Kenya’s tourism industry boomed in 2023, with international arrivals reaching a record-breaking 2.09 million. This represents a 35.4% increase compared to 2022 of 1.54 million.
Earnings from tourism surged 32% to KES 352.5 billion ($2.7 billion) last year according to the Tourism Research Institute‘ Sixth Edition of its Annual Tourism Sector Performance Report.
Factors Driving Growth
This performance was supported by key developments in the aviation sector that witnessed increased air connectivity playing a key role.
During the year, three airlines launched direct flights: IndiGo (Mumbai-Nairobi), Fly Dubai (Dubai-Mombasa), and Airlink (Johannesburg-Nairobi).
In addition, Kenya hosted prestigious events like the Africa Climate Summit 2023 and the EU-Kenya Business Forum attracted visitors. Further, Nairobi’s ranking as the top city in the world by Lonely Planet boosted tourism.
Subsequently, the number of local conferences held in Kenya grew by 11% from 9,662 in 2022 to 10,725 in 2023. International conferences also saw a 9% increase from 896 in 2022 to 977 in 2023.
In the period, nearly half (44.8%) of international visitors came for leisure purposes, while business travel accounted for 23.7%.
“The arrivals generated tourist inbound earnings of KSh.352,544,008,170 representing a growth of 31.5%. Out of the total tourist numbers, 1,351,438 (69.3%) and 154,203(7.9%) entered Kenya through Jomo Kenyatta International Airport (JKIA) Nairobi and Moi International Airport (MIA) Mombasa, respectively,” data from TRI reveals.
Other top borders that contributed to the numbers were Busia, 147,125 (7.54%), Namanga, 109,050 (5.6%) and Malaba, 47,132 (2.4%).
Hotel Occupancy Sees Improvement
Kenya’s hotels experienced significant growth in bed occupancy rates, particularly in November (32.4%). This surge is attributed to:
- Holiday Season: Increased domestic travel around Christmas and New Year.
- European Winter Escape: Visitors seeking refuge from harsh European winters.
“At the same time, the country had a bed capacity of 135,350 of which 19.44% beds were in Nairobi, Nakuru 10.35%, Mombasa 8.19%, Kilifi 9.6%, Kwale 6.29% and Kisumu 4.25%.”
“In terms of international bed occupancy, for January to September, there was an increase from 1,958,140 in the year 2022 to 3,038,466 in the same period for the year 2023, indicating a growth of 55.2%.”
“On the other hand, domestic bed occupancy grew by 8% from 3,050,969 in January to September 2022 to 3,300,438 in January to September 2023.”
Positive Outlook
The tourism industry is expected to maintain its momentum due to several factors:
- Continued Growth: More international arrivals are anticipated.
- Aviation Expansion: Further development in the aviation sector is expected.
- Hotel Industry Investment: New hotel projects like the recent JW Marriott opening will add capacity.
- Nairobi’s Appeal: Recognition as a major travel destination and a preferred conference venue will attract visitors.
“It is therefore predicted that in 2024, the destination will receive 2,381,371 tourists hence exceeding pre-COVID levels. This is a positive sign for the overall health and resilience of Kenya’s tourism industry.”
Challenges to Consider
- Unpredictable Weather: Flooding due to extreme weather events could pose a risk.
- Construction Costs: Rising construction costs may impact development.
- Non-Performing Loans: An increase in non-performing loans in the hotel sector could hinder growth.
The Kenyan tourism industry is well-positioned for continued success, with a robust strategy focused on wellness tourism, boutique hotels, technological advancements, and sustainable practices.
