Travel And Tourism in Kenya
Euromonitor International's Travel And Tourism in Kenya report offers a comprehensive guide to the market at a national level. It looks at travel accommodation, transportation, car rental, tourist attractions and retail travel. It identifies the leading companies and offers strategic analysis of key factors influencing the market, including background information on disposable income, annual leave and holiday taking habits.
Buy online to access strategic market analysis and an interactive statistical database of market size data for travel accommodation, transportation, car rental, travel retail, tourism attractions and health and wellness tourism, tourism inflows and outflows, tourism spending and company and brand shares.
Tables: 95 | Publication date: Feb 2008
Why buy this report
- Get insight into trends in market performance
- Pinpoint growth sectors and identify factors driving change
- Identify market and brand leaders and understand the competitive environment
Product coverage
Car rental; Demand factors; Health & wellness tourism; Tourism flows domestic; Tourism flows inbound; Tourism flows outbound; Tourism receipts and expenditure; Tourist attractions; Transportation; Travel accommodation; Travel retail
Executive summary
Breaking trends with the past
In 2006 the Kenya Tourist Board launched its largest consumer awareness campaign in new and emerging tourist markets in China and Russia. It also made inroads in taming the growing disquiet among American and European tourists who have been deterred by their governments’ travel bans and warnings regarding travel to Kenya, citing terrorism and related security concerns. The eruption of violence, however, following disputed elections in December 2007 may have only heightened those security concerns and could have a chilling effect on travel to and tourism in Kenya. The long-term effects of the violence, though, are still unclear.
The marketing strategy adopted by the Kenya Tourist Board and the Ministry of Tourism targeted growth in new categories while engaging in both internet and largely television advertisement campaigns, which involved developing travel documentaries aired on Chinese television in Chinese, gaining high penetration in this new source market. Following closely on the launch of a Chinese-language Kenya Tourist Board Website, this marketing effort engaged the territory on a broad front. In Eastern European capitals and other markets of Europe there were concerted efforts to develop closer relations with prospective travellers where travel information was given additional prominence, receiving as much attention within Kenyan missions abroad as any trade enquiries. Travel desks have been established in most European and American capitals and the exercise, which was led by high ranking tourism officials, was considered a success in most traditional and new markets.
Low cost carrier makes a debut in Nairobi
The lucrative but strategically difficult category of low cost carriers reached Kenya for the first time in 2006 with the launch of Fly540.com (Fly540 Aviation Ltd), the second of its type on the African continent. While launching the airline in August 2006, Fly540.com’s management admitted that it was heading into an uncertain future given that this was a first for Kenya and the region as a whole.
This new entrant significantly challenged the dominance of Kenya Airways on most routes and fuelled speculation that the launch would lead to a price war among the older carriers. This prediction was borne out by the halving of airfares between Nairobi and the leading local destinations of Mombasa and Kisumu by Kenya Airways during the Christmas 2006 season.
Terrorism threats have to be addressed
Kenya’s tourism industry felt the force of terrorist attacks in 2002, which led to travel warnings being issued on Kenya’s bleak security situation. Matters have not been helped by regular security updates from the USA and other western governments which to a large extent have seen the market reeling in and out of near depression. Kenya has been on the US list of priorities in its insistence that an anti-terrorist law must be enacted to effectively deal with the issue. The law that has been on the table for nearly two years has been a contentious issue with proponents seeing it as a form of discrimination against the Muslim community in Kenya while others in government have supported its enactment on the grounds that without it the tourism industry faces a difficult future.
Against all odds
Alongside several other sectors of the economy, tourism was seen as one of the fastest growing foreign exchange earners for the country. Among the efforts by government to encourage investor confidence was the move by the Ministry of Trade and Industry to reduce requirements by foreign investors to go through a myriad of regulatory and licensing procedures to be able to conduct business in the country. An example of the reduced procedures was the bundling of certain local authority and central government tariffs into a single tariff which thus reduces the time taken to acquire these licenses to as little as 30 days, compared with the three months or so it previously took to acquire a trading license of any kind. These moves greatly helped in improving productivity, which boosted the economy to an unprecedented 6% growth in the year, against that of 5.8% in 2005.
Post-election civil unrest may have lasting effects
The biggest security threat to Kenya’s tourism industry is the post-election violence that began in December 2007 and continues into 2008. At the time of writing, more than 1,000 people have died in clashes throughout the country, and several tour operators have stopped leading travellers to Kenya. As of February 2008 a number of foreign governments—including those of the United States, the United Kingdom, and France—have issued travel warnings advising their citizens against non-essential travel to all or parts of Kenya. Many in Kenya’s tourism industry, which in 2006 was the country’s largest foreign-currency earning sector, are apprehensive. As international mediators work to solve the political impasse that sparked the violence, tour operators and analysts are unsure of the unrest’s ramifications to Kenya’s tourism industry.
