Travel & Tourism in Africa: A Sector with Untapped Potential

The Travel & Tourism sector in Africa is poised for significant growth in the coming years, with the potential to contribute an additional US$168 billion to the continent’s economy over the next decade. This is according to a new report from the World Travel & Tourism Council (WTTC) and VFS Global, which highlights the sector’s potential to create jobs, drive economic development, and promote cross-cultural collaboration.

The report, titled “Unlocking Opportunities for Travel & Tourism Growth in Africa,” outlines three key policy areas that could unlock annualized growth of 6.5% for the sector, reaching a contribution of more than US$350 billion to the regional economy. These policy areas include:

Improving air infrastructure: Africa needs better air connectivity within the continent to make it easier for travelers to reach its diverse destinations.

Visa facilitation: Simplifying visa processes will encourage more travelers to visit Africa by reducing the time and hassle involved in obtaining a visa.

Tourism marketing: Africa needs to invest in marketing campaigns to promote its wealth of destinations and attract more visitors from around the world.

The report also highlights the opportunities for the sector to adopt sustainable practices, such as reducing its carbon footprint through low-carbon energy adoption and enhancing water efficiency. These practices will not only help to protect the environment but also make the sector more attractive to environmentally conscious travelers.

Speaking at the launch of the report in Kigali, Rwanda, WTTC President & CEO Julia Simpson said: “Africa’s Travel & Tourism sector has witnessed an extraordinary transformation. In just two decades, it has more than doubled in value, significantly contributing to the continent’s economy.

Growth potential for Travel & Tourism in Africa is massive. It has already more than doubled since 2000, and with the right policies could unlock an additional US$168 billion in the next decade.

Africa needs simplified visa processes, better air connectivity within the continent, and marketing campaigns to highlight the wealth of destinations in this breathtaking continent.

Zubin Karkaria, Founder & CEO of VFS Global, said: “We are excited to partner with WTTC to uncover the extensive opportunities that Travel & Tourism offers in Africa.

Having established our presence in Africa since 2005 we are today the trusted partner of 38 governments who we serve across 55 cities in 35 countries in Africa. VFS Global recognises the tremendous potential of Africa and remains deeply committed to supporting the continuing development of travel and tourism to and from the continent.

This report not only highlights the diverse prospects for economic growth, sustainable tourism, and cross-cultural collaboration but also provides valuable insights for governments to formulate policies and offers businesses a well-defined roadmap for expansion in this thriving market.

The report concludes that Africa’s Travel & Tourism sector has the potential to become a major driver of economic growth and job creation in the coming years. With the right policies in place, the sector can help to unlock the continent’s full potential and create a brighter future for its people.

Source:Tourism News Africa.

African countries are more open now than ever before – 10 key milestones

Africa’s openness based on visa-free travel has seen significant improvements in recent years as nations work towards enhancing regional integration and fostering economic and cultural ties. Several initiatives and agreements have been initiated to help facilitate a more integrated society.

While progress is evident, challenges such as security concerns and administrative bottlenecks still impede seamless travel. This has however done little to halt Africa’s success, regardless of the degree of becoming a more open continent.

Africa’s progress with its openness policies was highlighted in the recently published 2023 Africa Visa Openness Report, by the African Development Bank. The report states that “After years of fluctuation, most recently, because of the drastic brakes on mobility imposed to curb the spread of the COVID-19 pandemic, in 2023 Africa’s countries recorded their highest average Africa Visa Openness Index (AVOI) score measured to date.”

The study highlights the positive improvements that have occurred over the last 12 months, and below are some of the most prominent.

10 key milestones listed on the AfDB’s report

  • Citizens of at least one other nation are now granted visa-free entrance into 48 out of 54 countries.
  • Only four countries experienced a reduction in the number of countries that granted visas.
  • 35 countries maintained the same level of access.
  • At least 10 other countries can visit 33 of the 54 nations, without a visa.
  • Citizens of other nations in Africa can now enter 4 African other African states without a visa, up from 3 the year prior.
  • Citizens of at least one other African nation are eligible for a visa upon arrival in 30 nations.
  • Citizens of no fewer than 35 African nations are eligible for a visa upon arrival in 12 countries. “The same 12 countries only require a visa ahead of travel from the citizens of nine African countries.”
  • More than half of the continent still needs to apply for visas in advance of travel to 30 nations.
  • Citizens of at least one other nation on the continent are required by 44 countries to get a visa before arrival.
  • 24 nations make travel easier by providing e-visas.

