National Association of Nigerian Travel Agents (NANTA). He urged the airline not to rest on its laurels and should continue to set the standards for the other African carriers, who he observed that were not doing that well. 

Present at the meeting was the Director General of the Nigerian Civil Aviation Authority (NCAA) Captain Muhtar Usman, Director of Air Transport Regulation Rtd. Captain Edem Oyo-Ita, President of NANTA Bankole Bernard, KATA Treasurer Dr. Joseph Kithitu, KATA CEO Nicanor Sabula among other high ranking NANTA officials.

Earlier on, KATA officials who are on an official visit to Nigeria held a meeting with the Kenya Airways Country Manager Mr. Hafeez Balogun at their offices in Ikeja, Lagos. The meeting focused on how Kenya Airways as the bridge that connects East Africa and West Africa could support the partnership and collaboration between Kenya Travel Agents and their counterparts in Nigeria through their respective Associations. Both Associations lauded the commitment and support they had received from Kenya Airways in their home markets.

KATA co-host training in a bid to grow cruise tourism

Cruise holidays are increasingly becoming popular in Kenya. Over the years cruise holiday bookings have gone up locally. In the period 2017-2018, Kenya recorded 4,747 tourists cruising in from the United Kingdom, United States of America and Canada. 6 ships docked at the Mombasa dock between October 2017 and March 2018.

It is for this reason that the Kenya Association of Travel Agents (KATA) in collaboration with Holiday Bazaar conducted training on selling cruise holidays for her members (travel agents).

In attendance were key sales and marketing personnel from Crystal Cruises, Royal Caribbean Cruises and Celebrity Cruises.

Sessions focused on understanding cruising, advantage of selling a cruise, product knowledge on ships, knowledge on personalized cruises among others.

Speaking during the workshop Mr. Nicanor Sabula CEO at KATA opined that players in the industry do not engage is cruise selling because of the perceived technicality of booking cruise holidays. He however noted that there are clients who are curious and seek out information on cruise tourism.

Ms Helen Beck of Crystal Cruises disputed a general perception that claims that cruise lines contribute highly to pollution. “Every cruise line has a very strong sustainable environmental program, which includes a water filtration system on board, garbage separation just to mention a few.” She further said.

Other benefits of cruise ship tourism according to Ms. Thaybz Khan from Royal Caribbean Cruises include value for money because in a cruise ship accommodation, meals and entertainment activities for the whole family are guaranteed.

“In a cruise trip, a traveller gets accommodation, dining and entertainment activities for the whole family,” she said.

 She added that cruise ship tourism, being a multi-generational type of holiday, accords each traveller an unforgettable experience regardless of age.  

Ms Khan further said that cruising allows one to see more than one destination with the convenience of one vessel. This reduces the challenge of unpacking and packing when you are doing more than one destination.

Cruising, she added, offers a safe and secure environment where children are kept busy and entertained while they engage in other recreational activities that include swimming.

With a budget and travel details, Ms Khan stated, a cruise holiday is easy to book. Some key destinations for the cruising market include Europe, the Mediterranean, Dubai, the Caribbean, Barcelona and a rising trend around the Indian Ocean to islands like Seychelles, Zanzibar and Mauritius.

“We are seeing a rise in visits to exotic islands along the Indian Ocean like Seychelles, Mauritius, Zanzibar and Lamu. These sites are especially attractive to travellers from other continents who would normally never visit this part of the world. They now get to see it in one go,” cruise tourism expert Ms. Nishma Shah of Holiday Bazaar reiterated.

Kenya is constructing a Ksh 350 million cruise terminal at the port of Mombasa that is set to be completed in November. This is expected to increase cruise ship tourism as more of them will be received at the port. Kenya is the second major African destination for cruise ships after Egypt.

How Low-Cost Carriers have demystified air travel in Kenya

Air travel was considered a preserve for the rich but since the launch of the low-cost carriers (LCC) in the country this notion has changed. Low cost carriers control an estimated 25% of the global aviation market according to the International Air Transport Association (IATA).

The rise of low cost carriers in Kenya has revolutionised travel, brought affordable air transport within economic reach of a large part of the Kenya population and the market for air travel has massively expanded. This is largely because these LCCs operate a model that features low fares, fewer in-flight frills, and an online booking all which keep costs lower than the traditional airlines.

According to a World Bank Group book, “Ready for Takeoff?” the LCC model could help catalyse air transport in the world’s less developed countries especially in Sub-Saharan Africa.

A number of low cost domestic operators of varying sizes fly within Kenya, destinations are mostly around the coast and the popular national parks where a lot of tourists like to visit. This has seen an increased number of people move away from bus stops and now prefer to use low cost carriers to move to their favourite destinations. Examples of these LCCs in the country include Jambojet, Silverstone Air, Skyward Express and Fly 540 aviation.

