This archive report was first published on 8 June 2020.
Published on June 8, 2020, the Tourism Finance Corporation (TFC) has initiated talks with local banks to ensure the Sh2 billion tourism stimulus package reaches hotel operators.
Managing Director Jonah Orumoi said the talks were aimed at enabling hotels, tour operators, and airlines to access the funds to refurbish establishments and meet operational costs as they move towards full recovery.
The TFC is reviewing the criteria for disbursing the stimulus cash, which will include scrutiny of an establishment's contribution to tourism development levy, payment of taxes, and the number of employees.
Each pact will see TFC, banks, and an individual lender agree on a restructuring package before the money is released to them.
The stimulus cash will be used to renovate facilities in line with Covid-19 laid-down regulations, including spacing out sitting areas, installation of automated doors, and re-training of staff on procedures of observing high standards of hygiene.
The TFC has also received an extra Sh2 billion for meeting payroll and other operational costs to hotel operators.
With nearly all tourism businesses reporting a drastic reduction of earnings solely blamed on the Covid-19 pandemic, the sector's 1.6 million jobs are at risk of being lost, with 2020 earnings expected to fall flat against last year's Sh163 billion.