Source: Business Insider

What’s On African Airlines’ Christmas Lists In 2023?

African airlines made international headlines on several occasions this year with big aircraft orders, brand transformations, and many African firsts. Undoubtedly, the continent has a lot of potential to have a sustainable and robust aviation sector, but an equal measure of challenges, which will most likely persist for years to come.

However, there are numerous issues that airline operators hope can be addressed in the short term to create a more manageable operating environment. Following industry trends and conversations with various stakeholders, we can predict what African airlines will have on their Christmas wishlist this year. In the last quarter, we have seen many carriers launching exciting festive campaigns, surprising customers with gifts, and ultimately spreading the festive cheer. But what do the airlines want as we head into the new year?

Liberalization of the African skies

Liberalization of the African skies is possible through the full implementation of the Single African Air Transport Market (SAATM). This concept has been widely discussed in general conversations, university classes, and almost every major aviation conference. Various airlines and stakeholders will be hoping for less talk and more action regarding the implementation of SAATM.

Open skies in Africa will significantly enhance intra-continental travel, allowing new entrants and existing airlines to access new markets, improve their schedules, offer new routes, and ultimately make air travel more accessible. Beyond just aviation, many sectors stand to benefit from liberalization, as seen in other markets like Europe and North America. It will stimulate economic growth – raising the GDP of many African countries and improving the welfare of general citizens, in line with the African Union Agenda 2063.

Airlines will be able to fly more frequently, and if countries grant each other more fifth freedom rights, they will be able to transport more passengers between various city pairs and make several routes more profitable. With the African Continental Free Trade Area (AfCFTA), trade opportunities will increase, allowing African airlines to carry more people and goods between countries. While full liberalization will not happen immediately, African airlines will keep it on the list.

Stronger partnerships

Many African airlines have understood the importance of partnerships and continue to explore more opportunities to pool their resources and knowledge to stimulate growth. This year, we saw some landmark agreements between African and non-African carriers, like Airlink’s interline partnership with Etihad in March, Kenya Airways’ interline agreement with Emirates in June, Lufthansa’s codeshare agreement with South African Airways in August.

We’ve also seen African carriers coming together for codeshares and technical support, like Royal Air Maroc and Air Senegal recently, as well as Air Algerie and Mauritania Airlines in May, allowing for cooperation in maintenance, training, catering, sales, and product supply. Over the years, Ethiopian Airlines has partnered with the Togolese, Zambian, and Malawian governments to set up national carriers in the respective countries.

While some African carriers prefer to remain isolated and attempt to grow independently, others wish to form stronger partnerships in 2024. Kenya Airways and SAA have been in talks to form a pan-African airline group to scale up and become more competitive internationally. Kenya Airways CEO Alan Kilavuka has been advocating for consolidation among African airlines to ensure growth. Speaking to Richard Quest on CNN, Kilavuka said,

“What I have been championing since taking this role is consolidation in the African airline industry. We need to come together as African airlines to develop more scale and grow from forty-odd aircraft to double or triple that number. Africa is a large continent, so together with reducing costs and consolidation of the airline industry, those two things will definitely help to alleviate the problem and make us more viable.”

Stronger partnerships between African airlines and private entities will also be at the top of the wishlist for some carriers. The South African government has been negotiating a semi-privatization deal for the SAA, which will see a private equity partner, Takatso Consortium, acquire a 51% stake in the national carrier. The deal was conditionally approved by the Competition Tribunal in July, and the Public Enterprises Minister expects it to go through by the end of the year or early next year. The latter is now the more sensible option.

Better governance

This Christmas, African airlines wish for better governance as they have been severely impacted by poor political and economic decisions. They hope for fewer conflicts, more robust economies, the release of blocked funds, and more considerate decision-making at a governmental level regarding aviation.