Jambojet, a subsidiary of Kenya Airways began operations in April of 2014 and by 2019 it had flown over 3 million passengers with more than a million being first time fliers.  Silverstone air began its operations in 2017 and offers flights from Wilson Airport in Nairobi which is its main operation base.

Studies show that LCCs not only boost the aviation industry but also have broad positive effects on employment, gross domestic product (GDP), tourism, productivity and trade.

The role of LCC’s in the growth of air travel in Kenya is one of the topics that will be discussed in-depth during the 2019 KATA convention to be held at Enashipai Spa and Resort on the 27th  and 28th of September.

Industry captains will get a chance to discuss and debate trends, patterns and drivers of local air travel and why low-cost carriers hold the future for growth of the industry.

Government, Kenya Airways and KAA partner to fight ivory trade.

The fight against ivory trade picked up momentum after Kenya joined 32 other countries calling for the total ban on the trade.

The 32 countries that include Nigeria, Chad, Rwanda, Ethiopia and Uganda are calling for the listing of the African Elephant from Appendix 11 to Appendix 1 that advocates for the total ban on ivory trade through a campaign dubbed the Ivory Trade is a rip off.

The campaign that is a partnership between the Government, Kenya Airways and Kenya Airports Authority was officially launched on July 31, 2019 by Kenya’s First Lady Margaret Kenyatta and activated on August 1, 2019 by the Cabinet Secretary for Tourism and Wildlife Najib Balala.

Speaking during the activation, Mr. Balala urged industry players in the government and private sector to collectively fight against wildlife trafficking.

“This war against wildlife trafficking cannot be fought alone, we call upon all the relevant agencies, in government, private sectors and other communities to support this noble cause.” He said.

The campaign, he further said, hopes to sensitise the public and raise awareness on wildlife trade and trafficking.

The team pledged to each play their part in ensuring the success of the campaign and bringing an end to the ivory trade.

Kenya Airways CEO Sebastian Mikosz said that during the campaign, the national carrier will produce branded boarding passes with codes which once scanned will direct customers to Ministry of Tourism’s website where customers using the airline and its partners can get all information to support wildlife protection.

KAA Chairman Mr. Isaac Awuondo stated that KAA would not relent on the illegal ivory trade adding that  KAA was the first Airport in Africa to sign the United Buckingham Palace Declaration – an international initiative – that commits players in international transport supply chain, mainly airports, airlines, logistics and shipping companies, to collaborate in the fight against the wildlife trafficking.

On their part, KWS has enhanced surveillance in all entry and exit points. KWS will also run an exhibition in August to sensitise the travelling public on illegal wildlife trafficking.

Kenya has been at the forefront for years in the fight to curb the scourge. Heavy jail terms and penalties for people found guilty of the crime has acted as a deterrent. In July 1989, retired president Daniel Arap Moi ignited a pile of 12 tonnes of elephant tusks and helped change global policy on ivory exports.

Shortly after, the trade was banned under the Convention on International Trade in Endangered Species. This recent move in this fight is the biggest one as it incorporates some big names on the travel and tourism sector and other countries as well.

Air travellers in Kenya now have platform to lodge complaints against airlines

Air travellers who have been inconvenienced by airlines can now lodge their complaints with the Kenya Civil Aviation Authority (KCAA).

KCAA launched a platform to address the complaints by air travellers who experience lost luggage, overbookings flight delays and cancellations and fail to get any resolution from the airlines.

KCAA Director General Capt. Gilbert Kibe said that as the industry regulator, the authority will pursue unresolved complaints raised by air travellers.

“In the unfortunate event that passengers suffer considerable delays, overbookings, luggage loss or flight cancellations, we want the consumers to be rest assured that we have in place a system for redress that ensures compliance with the laid down code of practice, ensuring that the quality and value of services provided meet consumer expectations,” he said.

The aviation regulator requires that the passengers are informed of any planned cancellations or long-term delays anticipated at least 12 hours before the scheduled flight by the airlines and ground handling agents.

Mr Kibe avers that the airlines should also have a means of communication for emergencies and provide alternative solutions and compensation in cases of denied boarding, flight delays or cancellations and lost, damaged or delayed luggage.

“We, therefore intend to ensure consumers are fully aware of their rights from the point of the ticket purchase in order to ensure that all aviation consumers are accorded the best services and value from the service providers within the aviation industry,” he pointed out.

The aviation consumer protection rules, he further said, demand that airlines provide documents on insurance, compensation and complaint assistance on request from the travellers.

Starting June 1, 2019, the International Air Transport Association (IATA) mandated all travel agencies to provide passenger contact information when booking air tickets.

As part of IATA Resolution 830d, travel agents booking air tickets through IATA’s Passenger Agency Program “must actively ask each passenger whether they wish to have their contact details (mobile number and/or email) provided to airlines participating in the itinerary.” According to IATA, the rule is being implemented in order to help contact the passenger “in an operational disruption” and so that airlines are “able to advise passengers of irregular flight operations and disruptions.

By Kenya Association of Travel Agents