Research and Markets: Kenya Tourism Report Q1 2010 Revises Upwards Their 2009 And 2010 Growth Forecasts From 1.1% And 3.4% Previously

Research and Markets(http://www.researchandmarkets.com/research/3489ac/kenya_tourism_repo) has announced the addition of the "Kenya Tourism Report Q1 2010" report to their offering.

The Kenya Tourism Report provides industry professionals and strategists, corporate analysts, tourism associations, government departments and regulatory bodies with independent forecasts and competitive intelligence on Kenya's tourism industry.

The recent introduction of the air passenger duty (APD) for departures from UK airports to long haul destinations has caused concern for the Kenyan tourism industry, with players fearing that they could lose British tourists. The new rates, which took effect from November 2009, mean an increase of GBP90- GBP100. National newspaper the Daily Nation said that Kenya is already struggling to compete with destinations such as Egypt, Morocco and Tunisia, which are closer to Europe. This follows a disastrous 2008, mired by post-election violence that caused many of the world's tourist boards to recommend not travelling to Kenya at all.

Like many countries around the world, Kenya promoted domestic tourism in 2009 in an attempt to counter balance the fall in international arrivals, but there are limitations to this strategy. First, while international tourists are drawn to the inland game parks, domestic tourism and attracting tourists from neighbouring African countries is focused on the Indian Ocean beach areas around Mombasa. Newspaper The National reported that the coastal areas were packed during a holiday weekends but that the holidaymakers were almost all Kenyan. Second, domestic holidaymakers do not spend as much as Western tourists and do not generate foreign exchange earnings. Almost exactly 50% of travellers arrive in Kenya by air, with three quarters flying into Nairobi and the rest to Mombasa. Political Risk

Prime Minister Raila Odinga has claimed that there are no splits in the coalition government's cabinet regarding the way in which to deal with the alleged perpetrators of post-election violence. In July 2009 he said: 'It is a matter of extensive and intensive consultations and I am sure the cabinet will reach an agreement,' when asked about the prospects for setting up a local tribunal to try the suspects. However, the establishment of a local court would likely be politically unpopular. According to a poll conducted by Steadman, 68% of Kenyans want violence perpetrators to be tried at the International Criminal Court.

Economic Risk Kenya is set to achieve relatively favourable growth in a global context, with the publisher's real GDP growth forecasts for 2009 and 2010 revised up to 2.5% and 3.9% respectively, followed by trend growth around 4.6% annually over 2011-2014. Latest data suggest that Kenya is weathering the global recession relatively well, auguring for robust economic activity over the coming quarters. Kenya has outperformed the publisher's expectations, giving us reason to revise upwards their 2009 and 2010 growth forecasts from 1.1% and 3.4% previously.

Headline inflation in Kenya fell to 17.8% year-on-year (y-o-y) in June from 19.5% y-o-y in May. A spokesperson for the Kenya National Bureau of Statistics (KNBS) attributed the decline to 'a continued fall in the prices of cabbages, potatoes and other seasonal food items'. According to the data, prices of food and non-alcoholic drink declined by 2.6% month-on-month (m-o-m) in June 2009. Underlying inflation, which excludes food items, also trended down, falling to 5.8% y-o-y in June from 7.0% in May. The publisher expects that headline inflation continued declining over the remainder of the year, hitting 12.0% y-o-y by end-2009.

Business Environment Kenya is East Africa's most developed country. Prior to the post-election crisis in December 2007 and earl 2008, the country achieved swift economic growth and a high level of political stability. Kenya attracts business thanks to its reasonably good airport facilities, flexible labour regulations and investment laws, which allow foreign investors to receive the same treatment as local investors. However, there are weaknesses in the business environment, most notably a high level of corruption, which can make it difficult for local businesses and foreign firms to operate in a transparent fashion.

Key Topics Covered:

• Executive Summary
• SWOT Analysis
• Industry Forecast Scenario
• Market Overview - Travel
• Market Overview - Hospitality
• Business Environment
• Company Profiles
• How The Publisher Generates Their Industry Forecasts

Companies Mentioned:

• Kenya Airways
• TPS East Africa
• Sarova Hotels
• Heritage Management
• Abercrombie & Kent

For more information visit http://www.researchandmarkets.com/research/3489ac/kenya_tourism_repo