Fewer conflicts and airspace closures

Firstly, political instability cost airlines a lot this year. We saw two major airspace closures, coups, unexpected curfews, outbreaks of violence, and other undesirable incidents that affected airline operations. This started with the closure of Sudanese airspace in April, followed by Niger’s airspace closure in August, and a temporary closure of Gabon’s airspace a few weeks later. In August as well, violence in Tripoli forced a temporary closure of Mitiga Airport.

These incidents caused significant losses for airlines as they had to remove aircraft from certain airports, suspend services to several destinations, and re-route flights to avoid the no-fly zones. As such, African airlines would appreciate a much more stable political environment in 2024.

More robust economies

Many airlines in Africa have been operating for years without making a profit, with those not in a position to rely on government bailouts effectively shutting down. One of the most pressing challenges is the continued depreciation of African economies. Globally, high inflation was among the major economic challenges in 2022.

While the peak period has passed, inflation remains significantly high in many African countries, resulting in high costs for airlines and consumers. In big economies like Kenya, Nigeria, and South Africa, the local currency has significantly depreciated against the US Dollar over the last year, weighing down airlines operating in these regions. Speaking in an interview with Simple Flying earlier this month, CEO of South Africa’s LIFT, Jonathan Ayache, said,

“For South Africa, specifically, we’re operating in a market where we generate our revenue in Rands (ZAR), but our key costs are driven by the dollar (US$). So, it’s been really challenging this past year because the Rand has weakened significantly.”

Lower costs and reduced taxes

While African airlines can benefit from liberalization, partnerships, and political stability, reduction of costs will be among the top on this year’s wishlist. The cost of operating an airline in Africa is much higher than in any other region. In 2023, the price of jet fuel in Africa, as well as airport taxes and user charges, remained significantly higher than the industry average.

Releasing of blocked funds

Another major challenge that continues to slow down the development of the African aviation industry is the issue of blocked funds. In a media briefing this month, the International Air Transport Association (IATA) stated that about $1.9 billion remains trapped in Africa, accounting for about 75% of funds blocked globally.

Nigeria continues to top the list with over $792 million as of October 2023. Many airlines, both African and non-African, hope to repatriate some funds from Nigeria and other African countries next year. More specifically, Nigerian carriers like Air Peace wish to receive over $15 million owed to them by the government.

Better infrastructure and MRO facilities

The lack of sufficient air transport infrastructure has also hindered the growth of Africa’s aviation industry. As of 2021, several African countries ranked well below the 100 mark in the global air transport infrastructure ranking, especially in the western and central parts of the continent. While improvements have been made post-pandemic, African airlines will surely hope for faster progress in 2024.

Regarding expenses, African carriers also face excessively high maintenance costs. Additionally, the lack of adequate Maintenance, Repair, and Overhaul (MRO) facilities in many countries forces airlines to keep aircraft out of service for more extended periods as equipment is sent overseas. In September, Air Peace reported that 15 aircraft were stuck abroad due to Nigeria’s lack of adequate maintenance facilities.

Full return to pre-pandemic levels

One of the last crucial items on African airlines’ Christmas lists will be a full return to pre-pandemic levels. While passenger traffic has exceeded 2019 levels in many parts of the world and even other parts of Africa, several countries are still recovering. Many of the challenges still faced today have affected the restoration of traffic to pre-pandemic levels. While passenger traffic in other regions like Northern and Eastern Africa has exceeded pre-pandemic levels, Southern Africa continues to lag behind, with full recovery expected in 2024/25.

As mentioned earlier, many impediments faced by African carriers will most likely not go away immediately. However, stakeholders will continue addressing these issues to achieve the ultimate goal of maximizing the potential of air transport and ensuring a sustainable operating environment.

Source: Simple Flying.

Africa shines in the 2023 Telegraph Travel Awards

Nearly 30,000 readers who took part in a comprehensive survey conducted via The Telegraph’s global travel news platform have placed South Africa ahead of all other global destinations for 2023.

The southern African country snatched the coveted title of most-favored global country destination to dethrone long-standing favorite, New Zealand.

