Kenya's domestic travel grows past tourism Board targets

Kenya's domestic travel industry has experienced a significant growth of 14.6 percent, surpassing earlier projections of a mere 3 percent increase set by the Kenya Tourism Board. This unexpected surge in domestic travel has played a crucial role in boosting the country's tourism sector. James Moro, a research analyst at Old Mutual, shed light on the factors contributing to this remarkable growth during a recent CNBC Africa interview. The rise in domestic travel can largely be attributed to local residents exploring their own country, which has positively impacted the tourism industry. Additionally, the continued growth of Kenya's middle class has also played a significant role in the increased demand for travel and accommodation services. High hotel prices have been a noted challenge, but despite this, domestic travel has continued to thrive. The lack of proper allocation of resources towards supporting the domestic tourism ecosystem remains a concern, as the government seems to have overlooked the potential of this thriving sector. The unforeseen growth in domestic travel, which exceeded the earlier projection by 11 percent, caught the tourism board off guard. Factors such as the overall economic climate, the impact of upcoming general elections, and other market dynamics were likely not fully taken into account when the initial projection was made. Moving forward, it will be crucial for the tourism board to reassess their forecasting methods and enhance their capacity to accurately predict and adapt to market trends. Meanwhile, Nairobi-listed company Sasini has made a strategic decision to divest its 60 percent stake in its restaurant chain for 70 million shillings. This move is aimed at redirecting focus towards strengthening earnings from core operations. With the middle class segment showing promising growth in spending power, the decision to exit the competitive restaurant business suggests a strategic shift in Sasini's business approach. As the tourism industry in Kenya continues to thrive and witness unprecedented growth, the government and relevant stakeholders must capitalize on this momentum by implementing supportive policies and initiatives. By fostering a conducive environment for domestic tourism to prosper, Kenya can further solidify its position as a leading tourist destination in Africa.