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Mombasa, December 29, 2004

President Mwai Kibaki cuts the tape to officially open the Sun N Sand Beach Resort in North Coast, Mombasa.Looking on is from left First Lady Mrs. Lucy Kibaki, Mr. Amir Visram the chairman (third left) and Mr Mahmoud Visram, the Managing Director (President's left)

President urges investors to improve tourist facilities

President Mwai Kibaki has urged investors in the tourism sector to improve tourist facilities to enable the country reclaim its share in the global tourism market.

Noting that the industry has great potential to make a significant impact on the Government's poverty reduction efforts, President Kibaki stressed that investors should strive to make tourists hotels and restaurants meet international standards to attract more tourists.

"The onus is upon all of us therefore to develop good, well-managed facilities not only to cater for our new emerging markets but also for our other visitors as well as the domestic market," the President said.

He added: "As you all know, tourists travel from distant countries to come and spend their time and money in our country. It is therefore important that the facilities we provide are of the highest quality and give our tourist visitors the greatest comfort."

The President was speaking today when he officially opened the renovated Sun and Sand Beach Resort at Kikambala in Kilifi district.

The President, at the same time, asked investors to invest more in domestic tourism in order to cushion the industry during off-peak seasons and during times of difficulties within the conventional generating markets.

On its part, the Head of State said, the Government is committed to ensuring that the tourism sector is revitalized.

"The government recognizes the important role that tourism plays in Kenya's economy, in terms of its contribution to the Gross Domestic Product, creation of job opportunities and foreign exchange earnings," President Kibaki said.

He observed that currently the sector is ranked as the number three foreign exchange earner after tea and horticulture, adding that the impact of tourism is widely felt through forward and backward linkages.

"The impact of a vibrant tourism industry is clearly evident from increased demand for goods and services in the agricultural, beverage, transport and entertainment sectors," the President said.

He said the Government has created the Kenya Tourism Development Corporation (KTDC) as the instrument of developing and diversifying Kenya's tourism industry.

Said the President: "KTDC also provides advisory and financial services to investors."

President Kibaki added that the Government has also established the Kenya Tourism Board to promote and market Kenya's tourism potential both locally and internationally.

He noted that the sector has over the last two years continued to improve, due to the aggressive destination marketing efforts undertaken by the government, jointly with the private sector.

President Kibaki, however, expressed concern that Kenya is still far from realizing its full tourism potential, saying at about 500,000 visitors realized last year, Kenya's share of the global tourism market remains very low. .

"Globally, the tourism industry is growing very rapidly at a rate of about 10 percent per year. I see no reason why Kenya should not reap the benefits of this fast growing industry," he emphasized.

He called for continued aggressive marketing and further diversification of the tourism products to include eco-tourism, sports tourism and cultural tourism, to ensure the rapid growth of the industry which in turn will generate many high value jobs for the unemployed Kenyan youth.

In this regard, the President further disclosed that the Tourism Trust Fund has been created to build capacity in the vital sector.

He, once again, assured investors in tourism that the Government is systematically addressing the issues that have previously been of concern to them.

The President pointed out that improved financial management within Government has stabilized interest rates despite the high international oil prices, saying investors can now make long-term investment plans.

He said the security situation has also improved over the last two years, noting that the Government has established the tourist police unit to ensure the security of tourists.

Present were First Lady Lucy Kibaki, Ministers Raphael Tuju and Najib Balala, Assistant Ministers Danson Mungatana and Morris Dzoro, several Members of Parliament, Mombasa Mayor Taib Ali Taib and Coast PC Cyrus Maina among other Coast leaders.