This archive report was first published on 12 June 2020.
On June 12, 2020, Treasury Cabinet Secretary Ukur Yatani presented the 2020/21 budget estimates to Parliament, sparking mixed reactions from the tourism industry.
While the sector had been expecting tax breaks, visa fees waivers, and other incentives to help recover from the devastating effects of the coronavirus pandemic, the budget fell short of their expectations.
CS Yatani allocated Sh3 billion for the sector recovery, up from the earlier announced Sh2 billion, and set aside Sh2.5 billion for the Tourism Promotional Fund and a further Sh3.8 billion for the Tourism Fund.
However, industry players felt that the allocations were insufficient to revive the sector, which has been severely impacted by the pandemic.
"We expected a tax break and cushioning licences for about six months until we start recovering from the effects of the pandemic," said Kuldip Touring Company and Indiana Beach Apartments managing director Ishpal Oberoi.
Mr Oberoi termed the Sh2 billion tourism stimulus package a drop in the ocean, saying that levies on fuel should be reduced and other licences should be reduced.
Kenya Association of Hotelkeepers and Caterers (KAHC) had wanted the government to increase the Sh2 billion tourism stimulus package to Sh50 billion.
KAHC Coast boss Sam Ikwaye said many investors have started selling their establishments, citing the lack of sufficient funding to revive the sector.
"The nature of the industry is such that there is heavy investment, and so the Sh2 billion is little money compared to the damage caused by the pandemic. It cannot even move the tourism economy," posed Dr Ikwaye.
Industry players are now calling on the government to provide more incentives and funding to revive the sector, which has been severely impacted by the pandemic.
