Investment Opportunities Available Within the Tourism and Hospitality

Sector in Kenya

ByDr. Ibrahim MohamedPrincipal Secretary

Ministry of East African Affairs, Commerce and TourismDepartment of Commerce and Tourism

ContentBackground

Investment in New Tourist Attractions

Investment in Travel Facilitation

Investment in Accommodation Facilities

Investment in Food and Beverage Services

Investment in Tourism and Hospitality Training

Financing Models

Investment Incentives

Reasons to Invest in Kenya’s tourism Sector

Tourism Support Infrastructure

Background Economic Contribution of Tourism

10% of the GDP A leading Foreign Exchange Earner (20%) 9% of Total Wage Employment Identified as one of the key economic drivers under

Vision 2030 Tourist arrivals projected to increase from 1.7 million

in 2012 to 3 million 2017

Kenya’s tourism Product Diverse wildlife, beautiful scenery, wilderness,

pleasant climate & white sandy beaches Rich cultural and historical heritage

Reasons to Invest in Kenya’s Tourism & Hospitality Industry Fully liberalized economy with a free foreign exchange

regime

Strategic location –for Eastern & Central Africa with a coastline and a port at Mombasa (new port at Lamu being developed)

Massive infrastructural development going on or planned. E.g LAPSSET Project, Standard Gauge Railway, Expansion of JKIA

Developed Air transportation system (Regional hub)

Reasons to Invest in Kenya’s Tourism & Hospitality Sector Membership to regional trading blocs COMESA, EAC

Prospects for Oil, natural gas and Coal to reduce cost of energy

Devolved system of governance to open up investment opportunities in counties.

Improved regulatory and licensing regime e.g. One-stop shop initiative.

Investment in New Tourist Attractions and Niche Tourism Products Development of 3 high end resort cities in Isiolo,

Turkana and Lamu (Land identified in Isiolo and Turkana).

Investment in conference facilities in major cities e.g Nairobi, Mombasa, Kisumu

Proposed sites for conference facilities include Mombasa and Nairobi

Health and Medical Tourism

Agro-tourism

Cultural – Heritage Tourism

Investment in New Tourist Attractions and Niche Tourism Products

Sports tourism

Golf resorts

Water-sport facilities and marina across Kenyan water ways

Shopping malls

Recreational facilities and theme parks

English Point - Mombasa

Vipingo Ridge - Kilifi

Investment in Accommodation Facilities We require 30,000 additional beds in

high quality accommodation facilities by 2017

International standard hotel at Bomas of Kenya adjacent to Nairobi National Park (80 acres available)

Development of a Lake View Resort in Kisumu (20 acres available)

Hotels in the proposed Integrated cities e.g Konza and Machakos

Real estate facilities apartments and Homestays

Investment in Accommodation Facilities (Contd) Eco-lodges and Luxury Tented Camps

2 sites in the Meru Conservation Area 6 sites –Western region 11 sites –Tsavo East & West 1 site - North-Eastern (Marsabit

Nat.Reserve) 5 sites – Northern Area (Sibilio, L.Turkana,

L.Baringo and L.Bogoria Other sites outside protected areas

Eco-lodge facility

Investment in Food and Beverage Services

Specialty restaurants – expanding markets demand for diversified cuisine

Outside catering services

Investment in Travel Facilitation Regional and

domestic air services e.g Local charters, low cost airlines

Tour Operations

Travel Agents

Short-duration cruises (Coast, L.Victoria)

Investment in Tourism & Hospitality Training

Ronald Ngala Utalii College – 60 Acres in Kilifi, Coast

Encouraging development of other privately owned institutions

Investment in Tourism Support Infrastructure Superhighways e.g from Mombasa (Kenya) to Kigali

(Rwanda), Moi Int. Airport – Milindi Road

Proposed mass rapid transit system will require investments in buses, traffic control systems, etc

Power generation plants (Geothermal, Hydropower, wind power, etc)

Renewable energy equipment

Telecommunication services

Financing Models

Short –term and long-term loans by Tourism Finance Corporation (Kenya Tourism Development Corporation)

Public Private Partnerships (PPP)

Build Operate and Transfer (BOT): is a form of project financing, wherein a private entity receives a concession from the private or public sector to finance, design, construct, and operate a facility stated in the concession contract.

Commercial Bank loans

Thank You