PHOTO | DENISH OCHIENG Once completed, the luxurious Villa Rosa Kempinski Hotel on Waiyaki Way, Nairobi, is expected to help Kenya position itself as a premier financial, travel and business destination by attracting more business tourists.? NATION MEDIA GROUP
By?JOSHUA MASINDE jmasinde@ke.nationmedia.com AND LILLIAN ONYANGO laonyango@ke.nationmedia.com
Posted? Saturday, May 25? 2013?at? 16:49
Kenya is angling for a piece of the Sh2.6 trillion global conference tourism market to bolster the return of a sector recognised as a key foreign exchange earner.
The ministry of Tourism plans to establish Meetings, Incentives, Conferencing and Events (Mice) centres in all 47 counties to attract investors in the hospitality industry interested in setting up prime hotel facilities to attract tourists.
According to Tourism PS Ruth Solitei, the ministry intends to devolve this Mice segment of tourism to the counties following the establishment of regional secretariats.
In addition to Nairobi, other counties being initially targeted include Mombasa, Kisumu, Nakuru, Isiolo and Naivasha.
In Africa, Kenya is only second to South Africa as the most preferred Mice and business tourism destination, according to the International Congress and Convention Association (ICCA).
Players in the hotel sector, which accounts for 60 per cent of market share, have touted this as the next high growth segment for the industry. Already, several reputable international brands like Hemingways and Kempiski are opening hotels between now and 2014.
Kempiski, established in 1897 as a luxury hotel group, recently opened Villa Rosa on Waiyaki Way in Nairobi. In the coming months, other hotels, including Emaar, Radisson Blu, Marriot, Park Inn Hilton, Lonrho hotels and Rezidor are expected to set up base in Kenya as the country positions itself as the premier financial, travel and business hub in East and Central Africa.
Industry players say that between 10,000 and 15,000 hotel rooms will be required within the next five to 10 years to satisfy the demand for rooms that?s expected from a burgeoning Mice segment.
Kenya, ranked 58th globally among the most preferred Mice destinations, is now moving to capitalise on the ranking by increasing investments in the hotel sector, infrastructural improvement, security? and diversification of tourist attractions.
The earning potential for this segment is expected to exceed 60 per cent of the total earnings in the tourism sector in coming years as more and more people travel both for business and pleasure.
This is compared to the past where most of the earnings from tourism were drawn from the leisure segment with travellers seeking to sample Kenya?s beach and safari attractions.
?This is the fastest-growing industry in the world, with a 20 per cent growth rate,? Kenyatta International Conference Centre Managing Director Fred Simiyu said.
Last year, Kenya earned Sh96 billion from tourism with the Mice segment reported to have contributed significantly to the earnings. International visitor arrivals stood at 1.7 million last year, a decline of 5.5 per cent from 1.8 million in 2011 with the sector?s performance affected by a slowdown in the global economy, especially in the euro zone, coupled with travel advisories stemming from security concerns.
The lack of high-quality hotels and infrastructure has stifled the growth of the Mice segment as international business travellers seek alternative destinations.
Last year, the United States held more than 800 global conferences compared to just 29 that convened in Kenya. Locally, city conferencing has proved to be the most popular owing to the more business-oriented nature of cities and the availability of a wide range of facilities.
Nairobi, which emerged as the 100th best destination globally from 104 the previous year, and second-best after Cape Town in South Africa, hosted 22 of the international meetings. Mombasa and Naivasha hosted two conferences each, while Embu, Nakuru and Eldoret each hosted a single event.
Last year, Naivasha made its debut in the continental rankings of most popular international meetings destination.
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