Table of contents
TRAVEL AND TOURISM IN KENYA : MARKET INSIGHT
EXECUTIVE SUMMARY
Breaking trends with the past
Low cost carrier makes a debut in Nairobi
Terrorism threats have to be addressed
Against all odds
Post-election civil unrest may have lasting effects
KEY TRENDS AND DEVELOPMENTS
Economic drivers
Legislative environment
Government tourism policy and sustainable tourism
Consumer lifestyles
Low cost carrier development
Emerging niche categories
Internet developments
TERRORISM AND SECURITY
LEAVE ENTITLEMENT
CONSUMER DEMOGRAPHICS
BALANCE OF PAYMENTS
MARKET INDICATORS
Table 1 Leave Entitlement: Volume 2005/2006
Table 2 Holiday Demographic Trends 2001-2006
Table 3 Holiday Takers by Sex 2001-2006
Table 4 Holiday Takers by Age 2001-2006
Table 5 Length of Domestic Trip: 2001-2006
Table 6 Length of Outbound Departure: 2001-2006
Table 7 Seasonality of Trips 2005/2006
MARKET DATA
Table 8 Balance of Tourism Payments: Value 2001-2006
DEFINITIONS
Tourism Parameters
Travel accommodation
Transportation
Car rental
Travel retail
Tourist attractions
Health and wellness
Internet sales
Internet sales: dynamic packaging
Internet sales: traditional package holiday
Sustainable tourism
Sources
Summary 1 Research Sources
INBOUND TOURISM FLOWS
Headlines
Trends
Country of origin
Inbound demographic profile
Mode of transport
Purpose of visit
Incoming tourist receipts by country
Prospects
Sector Data
Table 9 Arrivals by Country of Origin: 2001-2006
Table 10 Arrivals by Purpose of Visit: 2001-2006
Table 11 Leisure Arrivals by Type 2005-2006
Table 12 Business Arrivals: MICE Penetration 2005-2006
Table 13 Arrivals by Method of Transport: 2001-2006
Table 14 Incoming Tourist Receipts by Country 2001-2006
Table 15 Tourism Expenditure by Sector: Value 2001-2006
Table 16 Method of Payments for Incoming Tourist Receipts: % Breakdown 2005/2006
Table 17 Forecast Arrivals: 2006-2011
Table 18 Forecast Incoming Tourism Receipts: 2006-2011
OUTBOUND TOURISM FLOWS
Headlines
Destinations
Mode of transport
Purpose of visit
Outbound demographic profile
Outgoing tourist Expenditure
Prospects
Sector Data
Table 19 Departures by Destination: 2001-2006
Table 20 Leisure Departures by Type 2005-2006
Table 21 Business Departures: MICE Penetration % Breakdown 2005-2006
Table 22 Departures by Mode of Transport: 2001-2006
Table 23 Departures by Purpose of Visit: 2001-2006
Table 24 Outgoing Tourist Expenditure by Sector: Value 2001-2006
Table 25 Method of Payments for Outgoing Tourism Spending: % Breakdown 2006
Table 26 Forecast Departures: 2006-2011
Table 27 Forecast Outgoing Tourism Expenditure: 2006-2011
DOMESTIC TOURISM FLOWS
Headlines
Trends
Destinations
Mode of transport
Purpose of visit
Domestic tourism receipts
Prospects
Sector Data
Table 28 Domestic Tourist Expenditure: 2001-2006
Table 29 Expenditure per Domestic Trip: 2001-2006
Table 30 Domestic Trips by Destination: 2001-2006
Table 31 Domestic Trips by Purpose of Visit: 2001-2006
Table 32 Method of Payments for Domestic Tourism Spending: % Breakdown 2005/2006
Table 33 Forecast Domestic Tourism: 2006-2011
Table 34 Forecast Domestic Tourist Expenditure: 2006-2011
TRAVEL ACCOMMODATION
Headlines
Trends
Hotels
Competitive landscape
Prospects
Sector Data
Table 35 Travel Accommodation Sales by Sector: Value 2001-2006
Table 36 Travel Accommodation by Sector: Units 2001-2006
Table 37 Regional Hotel Parameters 2006
Table 38 Travel Accommodation Internet Sales by Direct Suppliers and Intermediaries: Internet Transaction Value 2001-2006
Table 39 Hotel National Brand Owners by Key Performance Indicators 2006
Table 40 Hotel National Brand Owners by Market Share 2002-2006
Table 41 Forecast Travel Accommodation Sales by Sector: Value 2006-2011
Table 42 Forecast Travel Accommodation by Sector: Units 2006-2011
Table 43 Forecast Travel Accommodation Internet Sales by Direct Suppliers and Intermediaries: Internet Transaction Value 2006-2011
TRANSPORTATION
Headlines
Trends
Airlines
Private Jets
Competitive landscape
Prospects
Sector data
Table 44 Transportation Sales by Sector: Value 2001-2006
