Sumary of Kenya: Yatani’s Cuts to Tourism Budget Rattles Sector Reeling From Covid-19 Effects:
- The tourism sector is headed for a shock after National Treasury Cabinet Secretary Ukur Yatani indicated he will cut its funding in the new financial year by up to 30 per cent, rattling an area of the economy already suffering from the effects of Covid-19..
- In the Budget Estimates for 2021/2022, the sector will see its current allocation of Sh9.4 billion, the largest ever, reduced to Sh6.97 billion, with Treasury chopping nearly all its promotions programme budgets..
- The improved performance, it says, can be attributed to growth in aviation, investor confidence, withdrawal of travel advisories, visits by foreign dignitaries, and high-profile international conferences..
- The tourism sector has faced several challenges that, Treasury says, were addressed through concerted efforts between different players..
- These challenges included the Covid-19 pandemic and the effects of lockdowns and movement restrictions locally and internationally, security threats, environmental challenges, inadequate infrastructure, insufficient funding, seasonality of tourism..
- “Targeted areas include the completion of the Ronald Ngala Utalii College project, full operationalization of the Tourism Promotion Fund, continued funding of tourism promotion and marketing to increase tourist arrivals and earnings..
- In May last year, President Uhuru Kenyatta unveiled a comprehensive package to rescue the ailing tourism sector in the wake of the coronavirus pandemic….