Participants rated the country’s remarkable accessibility from the UK and the US as a significant plus for the country, praising South Africa’s accessibility thanks to direct flights to both Johannesburg and Cape Town. Also important to travelers from Europe was minimal jet lag thanks to near-identical time zones.
Besides accessibility, voters cited a plethora of features, including the breathtaking landscapes of the Drakensberg /uKhahlamba mountain range and Motlatse Canyon, the captivating wildlife of Kruger National Park and the nation’s vibrant cultural tapestry.

The allure of African travel extended beyond South Africa, with Botswana and Kenya also making it into the top 10 list.

Despite requiring a change of flights for travelers, Botswana’s safari convenience and the mesmerizing Okavango Delta garnered it a loyal following.

Meanwhile, Kenya, a renowned safari hub, showcased its resilience as a preferred travel destination by consistently making the top 10 list.

Beyond the favorite country category, Cape Town, fondly known as the “Mother City”, stood tall as the world’s best city for travel.

Readers were drawn to its year-round favorable weather, its iconic Table Mountain and the city’s luxurious hospitality sector nestled among pristine beaches.

The awards and recognition come at a time when South Africa’s tourism and travel market is witnessing a major rebound after the Covid-19 pandemic and an increase in overall tourism numbers.

Kgomotso Ramothea, a communications and marketing lead for South African Tourism in charge of the UK and Ireland, said the accolades are a testament to the remarkable experiences South Africa offers its visitors.

“They underscore the unwavering dedication of our vibrant tourism industry,” she said.

Tourism data from the South African Department of Tourism reveals 303,848 arrivals from the UK and Ireland in 2022.

Arrivals from the two countries in the first quarter of 2023, January to May, increased by more than 50 per cent compared to the same period last year.

Source: The Star

Kenya Tourism Board Targets African American Tourists.

The Kenya Tourism Board (KTB) is actively reaching out to African American travelers, aiming to provide them with immersive cultural experiences and adventure.

The Ag CEO of KTB, John Chirchir, highlighted Kenya’s unique appeal as a destination that combines cultural richness with biodiversity.

Chirchir expressed his enthusiasm about including the African American segment which represents 13% of the US population and ranks as Kenya’s third-best performing tourism market.

According to Chirchir, KTB’s goal is to “capture their interest, encouraging them to establish not only a connection with their African heritage but also with Kenya’s prominent role in global conservation efforts.”

During a recent familiarization tour, travel advisors and influencers explored Nairobi, the Maasai Mara, and the Kenyan coast, gaining destination knowledge, and providing valuable marketing insights.

Personalities like Gbenga Akinnagbe, Angelique Miles, Bevy Smith, and Iesha Reed participated in the week-long trip, leveraging their influence to reshape perceptions about Kenya and Africa.

Chirchir emphasized the importance of using influencers to present a diverse and rich image of Kenya, countering stereotypes perpetuated by foreign media.

According to KTB, Kenya aims to showcase its cultural wealth to a broader audience by using cultural festivals aligning with the preferences of culturally inclined global travelers.

Source: Citizen Digital

Travel & Tourism to Kenya: World Tourism Network Speaks Out

Beginning January 1, 2024, travelers entering Kenya won’t require a visa, according to a Tuesday announcement from Kenya’s President William Ruto.

Kenya Visa Policy to become a new global trend.

With this move Kenya is taking a lead in the world, what the World Tourism Network sees as an emerging trend that should be advocated and supported by the global travel and tourism industry.

According to Ruto, Kenyan authorities have created a digital platform that guarantees every guest will obtain an electronic travel permit before arriving, obviating the necessity for a visa application.

“It will no longer be required for anyone, anywhere in the world, to bear the burden of obtaining a visa to visit Kenya,” he declared during a celebration honoring the nation’s 60th anniversary of breaking away from the United Kingdom.

Travel without Visa

Ruto has made a strong case for travel without a visa. He declared in late October that Kenya, the fourth nation on the continent, will provide visa-free entrance to all citizens of Africa by the end of 2023.

Following Minister of Tourism and Wildlife Alfred Mutua’s announcement in November at the World Travel & Tourism Council Global Summit in Rwanda that Kenya was considering doing away with visa requirements for travelers from outside of Africa, the country has decided to grant all visitors visa-free travel entrance.