Table 45 Airline Capacity: 2001-2006
Table 46 Airline Utilisation: 2001-2006
Table 47 Airline % Utilisation 2001-2006
Table 48 Airline Volume Sales by Seat Class: % Breakdown: 2001-2006
Table 49 Airline Volume Sales by Distance: % Breakdown: 2001-2006
Table 50 Transportation Internet Sales by Direct Suppliers and Intermediaries: Internet Transaction Value 2001-2006
Table 51 Key Airlines Key Performance Indicators 2006
Table 52 Airline Market Shares 2002-2006
Table 53 Forecast Transportation Sales by Sector: Value 2006-2011
Table 54 Forecast Transportation Internet Sales by Sector: Internet Transaction Value 2006-2011
CAR RENTAL
Headlines
Trends
Competitive landscape
Prospects
Sector Data
Table 55 Car Rental Sales by Sector and Location: Value 2001-2006
Table 56 Structure of Car Rental Market: 2001-2006
Table 57 Average Car Rental Duration by Sector 2004-2006
Table 58 Average Car Rental Duration: % Breakdown 2005/2006
Table 59 Time of Booking: % Breakdown 2005/2006
Table 60 Car Rental Internet Sales by Direct Suppliers and Intermediaries: Internet Transaction Value 2001-2006
Table 61 Key Car Rental Companies’ Key Performance Indicators 2006
Table 62 Car Rental Market Shares 2002-2006
Table 63 Forecast Car Rental Sales by Sector: Value 2006-2011
Table 64 Forecast Car Rental Internet Sales by Sector: Internet Transaction Value 2006-2011
TRAVEL RETAIL
Headlines
Trends
Growth sectors
Competitive landscape
Prospects
Sector Data
Table 65 Travel Retail Outlets by Sector: Units 2001-2006
Table 66 Travel Retail Sales by Product: Value 2001-2006
Table 67 Travel Retail Sales by Destination: % Value Breakdown 2001-2006
Table 68 Travel Retail Internet Sales by Direct Suppliers and Intermediaries: Internet Transaction Value 2001-2006
Table 69 Travel Retail Internet Sales by Sector: Internet Transaction Value 2001-2006
Table 70 Travel Retail Products Market Shares 2002-2006
Table 71 Forecast Travel Retail Outlets by Sector: Units 2006-2011
Table 72 Forecast Travel Retail Sales by Product: Value 2006-2011
Table 73 Forecast Travel Retail Internet Sales by Direct Suppliers and Intermediaries: Internet Transaction Value 2001-2006
Table 74 Key Travel Retail Companies by Number of Outlets 2006
TOURIST ATTRACTIONS
Headlines
Trends
Competitive landscape
Prospects
Sector Data
Table 75 Tourist Attractions by Sector: Value 2001-2006
Table 76 Tourist Attractions by Sector: 2001-2006
Table 77 Tourist Attractions Internet Sales by Direct Suppliers and Intermediaries: Internet Transaction Value 2001-2006
Table 78 Leading Tourist Attractions by Visitors 2001-2006
Table 79 Forecast Tourist Attractions by Sector: Value 2006-2011
Table 80 Forecast Tourist Attractions by Sector: 2006-2011
Table 81 Forecast Tourist Attractions Internet Transaction Value Sales by Sector: Internet Transaction Value 2006-2011
HEALTH AND WELLNESS TOURISM
Headlines
Trends
Prospects
Sector Data
Table 82 Number of Hotel/Resort Spas: Units 2001-2006
Table 83 Spa Sales by Type: Value 2001-2006
Table 84 Spa Consumer Markets: Domestic Tourism 2005-2006
Table 85 Spa Consumer Markets: Arrivals 2005-2006
KENYA AIRWAYS LTD
Strategic Direction
Key Facts
Summary 2 Kenya Airways Ltd: Key Facts
Summary 3 Kenya Airways Ltd: Operational Indicators
Company Background
Competitive Positioning
Summary 4 Kenya Airways Ltd: Competitive Position 2006
ALLIANCE HOTELS & RESORTS GROUP
Strategic Direction
Key Facts
Summary 5 Alliance Hotels & Resorts Group: Key Facts
Company Background
Competitive Positioning
Summary 6 Alliance Hotels & Resorts Group: Competitive Position 2006
BUDGET CAR & TRUCK RENTAL LEASING LTD KENYA
Strategic Direction
Key Facts
Summary 7 Budget Car & Truck Rental Leasing Ltd Kenya: Key Facts
Company Background
Competitive Positioning
Summary 8 Budget Car & Truck Rental Leasing Ltd Kenya: Competitive Position 2006
BUNSON TRAVEL SERVICES LTD KENYA
Strategic Direction
Key Facts
Summary 9 Bunson Travel Services Ltd Kenya: Key Facts
Company Background
Competitive Positioning
Summary 10 Bunson Travel Services Ltd Kenya: Competitive Position 2006