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Tourism Industry Suffer a great loss.
According to the Ministry of Tourism and Wildlife, Kenya is currently the third-largest tourism economy in Sub-Saharan Africa after South Africa and Nigeria. Tourism is one of the key drivers of Kenya’s socio-economic development
In an interview, Cabinet Secretary for Tourism Najib Balala said that the tourism sector is 10% of the country’s GDP and has generated Ksh160 Billion while employing about 1.6million people hence creating job opportunities.
Najib says over 90% of the industry has shut down owing to unemployment, businesses, and the economy. With many losing their jobs, the legislator says that the ministry is considering some measures like presenting their issues to the national treasury and national government to look at some of the issues to be considered.
Najib Balala Cabinet Secretary for Tourism : Photo Courtesy
However, the government has taken a step ahead in the reduction of Resident Corporate Income Tax rate from 30% to 25%, reduction of Turnover Tax rate for SMEs from 3% to 1%, and reduction of Personal Income Tax top rate (PAYE) from 30% to 25%. This is to mitigate the effects of COVID–19 to the Kenyan economy.
The CS says the tourism managements have to change their attitude and services towards their client. Clients have to be treated equally to help revive the sector.
The ministry has set aside Sh500 million for the sector as part of our post-coronavirus (Covid-19) recovery plan to help restore destination confidence to ensure that Kenya remains a desired safari destination globally. Ksh200 million will be spent on Public Relations and communication while Ksh300 million will be spent on marketing campaigns.
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