Kenya’s Secretary of Tourism

Hon. Alfred Mutua may soon become a tourism hero like Kenya’s former Minister Najib Balala when he was honored as a hero by WTN at the World Travel Market London in 2021.

Kenya Secretary of Tourism Alfred Mutua had a successful career in the media and public relations. He is best known for his role as a television news anchor and journalist, working for Kenya Television Network (KTN) and later Citizen TV. His media career helped him gain recognition and popularity before he ventured into politics.

For many years a fellow African Country, Seychelles had kept up the concept of visa-free entry for all. Former minister St. Ange always said his country was welcoming to everyone and was an enemy with no country.

Kenya is setting a positive global example able to welcome visitors without putting stumbling blocks up. This will be an economic opportunity only a few countries in the world had so far.

World Tourism Network comments

World Tourism Network chairman Juergen Steinmetz said: “Congratulations Kenya for this move. It’s an eye-opener not only for Kenya but for every country to take a good look at.

In a digital world of AI, countries should be able to balance security concerns with fast electronic research data, to make tourism more accessible to anyone.

Apply for a Kenya e-visa.

The procedure of application has now been modified and simplified to a user-friendly mode that takes three simple steps. The E-Visa portal now has its dedicated website: www.evisa.go.ke. Visa approval is being done real time.

Source: Eturbo News

Travel Agents Welcome Govt’s Visa-Free Requirement for Visitors.

NAIROBI, Kenya, Dec 14 – Travel agents have welcomed a decision by the government to scrap visa requirements for all international visitors effective January 1, 2023.

Through their umbrella body, the Kenya Association of Travel Agents (KATA), they said that the move reinforces the state’s commitment to strengthening ties with global partners.

President William Ruto announced during the Jamhuri holiday on Tuesday that the country will be opening its doors to all visitors.

The removal of visa requirements aligns with the African Union’s (AU’s) call to member states to eliminate barriers to international business, promote cultural exchange, and build communal relationships to speed up the integration process.

It further reinforces Kenya’s commitment to the realisation of the African Continental Free Trade Area (AfCFTA), which aims to enhance the continent’s economic integration, facilitate the movement of people, and promote seamless trade and business activities.

KATA is now urging other AU member states to emulate Kenya’s example and eliminate barriers to promote intra-African travel and trade.

“While expressing appreciation for the President’s announcement, KATA urges government agencies to move with speed to issue proper guidelines on how the proposed Electronic Travel Authorization will be implemented,” KATA said in a statement.

“Considering that we are already in the peak holiday season, KATA would like to see a seamless process that does not inconvenience travelers who have already made their travel arrangements.”

Source: Capital Fm

Kenya is set to be a visa-free country at the beginning of 2024.

Speaking on Tuesday during the Jamhuri Day celebrations at Uhuru Gardens, President William Ruto said that the move is in line with Kenya Kwanza’s promise to abolish the requirement of travelers applying for a visa to visit Kenya.

To implement the new policy, Ruto said they had developed a new digital platform that will ensure all travelers to Kenya are identified in advance on an electronic platform.

“All travelers will obtain electronic travel authorization,” Ruto said.

“It is with great pleasure, as President of this extraordinary country to make a historic announcement of the decision of the Government of Kenya beginning January 2024, Kenya will be a visa-free country,” he added.

During the announcement, the Head of State stated that Kenya is humanity’s home, a scientific fact that fills us with pride and underscores our rich heritage.

“To echo the call of the Turkana people to the world: “Tobong’u Lorre!” Kenya has a simple message to humanity: Welcome Home! This is why, the government has abolished the requirement of visas for all our visitors,” Ruto stated.

Source: Standard Media

Kenya Airways Announces Flight Interruptions for Two Weeks Over Spare Parts Challenge.

Passengers travelling this holiday season through Kenyan Airways may have their flights interrupted for about two weeks.

The company announced on Friday that some of its aeroplanes may remain grounded for the period owing to challenges in acquiring aircraft spare parts.

