KENYA & HELLAS

Business & Investment Cooperation

Perspectives in Tourism.

Presented by;

Muriithi Ndegwa, OGW

Managing Director,

Kenya Tourism Board.

Table of Contents • Sector in a Nutshell

• Country Strategy

• The Big Picture

• Tourism Performance

• Why invest in Kenya

• Categories of investments

• The Product – Nairobi & Mombasa

Kenya at a Glance…

Population

42 million (2012 est.)

with population growth

rate of 2.67 percent

Political System

Unitary State with

Multiparty Democracy

GDP per capita

US$ 808

Languages

Swahili and English are

official languages.

Climate

Kenya lies on both sides of

the equator and enjoys a

varied climate ranging from

tropical to temperate

Currency KES 87.34 : US$ 1 (August

2013)

Area 582,646 km2

GDP at current US$ US$ 33.62 billion

The Sector in a nutshell

• Tourism is one of the Key pillars of Vision

2030

• Sector contributes 12% of GDP

• Major source of foreign Exchange

• One of the major sources of Employment

The Sector in a nutshell • VISA: Tourists are able to get visa on arrival at a cost of USD 50

• FLIGHTS:

• Nairobi. 2nd largest airline Hub in Africa

• Daily connections to Asia, Europe, Middle East, Americas, rest of Africa.

• 34 International airlines

• 120 flights Daily – 60% International.

• PRODUCT VARIETY: Beach, Wildlife Safari, Culture, Landscapes,

Adventure, Sports, MICE, heritage, etc

• WEATHER: Tropical, Excellent!

• INFRASTRUCTURE: 4 international airports - Nairobi, Kisumu ,

Mombasa & Eldoret with Domestic air strips serving all game parks &

reserves

• PEOPLE – Warm, friendly Kenyan People

The Big Picture • High altitude training camps

• Rift Valley with 6 lakes – World heritage status

• Snow capped Mt. Kenya on the equator

• 9 Marine parks & reserves

• Annual Wildebeest migration

• 59 National Parks and game reserves

• 480 km of white sandy beaches

• Diverse culture (42 languages)

• Abundant wildlife & home of Safari

• Over 40 Golf courses

The Country Strategy - Vision 2030

• The Vision: “Become a top ten long-haul tourist

destination in the world that offers a high-value, diverse

and distinctive visitor experience”

• The Medium term goals – By the year 2017

– Arrivals

– Revenue

– Positioning

– Bed capacity

Sector Performance- International Arrivals

Sector Performance - Revenue

11% 3%

24%

13%

2%

47%

SHARE BY REGION

Asia Middle East Africa Americas Oceania Europe

CRUISE 2009

CRUISE 2010

CRUISE 2011

MIAM 2009

MIAM 2010

MIAM 2011

JKIA 2009

JKIA 2010

JKIA 2011

12,096

558

856

176,469

232,698

233,844

763,916

862,586

1,030,436

SHARE BY PORT OF ENTRY

11% 3%

66%

5%1% 10%

4%

SHARE BY PURPOSE (JKIA)Business Conference Holiday On Transit Study VFR Others/Not Stated

Why Invest In Kenya

• Massive infrastructure development

• ICT & Communication - coverage of GSM

network both voice and data.

• Improved online access and payments systems

•Discovery of oil in Northern Kenya

•A new port commissioned in Lamu

Why bet on Kenyan tourism?

• CHANGE! – towards a middle income

economy – Vision 2030

• Revamp of Airports (Nairobi, Mombasa &

Kisumu)

• Upgrade of the Port of Mombasa

Summary of Investment opportunities

NO AREA OPPORTUNITIES

1 BED CAPACITY Target of 65,000 beds by 2017

2 AIR SEAT CAPACITY Need for Direct flights into Nairobi

3 TOURISM PRODUCTS •Resort cities •Amusement parks •Convention facilities •Water sports & Marinas

INVESTMENT IN RESORT CITIES • Priority for the MTP 2013/17 is:

1. ISIOLO

2. LAMU

3. TURKANA

4. KONZA ICT CITY

• Why:

– LAPSSET infrastructure project supports it already

– Diversify tourism to Northern Kenya

• Value additions; Road, Rail, Sea Port, gas, oil and water

refineries.

