This archive report was first published on 5 May 2020.
As the COVID-19 pandemic continues to ravage the world, the tourism and travel sector in Kenya is bearing the brunt of the crisis. With hotels closed and aviation operations stalled, travel agents are among the hardest hit, facing huge losses due to airlines' refusal to refund cancelled air tickets.
According to Joseph Kithitu, a Board Member of the Kenya Association of Travel Agents (KATA), travel agents have been severely impacted by the failure of airlines to refund tickets, resulting in a cash flow challenge for both agents and their corporate clients.
“Travel agents on the travel sector have been hit very hard since they no longer issue flight tickets thus resulting in direct loss of business and cancellation of the tickets earlier issued which the airlines have refused to refund. This decision by airlines not to refund canceled tickets is a significant cash flow problem for the agents and their corporate clients,” Kithitu said.
The aviation industry is among the worst-affected sectors globally, with the International Air Transport Association (IATA) predicting that travel will pick up gradually from the fourth quarter of 2020, with the airline industry expected to bounce back in 2022-2023.
However, Kithitu warned that the future of travel will be marked by increased expenses, with airlines and airport operators imposing stringent health guidelines, including social distancing and health screening for travelers at airports.
“Travel restrictions will be in place since social distancing is bound to become the norm along with stringent health screening for travelers at airports. All this adds up to higher costs for airport operators and airlines and therefore higher fares for travelers,” Kithitu noted.
Despite the challenges, KATA is planning to engage with the government to ensure tax measures in place are favorable and other regulations are put in place to boost the comeback of business.