KQ Group Managing Director and CEO Allan Kilavuka in a statement explained that due to the global challenge, the airline would extend grounding time for flights as a safety precaution.

“Our current flight schedule may experience disruptions in the coming weeks mainly due to challenges in the aircraft spare parts global supply chain. These challenges are leading to extended ground time of our aircraft for maintenance,” Kilavuka said.

“Additionally, this may also lead to grounding one or more of our aircraft in line with our commitment to the highest level for safety and reliability of our operations.”

He added: “We anticipate that these circumstances may persist for approximately two weeks, and we want to thank you in advance for your understanding and patience during this time. Your safety and comfort are our top priorities, and we are dedicated to resolving these issues as quickly and efficiently as possible.”

The CEO consequently advised its customers to check for updates on flight schedules on the company website and mobile applications.

“We are committed to providing you with timely information and support to help you navigate these potential challenges,” he stated.

While regretting the inconvenience caused, Kenya Airways reassured its customers that they are working to restore normalcy.

“We understand the impact that schedule changes can have on your travel plans, and we sincerely apologize for any inconvenience this may cause. Please be assured that our team is working tirelessly to minimize these disruptions and to keep you informed every step of the way,” noted KQ.

Source: Citizen Digital

Soaring Skies: The Cost of Air Travel in Kenya Takes Flight

By Bryan Obala

Kenya Association of Travel Agents (KATA)- Media and Communications

The skies over Kenya are witnessing a surge in airfares, prompting concerns among travelers about the escalating costs of flights. As the world grapples with the aftermath of the COVID-19 pandemic, Kenya, like other nations, finds itself in the midst of a travel boom, reflecting the global trend that has seen airlines posting record profits.

Kenyan carrier Kenya Airways (KQ) reported substantial financial gains, attributing them to the renewed interest in travel. However, the enthusiasm is met with a harsh reality for passengers facing airfares between 20% and 30% higher than those in 2019, mirroring the European experience. This increase has also affected passengers flying on local airlines – the cost of flying within the country has risen significantly, impacting travelers financially.

The primary culprit behind this surge is the soaring cost of jet fuel, experiencing a staggering 50% increase, reaching a high of Sh309 per liter. This upward trajectory can be attributed to the doubling of Value Added Tax (VAT) on petroleum products to 16%, dealing a significant blow to the middle class, who often prefer air travel over road alternatives.

Amid disrupted supply chains and increased demand, the aviation industry in Kenya struggles to keep pace. Supply chain snarls have led to delays in aircraft deliveries and maintenance, forcing airlines to cut capacity. Like Europe, airlines in Kenya attribute these supply issues as a significant driver of the escalating prices.

Renegade Air, a prominent domestic airline in Kenya serving routes such as Kisumu, Wajir, and Homabay, anticipates a substantial impact on its ticket prices. The airline predicts an approximate increase of Sh500 for a one-way flight, underscoring the harsh reality faced by both airlines and passengers alike.

Traditionally, airlines meticulously consider various factors in determining ticket prices, including the dollar exchange rate, landing fees, navigation charges, and notably, the price of fuel—arguably the primary component shaping ticket costs. The recent surge in fuel tax, triggered by the increase in VAT, prompts an inevitable adjustment in domestic fares, amplifying the economic burden on travelers.

This surge in airfare costs unfolds against the backdrop of a resurging demand for air travel in Kenya. After the aviation industry nearly evaporated in 2020, the pendulum has swung, with demand reaching unprecedented levels in 2023. Airlines, struggling to keep pace with this newfound enthusiasm for travel, find themselves compelled to adjust prices to match the renewed demand. The industry’s drastic downsizing during the pandemic, running at 20% or less of normal operations, has left it ill-prepared for the current surge.

As the festive season approaches, the confluence of factors adds fuel to the fire of rising airfares. In response to this trend, the government’s intervention becomes pivotal. Building capacity by allowing more airline landing rights and facilitating direct flights to destinations like Mombasa could alleviate congestion at major airports, offering a potential reprieve for travelers. Increasing the frequencies for domestic carriers is another strategic move that could contribute to a slight reduction in airfares.

info@katakenya.org