INVESTMENT IN CONVETION CENTRES

• NAIROBI: Kenya currently has only one large

international conference centre (KICC).

• MOMBASA: plans are in progress to build a

modern convention centre.

INVESTMENT IN ACCOMODATION

• Current Bed capacity – about 40,000

• 60% of beds are available at the coast and in the major parks and

reserves; Maasai Mara National Reserve, Tsavo East and West

National Parks and Amboseli National Park.

• Targeted Bed capacity by 2017 – 65,000

• Five additional international hotels in Nairobi, Mombasa at

the coast and Kisumu at the shores of Lake Victoria in the west.

Investment in an airport hotel in Mombasa.

In Kenya, you’ll be spoilt for choice

International hotel chains & Lodges are choosing Kenya

17 new hotels including;

•Hemingway's collection

• Mahali Mzuri

• Radisson Blue • Eka Hotel

• Kempinski • City lodge

• Boma Hotel • Impala Sanctuary

Examples of Major Investors in the Kenya:

Categories of Tourism Accommodation Facilities in National Parks

& Reserves

Commercial Leases are awarded for development of the following types of

facilities:

1. Lodges: Solid walls facilities, constructed up to two-level on permanent,

reinforced concrete foundation. Guests are provided with usual amenities

including restaurants, bars, swimming pools, and Gift shop. Etc. Developers

are allowed a maximum of 60 visitor beds.

2. Eco-lodges: Constructed of semi-permanent solid walls of natural

materials that blend well with the environment, minimum concrete is

recommended. Usual amenities are provided. A maximum of 60 beds of

separated bedrooms units constructed on one level with minimum concrete

3.Luxury Tented Camps: One level facility, preferably on wooden

raised decks constructed of canvas and other materials that blend

with the environment. Developers are allowed from 24 beds to a

maximum of 40 beds.

4.Star-bed Camp: erected on raised wooden sleeping platforms that

are partially covered with a thatched roof. Movable beds located on

these platforms can either be directly under the stars or under the

roof, as weather permit. These camps will have a maximum of 10

beds, and are made entirely of natural materials.

j

3.Luxury Tented Camps: One level facility, preferably on wooden

raised decks constructed of canvas and other materials that blend

with the environment. Developers are allowed from 24 beds to a

maximum of 40 beds.

4.Star-bed Camp: erected on raised wooden sleeping platforms that

are partially covered with a thatched roof. Movable beds located on

these platforms can either be directly under the stars or under the

roof, as weather permit. These camps will have a maximum of 10

beds, and are made entirely of natural materials.

INVESTMENT IN ENTERTAINMENT

• Amusement Parks,

• Clubs,

• Casinos,

• Theatres,

• Specialty Restaurants

Nairobi

Nairobi, Kenya’s heartbeat • JKIA, Africa’s business hub-over 120 flights daily.

• Wilson Airport -busiest small aircraft airport in

Africa.

• Only city with a national park – 15 minutes away

• Truly cosmopolitan

• Host to UN offices – only one in developing world

• Plenty of cultural & entertainment activities

The Swahili Coast

• Cities - Malindi, Mombasa & Lamu (World heritage

status)

• Beach – North coast/South coast

• Forest & National parks - Arabuko-

Sokoke, Shimba hills & Tsavo

• Marine parks

Guarantee to investors in tourism in Kenya

• Against expropriation of private property - Constitution

of Kenya

• Repatriation of capital, profits and interests

• Insurance on foreign investments against non-

commercial - Multi-lateral Investment Guarantee Agency

(MIGA).

• Arbitration cases between foreign investors and host

governments -International Center for Settlement of

Investment Disputes (ICSID)

Our contacts Kenya Tourism Board

P.O Box 30630 – 00100

Nairobi, Kenya

www.magicalkenya.com

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